Evolution of Blockchain is here
Even though the crypto market has undergone rapid market rectification, blockchain's use overall is increasing at a significant pace but needs more boost by making working with blockchain easier.
Current speed of blockchain transactions is very low at around 10-20 per second in which a single person's transaction might take many minutes or maybe even hours to send payment and the payment may not be of the value due to relatively high transaction fees. These factors are already bearing negative effects on adoption of blockchain.
This scalability and fee problem has been solved by Liquidity Network which according to me is bringing new life and perception to blockchain itself.
Liquidity network's characteristics include:
- Transaction speed of 100,000 transactions per second.
- Easy to access.
- Negligible transaction fees.
Now you might argue with me why only Liquidity Network and why not NANO which have similar characteristics. But the difference lies under Liquidity's efficient working and better security.
Liquidity Network offers efficient off-chain payment hubs. These off-chains are constructed such that they can scale more transactions with increase in their userbase. Quite Innovative, right? But how?
To understand this we will have to understand the working of transactions under Liquidity Network.
The off-chain transactions don't send their info and value on chain which is time consuming but instead uses a private server to transfer value. Security? Don't worry it is much different.
The two payment methods here are:
- 2 party payment channels: This is not that unique but just a regular chain transaction like Bitcoin or Ethereum where the sender's assets are somewhat collateralized. This is Unidirectional.
Then comes bi-directional where both parties have to deposit collateral. The risk with this unique off-chain is that one of the two parties can steal funds of the other part or can invalidate transactions thus colonising the other party.
- N-party Hubs
"N-party hubs remove much of the computational work that the above mentioned 2 party hubs require as pertains to balancing collateral. This makes transactions faster, cheaper and encourages more people to participate in the hubs."
Liquidity Network hub offers free off-chain channel registration. This offers simple routing.
These funds cannot be held on a server, therefore the security of funds is never compromised even though it is run by Liquidity's private server.
The N- party hubs creates more liquidity in the network therefore increasing it's capability over time which is quite opposite in cryptos like Bitcoin and Ethereum.
"Liquidity's surprisingly simple solution is to have an ofd-chain server running together with a smart contract. Anyone can run their own servers and all the funds of the accounts on these servers are in the control of users with private keys to those accounts. "
You might ask, "Then how is it decentralized?"
The answer is private keys. The private keys used by you cannot be copied or be used by not only other users but liquidity network itself. So your funds are decentralized and safe.
If you did not understand what I have written or want to know more about the flawless Liquidity Network, you can check out about them in detail and can participate in their ICO using this link:
This post is an entry to the ongoing contest by @originalworks. The link for participating:https://steemit.com/crypto/@originalworks/2500-steem-sponsored-writing-contest-liquidity-network