Liquidity Network; Providing more efficient and Cost effective payment and exchange platform in the blockchain today.
The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value. Information held on a blockchain exists as a shared and continually reconciled database.
Private key cryptography
Peer-to-peer (P2P) Network
Program (The blockchain’s protocol)
The result is a system for digital interactions that does not need a trusted third party. The work of securing digital relationships is implicit — supplied by the elegant, simple, yet robust network architecture of blockchain technology itself.
In the case of blockchain technology, private key cryptography provides a powerful ownership tool that fulfills authentication requirements. Possession of a private key is ownership. It also spares a person from having to share more personal information than they would need to for an exchange, leaving them exposed to hackers.
Authentication is not enough. Authorization, having enough money, broadcasting the correct transaction type, etc. needs a distributed, peer-to-peer network as a starting point. A distributed network reduces the risk of centralized corruption or failure.
This distributed network must also be committed to the transaction network’s recordkeeping and security. Authorizing transactions is a result of the entire network applying the rules upon which it was designed (the blockchain’s protocol).
Authentication and authorization supplied in this way allow for interactions in the digital world without relying on (expensive) trust. Today, entrepreneurs in industries around the world have woken up to the implications of this development unimagined, new and powerful digital relationships are possible. Blockchain technology is often described as the backbone for a transaction layer for the Internet, the foundation of the Internet of Value.
In fact, the idea that cryptographic keys and shared ledgers can incentivize users to secure and formalize digital relationships has imaginations running wild. Everyone from governments to IT firms to banks is seeking to build this transaction layer.
Authentication and authorization, vital to digital transactions, are established as a result of the configuration of blockchain technology.
Another interesting information about the blockchain is that the technology is not private, anyone can view the contents of the blockchain, but users can also opt to connect their computers to the blockchain network. In doing so, their computer receives a copy of the blockchain that is updated automatically whenever a new block is added, sort of like a Facebook News Feed that live updates whenever a new status is posted.
Each computer in the blockchain network has its own copy of the blockchain, which means that there are thousands, or in the case of Bitcoin, millions of copies of the same blockchain. Although each copy of the blockchain is identical, spreading that information across a network of computers makes the information more difficult to manipulate. With blockchain, there isn’t a single, definitive account of events that can be manipulated. Instead, a hacker would need to manipulate every copy of the blockchain on the network which is practically almost impossible.
Considering the security of blockchain, Blockchain technology accounts for the issues of security and trust in several ways. First, new blocks are always stored linearly and chronologically. That is, they are always added to the “end” of the blockchain. After a block has been added to the end of the blockchain, it is very difficult to go back and alter the contents of the block. That’s because each block contains its own hash, along with the hash of the block before it. Hash codes are created by a math function that turns digital information into a string of numbers and letters. If that information is edited in any way, the hash code changes as well.
Different forms of blockchain technologies evolve on a daily basis but yet they aare faced with one challenge or the other, there is a new technology that has profound solutions to all these pressing challenges.
Introducing Liquidity Network
Liquidity Network, a non-custodial financial interface that offers payment and exchange service. This network supports and ensures the security of millions of users, reducing transaction costs to a significant level but yet adopting the mainstream of blockchain technology. The Liquidity Network is diversified such that it utilizes the idea of centralized computational power to achieve high speed exchange and the security model of decentralized exchange networks.
The Liquidity Network is built upon two keycomponets:
The Liquidity Hub NO-CUST (Non-Custodial)
The non-custodial nature simply means that the network is not in custody of any individual, i.e. it is decentralized. This can be said to be the main feature of this platform that qualifies it as a blockchain technology.
Liquidity Exchange is an independent off-chain exchange that is built at the top of the liquidity network. This system is designed not to hold any funds while performing atomic swaps off the chain. This exchange platform solves the problem of excessive transaction fees, Blockchain congestion and also capable of handling millions of transactions at a time.
Features of Liquidity Network that makes it better than current solution
Enabling Micro-payments and Small Value Transfer (SVT): This enables a very minute transaction costs.
Instant payment and exchange: sending and receiving crypto instantly without any delay.
No rigid locked funds: the funds allocated can be used to pay any other member of the liquidity network.
Simplicity: the system has a very simple design that avoid complex routing.
Transparency: the system is auditable, i.e. giving summary of every transactions.
Privacy: it offers enhanced transaction privacy.
Security: every payment transactions are secured by the Blockchain.
No custodian: payments are secured by the blockchain, therefore no centralized accounts. Funds are owned by the users at every point in time.
Flexible fees: fees are paid by either the sender or the receiver, depending on the bargain by both parties.
It is Generic: the platform is built on the Etherium crypto coin and it is portable to any contract on the blockchain.
Novelty of the network
Here, we will be discussing the novelty of the network as it relates to the exchange and the payment features respectively.
The Liquidity exchange performs instant off-chain swaps without any delay resulting in holding back the users fund. Even though on-chain transactions are charged, these charges are negligible.
Despite blockchain congestion, the Liquidity exchange can still operate providing more stable and professional service level.
The off-chain swaps are very fast up to the level or even exceeding the speed of normal traditional centralized exchanges.
Liquidity Network operates with simple routing topologies, avoiding complex topologies for the sake of reduced latency.
Liquidity Network offers free transaction between any two members who are willing and ready to make payment from different payment hubs.
Liquidity network also offers instant and off-chain channel establishment that requires no initial crypto.
How Liquidity is better than current solutions (Liquidity Network Architecture).
The idea of Universal Hub is used in the design of the Liquidity Network and Exchange. The off-chain hub is concerned with transactions within a single hub. With this, a user that is joining a hub can instantly transact his funds with another member in the same hub at a very significant low cost compared to the usual on-chain transactions.
The hub architecture is something new compared to preexisting exchange networks because funds are no longer locked between two users, these funds are accessible by thousands of other users on the same hub. Surprisingly, these funds cannot be stolen because it is secured using blockchain technology, no user can steal funds that has been allocated to other users.
The interconnected hubs can be referred to as the Multiple Liquidity Network payment hubs, involving the transaction between two eligible users who are members of different hubs coming together to perform an off-chain payment across different interconnected payment.
Advantages of the Architecture
The Liquidity Network community is currently implemented for ethereum enabling millions of users and payment processors to exchange crypto.
Since the Liquidity Network is built upon the Ethereum bockchain, it enjoys the already existing benefits, development and research of the ethereum community.
With this new design, the Liquidity Network architecture solves some pressing challenges that preexisting exchange platforms have not been able to solve till date. These challenges includes:
Rigid locking of funds.
Complex design and routing topologies.
Congested and delayed channel establishment.
Centralized and dependent transactions.
Decentralization of the Liquidity Network
The Liquidity Network is designed to become a redundant and decentralized network of hubs.
There are three (3) questions to be answered in order to be able to properly define decentralization.
Who owns the funds?
How redundant is a system?
Can a central entity censor?
The users own the funds and can claim them at any point in time as long as their private key is intact. The hub operators or any other entity cannot steal the users funds because the hub is not a bank, neither is it a custodian
Liquidity Network is designed in a way that many hubs can be interconnected to form a network of hubs to provide redundancy, i.e. hubs that can take over the system in case of unforeseen emergencies that may occur in the system, similar to a network of Lightning peers.
A hub can decide not to forward payments. In this case, the user can simply remove his funds from the hub’s smart contract, this action cannot be prevented by the hub operator. The user would then join another hub so his payments can be forwarded.
Solving the issues of high transaction costs using off-chain hubs
The REVIVE is an integral part of the Liquidity Network that allows different hubs to rebalance their respective balances. With REVIVE, users in a particular payment channel network can securely rebalance their channels according to the preferences of the channel owners. While rebalancing, no honest participant can lose his/her funds as it is assured in the security analysis. This solution does not require any on-chain transactions but increases the scalability of existing blockchains.
Displaying the Web and Mobile wallet interface
Airdrop;one of the best Applications powered by Liquidity Network.
Airdrop is a popular community building tool that offers lots of good features, these mind blowing features are discussed below.
Airdropping tokens available to millions of users
Little No transaction costs
No custodian required
Instant and fast drop enabled
No security problems through private key leakage
Receiver can instantly forward drops to friends to multiply the network effect
New engagement possibilities: possibility to send multiple drops, different amounts, without any extra cost.
These are the mind-blowing features offered by the new Liquidity powered application, Airdrop. None of the preexisting or current market can offer these features so far.
Few problems of current market that has been solved by Airdrop, the Liquidity powered app. These problems includes:
- Problem of Custodian (Decentralization): this involves a wallet provider that holds the user’s private keys, just like a bank, it is not regarded as being decentralized.
- Problem of insecurity: sending private keys to users whenever they need to make a transaction makes the whole transaction vulnerable as it can easily be bridged by hackers.
- Problem of delay: making millions of transactions that results in delay and extra transaction charges.
- It is expensive: users have to pay for every off-chain transactions irrespective of the amount of transactions to be carried out.
Comparing Liquidity Network to Other Exchanges
Markets experience many different evolutions on a daily basis, but this has not been the case for crypto currency markets because I believe the network is very diversified and complex to just come up with new inventions. But today, crypto currency has taken another direction experiencing an increasing volume. New technologies and brilliant ideas coming up on a daily basis concerning crypto exchange markets. On like the previous centralized markets where users funds are trusted by the exchange operators which is not safe. Liquidity Network has envisioned an exchange market that allows instant trades without being custodian, safe user funds secured by the blockchain, fast transaction and very low transaction cost.
Comparing Liquidity to other payment solutions
Comparing Liquidity to other off-chain solutions
Comparing Liquidity to other exchanges
The Token allows the holder to participate in the Liquidity Network, it is an access Token to pay for auxiliary services such as channel monitoring. The personal end users of the system will be the main source of demand for usage of the network, hence, to facilitate the creation of this demand, end users will not be Compelled with having to interact using LQD tokens. The primary purpose of the LQD Token is to be used to access premium features in the Liquidity Network. For example, to guarantee a particularly high number of transactions per second, the user will need to provide certain amount of LQD Tokens to the hub provider.
Considering Mr Felix, a business man in Abuja, Nigeria who deals with buying and selling of crypto, he invest most of his time and money in this business but despite his tremendous effort, he makes little profit due to the excessive charges and the delay in the delivery time on the exchange platforms he was operating on. Due to these challenges, he loses customers on a daily basis to other big marketers. He could not increase his own personal transaction charges because the market is highly competitive and by doing so, he will lose his entire customers to other marketers. But now, Liquidity Network has come with a solution to all these problems and Mr Felix has embraced this opportunity. Now, Mr Felix is one of the biggest crypto marketers in Abuja with over 75% added customers because he is now very reliable and competent. Liquidity Network has changed his life for good and he is living happily making more than enough profit on a daily basis.
Considering the wonderful features offered by the Liquidity Network, I will say categorically that no exchange platform has been able to offer these features to their users without demanding for something in return. I think this is the best offer anyone can get from any exchange network and I will advise those who are already in the network to value and make good use of it. For those who are not yet in the network, you are really missing out, why continue paying for transactions and waiting on the queue before your transactions can be made when you can get it done in a twinkle of an eye for free? I welcome you to the Liquidity Network, enjoy and make more money.
The Liquidity Network Team
Brief Overview of Liquidity Network
For more information & Resources
All images were sourced from Liquidity Network website and white paper unless otherwise indicated.