2018 was a great year for Blockchain technology, almost all the sectors have adopted the technology. Health, Agriculture, Transportation and Financial institutions inclusive. This shows it has a long way to go to help improve us and the society we are in. We can count many advantages of Blockchain technology but there are still pending issues like scalability which is paramount. Scalability in cryptocurrencies such as Bitcoin and Ethereum is truly a big issue in terms of transactions.
Ethereum can only do 20 transactions in a second while Bitcoin manages 7 transactions per second.
This is truly low and can be a major concern for investors who want to bring their money on the Blockchain network. Other financial giants can do better, why can’t cryptocurrencies do too?
Paypal can process 193 transactions in a second and Visa, 1667 transactions per second.
What if I tell you there is a solution to scalability on the Blockchain technology? Will you believe me? Wait, before I go further on that, let me talk a little about banks. Banks are financial institutions that have existed for a long time and we have trust in what they do to keep our money safe. Well, that will make them happy but what will happen if banks fold up tomorrow? Our sweat and years of labour will just fold with the bank? Say no more, let me tell you about an instituition on the Blockchain network that will solve the issues I have raised. It is Liquidity Network.
SourceWhat is Liquidity Network?
Liquidity Network is a scalable Blockchain network payment hub built on the Ethereum Blockchain technology to offer no-fee and instant transfers to millions of users ready to adopt the system. It provides a transparent exchange platform for tokens without gas fee and delay in transactions. In short, Liquidity Network can provide both payment and exchange services to users with the added advantages over other financial systems. I know you will want to know how this is achievable, this is through the implementation of two core academic innovations namely:
The Liquidity NOCUST Hub and
The REVIVE.
The Liquidity NOCUST Hub
To start with, NOCUST can be written as NO-CUST. This actually means No Custodian. What comes to our mind when we talk about Custodian is custody, this means to be in charge or to be in possession of something. In financial sector, we hold our traditional banks as a custodian of our money. We depend on them to hold safe our money as our savings and help to make some payments. Just like the issues I mentioned in the introduction, what happens if our banks (custodians) fold up tomorrow? Why make your bank a custodian when you can have full-control over your finances.
This is why Liquidity Network comes up with a NOCUST Hub to facilitate instantaneous transactions without delay or gas fee. Further details about this will be provided below so hold that thought.
The REVIVE
SourceWith the REVIVE, Liquidity Network has created a system to help the Hubs rebalance payments that occur within. This is to make sure there is no loss and can be compared to the ledger where account must be balanced on both ends. The rebalancing process occurs off-line to avoid congestions on the network during transactions, this is to avoid scalability issues I have discussed above. No wonder, transactions are faster on the Liquidity Network.
The NOCUST Hub Setup
Smart contract is a feature of Ethereum and Liquidity Network is built to provide this feature to users on the network as a leverage of trust. All the users on the network are held by the smart contract, this means if you are on the network, you have to trust the system that won’t fail you.
SourceAs seen in the picture above, there is a NOCUST operator and smart contract. Like I stated earlier, the smart contract binds all the users to the system while Henry, the NOCUST operator, is there to approve off-chain transfers that can be initiated by users. A user can join a payment hub by connecting to the server that hosts the hub. To initiate a transfer to another user on the same payment hub, the user have to deposit ETH (Ether) into his wallet. The user just need to initiate a transfer by contacting the NOCUST Operator and a transfer is made off-chain without delay or excessive gas-fee.
With the REVIVE protocol in place, users can actually ditch a payment hub for another. The protocol will rebalance the hubs to make up for the change. This is giving users freedom over their finances without fear of the system holding their funds. it is the symbiotic process of the REVIVE protocol and NOCUST Hub that makes Liquidity Network operates successful on the Blockchain Network.
When we mention Blockchain Technology, decentralization must surface as a topic. Now, the question is: Is Liquidity Network decentralized?
There are lots of questions that come up when we mention decentralization, but stating some properties associated with Liquidity Network can help answer the questions conveniently.
Under the Liquidity Network, a user can access his funds without fear or interruption in the hub. You are the custodian of your fund as long as you possess your private key.
There is a certain degree of freedom to users as they can ditch one hub for another. Just move your funds from the smart contract of the hub to the other.
Lastly, there can be networks of interconnected hubs on the platform to provide redundancy.
Off-Chain Transaction
I have mentioned off-chain transactions a few times in this article so it is important for me to elaborate on it. There are two categories I will write briefly on so you can understand how it works:
2 - Party Transactions: These transactions are between two users. It can be unidirectional, bi-directional or linked payment channels.
N - Party Transactions: These transactions involve more than two users in a payment hub. N-Party payment hubs involve more than two users and provide cheaper and faster transactions.
The Liquidity Network Product
To make it easier for you, the Liquidity Network team have developed a desktop and mobile wallet for new and existing users.
SourceComparison of Liquidity Network with other Exchanges
I don’t need to write out the differences, I will let this picture below to show you why Liquidity Network has an edge over your well-known exchanges.
SourceAirdrop and Liquidity Network
Liquidity Network will bring a better dimension to Airdrops. Airdrops occur all the time with the company in control. There are times, people get scammed of their tokens because of private keys issuance during Airdrop. This is no more with Liquidity Network. The Airdrop function according to Liquidity Network is to provide a no-custodian, secured, no transaction fee and multiple transactions over a period of time to make airdrop faster. With this function, you and thousands of your friends can receive drops instantly in your wallet and companies can transfer bulk drops to their users without stress.
The Liquidity Network Team
The experience of the team members have led to the success of the Liquidity Network. They work selflessly to provide solutions to Blockchain Technology issues using Blockchain technology.
- Dr. Arthur Gervais.
- Rami Khalil.
- George Sedky.
- Thibault Meunier.
- Guillaume Felley.
- Janine Videva.
- Tony Tran.
- Imran Khan.
- Mohammed Kasstawi.
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