What do you understand by the term Liquidity?
Liquidity is the availability of liquid assets to a market or company
Simply put, it means how quickly you can get your hands on cash or cash equivalent of your holdings whenever you need it.
Contrary to what most Doom and Gloom finance papers would have you believe, cryptocurrency is very much in demand and a lot of people want to have some crypto in their portfolio. It could be out of curiosity or the innate desire to diversify their investments. Many people, however, find the concepts of exchanges and trading quite challenging. This is a hindrance to the adoption of cryptocurrency as a viable alternative payment option.
INTRODUCING THE LIQUIDITY NETWORK
As the name denotes, Liquidity Network is an Ethereum-based platform built with the goal of providing liquidity for all cryptocurrencies in a safe and secure environment. Liquidity Network is a "Transfer and Swap" Platform that will support every token.
Let's look at their introduction video
FEATURES OF LIQUIDITY NETWORK
Liquidity Network has two main components.
- NOCUST Hub
- REVIVE
Liquidity Network NOCUST HUB
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Liquidity Network functions using "hubs". While Raiden and Bitcoin's lightning use 2-party payment channels, Liquidity Network uses NOCUST multi-party payment hubs to achieve scalability. These hubs all function as side-chains of the main network allowing users to make off-chain transactions that are later added to the main ledger. The reason behind this feature is to save transaction fees and to provide speedy transactions. When users do transactions on the main blockchain, they will have to deal with the traffic on the blockchain and pay the full transaction fees. The Ethereum blockchain also has a maximum transaction speed of 15 transactions per second. However, on a side-chain, there is no traffic hence cheaper/no fees. No traffic also means instant payment and no waiting time.
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Liquidity Network is a Non-Custodial Off-Chain Exchange. Non custodial means the site/platform is not in possession of the users funds but merely acts as an intermediary for payments/transactions to be done. Users trade/transact straight from their wallets and remain fully in control of their private keys. This ensures total decentralization keeping the users safe and secure. The network does the computation and the users transactions are carried out via smart contracts.
Liquidity Network REVIVE
REVIVE is an integral algorithm that allows the different hubs to balance out the transactions carried out on them. This prevents loss of funds and promotes transparency and speed. REVIVE functions using Checkpoints and will be used to interconnect several payment hubs. At every checkpoint, the account balances of all the users in the payment hub can be updated at once in one single operation on the blockchain. Liquidity Network has set their Checkpoint to loop every 36 hours. source
HOW DO WE KNOW THAT LIQUIDITY NETWORK ISNT CHEATING OR SETTING THE NEW BALANCES?
The Liquidity Network has an in-built dispute mechanism to make sure that the payment hub can only operate when all parties are being honest. If a dispute is initiated and a party cannot prove honesty by providing the correct signatures/Merkle proofs, then the last fraudulent checkpoint is cancelled and the compromised payment hub is shut down.
APPLICATIONS OF LIQUIDITY NETWORK
Liquidity Network can be applied in the following fields
• Merchandise
• Gaming
• IoT
• Pay Per View
• Rental Services
• Digital Payments
• Digital Goods
• Blockchain Applications
• Airdrops
and many more.
Liquidity Wallets
To use Liquidity Network, users will have to create accounts in other to operate on the network. The wallets are designed with clear and user-friendly interfaces. Users can use the Liquidity Network web wallet, the Liquidity Network IoS Mobile Wallet or the Liquidity Network Android Mobile Wallet.
Watch how the wallet works here
Bob is an avid fan of an anime site and subscribed for a year. It costs just a few cents per month. However, Bob had some bills to pay this month and couldn't afford to pay the yearly subscription. Bob then recalls the site has a custom loyalty token(ANM) which he can cash in. Normally sending a custom token would incur a large fee on the Ethereum network but by using Liquidity Network, Bob is able to make this payment with a minute transaction fee.
One of the advantages of cryptocurrency is micropayments. Charles walks into a crypto-friendly bookstore and sees a pencil he likes. The pencil costs just 5cents. Unfortunately Charles doesn't have any change. Charles decides to pay using the Liquidity Network. By utilizing its ultra-cheap transaction fees, Charles is able to send a measly 5cents payment without worrying about large transaction fees. The best part? The payment was instant.
WHY LIQUIDITY NETWORK IS SUPERIOR TO OTHER SYSTEMS
Liquidity Network offers many superior functions as a whole. Liquidity Network caters to the user/customer as a Payment Solution, Off-chain Solution and as an exchange. Let us look at how Liquidity Network compares to competition.
Blockchain Compatibility
Liquidity Network is open To Other Blockchains. The released prototype system not only runs on Ethereum but can also run on Ethereum Classic, Neo or Bitcoin(via Rootstock).
Licensed Finance Intermediary
In recent times we've seen calls for regulation and compliance of crypto projects. Liquidity Network is an official member of the Financial Services Standards Association (VQF), the leading, largest, officially recognized self-regulatory organization in Switzerland.
TEAM AND ROADMAP
Liquidity Network is a product of excellent academic expertise. The team boasts a plethora of experience in diverse fields ranging from Security to Blockchain Technology, Software Development, FinTech Management, Communications and others.
Liquidity Network has already deployed its products and is now fully functional. You can see the roadmap to know how far they have come.
To learn more about this wonderful project you can visit the Liquidity Network Website.
You can also read up on the technical details of this project by downloading or viewing the
Liquidity Network WhitePaper | Liquidity Network NOCUST Paper | Liquidity Network REVIVE Paper
Want to reach out to the team? feel free to contact them on any of their social media channels
Liquidity Network Telegram Group | Liquidity Network Telegram Announcement | Liquidity Network Twitter | Liquidity Network Github | Liquidity Network Blog | Liquidity Network Medium | Liquidity Network LinkedIn | Liquidity Network Reddit | Liquidity Network Facebook | Liquidity Network Youtube
ARE YOU A DEVELOPER OR ENTREPENEUR? JOIN THE LIQUIDITY NETWORK CHALLENGES and stand the chance to win amazing prizes for showcasing your creativity.
Get started with the Liquidity Network now!
This is a submission for the @originalworks contest which can be found here
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- U3uuu
Image Credits - All images were derived from the Liquidity Network Whitepaper and Liquidity Network Website.
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