Bitcoin’s Liquid Sidechain Makes a Splash on Bitfinex

Embattled Bitfinex has announced the integration of Blockstream’s Bitcoin sidechain, the Liquid Network. The upgrade is already seeing users …
bitcoin liquid sidechainBitcoin Technology

Avatar

Georgi Georgiev| May 10, 2019 | 11:00


Embattled Bitfinex has announced the integration of Blockstream’s Bitcoin sidechain, the Liquid Network. The upgrade is already seeing users impressed with faster and more private transactions.


Bitcoin Liquid Integrated At Bitfinex

One of the biggest cryptocurrency exchanges in the world, Bitfinex, has announced the integration of Blockstream’s Liquid Network.

The Liquid Network is an inter-exchange settlement network which links together cryptocurrency exchanges and institutions in order to enable quicker Bitcoin transactions, as well as the issuance of digital assets.

According to the official announcement, the integration will allow for tighter exchange spreads, faster trading, as well as improved confidentiality.

Speaking on the matter was Paolo Ardoino, CTO at Bitfinex, who outlined:

Issuing Bitcoin, stablecoins, and various other digital assets under one blockchain platform makes a lot of sense. […] It reduces the integration burden for an exchange like ourselves, and traders can manage all their assets from a single wallet application. We’re excited to be active on the Liquid Network, and we’re looking forward to watching it develop.

Results Are Already Showing

The integration of Liquid is already proving to be worthwhile, according to derivatives trader Federico (@Federico_Xmas), who noted:

Just tried transferring BTC from TheRockTrading to Bitfinex using Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved.

Just tried transferring BTC from @TheRockTrading to @bitfinex using @Blockstream Liquid, the transaction was executed and confirmed in less than 5 minutes, and best of all the amount is confidential to outside observers. Congrats to both exchanges and all other people involved 👏

— Federico 🎅 (@Federico_Xmas) May 9, 2019

Unlike Bitcoin’s public blockchain, transactions carried out on liquid are private by default. This means that the amounts, as well as the types of assets transacted, are hidden from third parties.

Liquid Network Gaining Traction

Launched in October 2018, the Liquid Network is quickly gaining traction all throughout the space. According to a recent blog post, the network has added 14 new members, including Bluefire Capital, Huobi, OpenNode, Gate.io, and others.

liquid bitcoin

Moreover, the company has revealed that further integrations are also going to go live in the coming weeks. Perhaps one of the more interesting upcoming developments is the fact that BitMEX is also working with Blockstream to support L-BTC deposits and withdrawals.

Additionally, Tether (USDT), and Stably (USDS) have also revealed plans to launch on Liquid.

Back in March, Blockstream also released a user-geared wallet for its Liquid sidechain asset called Liquid Bitcoin (L-BTC).

Bitfinex meanwhile was recently served with a court order by the New York Attorney General, alleging a cover-up of $850 million in losses. While no charges are being sought at the time, the exchange says it’ll fight the ‘false assertions.’

What do you think of Bitfinex integrating Liquid? Don’t hesitate to let us know in the comments below!


Images courtesy of Shutterstock

Related Posts:

  • No Related Posts

Monero’s (XMR) lead developer, Riccardo Spagni, helps Jameson Loop discredit Craig Wright

On 9th May 2019, Jameson Loop had published an op-ed on Bitcoin Magazine where he discredited Craig Wright’s claim of being Satoshi Nakamoto.

On 9th May 2019, Jameson Loop had published an op-ed on Bitcoin Magazine where he discredited Craig Wright’s claim of being Satoshi Nakamoto. Under the legal counsel of Craig Wright, Jameson Loop’s article has been geo-blocked in the UK and Australia.

Following the Geoblocking of the article, a number of people joined together and copy pasted the article on other websites to ensure people in the UK and Australia can read the article. Riccardo Spagni, the lead developer of the privacy-focused cryptocurrency, too created several copies of the article, so people can read it.

If you’re in the UK or Australia and want to read up on how Craig Wright is a massive fraud, I’ve got you covered fam.https://t.co/sw72iVc9qghttps://t.co/hiqrxdOCK0

Ads of Koinfox

Advertisement

— Riccardo Spagni (@fluffypony) May 9, 2019

Jameson Loop’s Op Ed

Jameson Loop, the lead developer at CASA, wrote an op-ed in which he points out flaws in Craig Wright’s claim that he is Satoshi Nakamoto. He uses past actions of Satoshi Nakamoto and compares them with statements Craig Wright has said publicly.

Some of the points raised by Jameson Loop are,

  1. Satoshi Nakamoto always mentioned Bitcoin as “Bitcoin” while Craig Wright in his early writings from 2011 mentioned Bitcoin as “Bit Coin”.
  2. Wright said that he never called Bitcoin as “cryptocurrency” while Satoshi Nakamoto did on many occasions.
  3. Craig Wright publicly said “I am a lawyer and this [financial law] is my area of specialty,” while the real Satoshi Nakamoto in 2010 said “I am not a lawyer and I can’t possibly answer that”

The entire article can be read here.

Ads of Koinfox

Advertisement

Get the latest news on Blockchain only on Blockmanity.com. Subscribe to us on Google news and do follow us on Twitter @Blockmanity


Did you like the news you just read? Please leave a feedback to help us serve you better

Post Views: 53

Related Posts:

  • No Related Posts

Ethereum’s Joseph Lubin: Bitfinex, Tether Situation ‘Probably Won’t Get Better’

As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived …

Ethereum co-founder Joseph Lubin, who’s also the founder and CEO of cryptocurrency-related software company ConsenSys, has recently stated he believes the Bitfinex, Tether situation seems to be a “really big mess” that “probably won’t get better.”

Speaking to Bloomberg at the sidelines of the Fluidity Summit conference in New York, Lubin revealed he thinks some good may come out of it, as other stablecoins may gain traction. He was quoted as saying:

Tether is somewhat important to our ecosystem because it’s used by different institutions to effect more fluid trading. There are other price-stable tokens out there — many others — and I think they’re going to gain traction because of this. I think that will be a really good thing.

As covered, Bitfinex was accused by New York’s Attorney General of participating in a cover-up to hide $850 million in losses. The allegations revived concerns over Tether’s backing, as it was supposed to have 1 USD in reserve for every USDT token in circulation.

Earlier this year the company quietly diluted its reserve claims, and soon after it was revealed that USDT is backed by cash and short-term securities equal to 74% of USDT tokens in circulation. Worryingly, Tether accounted for over 80% of bitcoins’ trading volume as of March of this year.

Bitfinex reportedly lost the $850 million as a third-party payment processor claims the funds were seized by governments throughout the world. To fix the situation it’s set to hold a $1 billion initial exchange offering (IEO) that’s said to already have lined up the $1 billion in commitments.

Regarding concerns Tether’s USDT tokens have been used to manipulate the price of bitcoin – something the US Department of Justice is investigating – Lubin noted that “all prices on the planet are being manipulated.” He added:

Any time that well-resourced actors can get in there and do something, you have to expect them to do that. So we need to build better system.

Lubin added that the “status of things is great,” as last year’s price correction aw the system grow “enormously” as those who were “pulled in by excitement riven by price growth” stayed in the crypto space and have been helping build it.

Related Posts:

  • No Related Posts

Crypto Heresy: Question Blockstream on Twitter and You’ll Be Blocked

“Why are we not talking about Adam Back and Samson Mow, two of the most visible employees of Blockstream publicly siding with Bitfinex given that …

Crypto Twitter (CT) is a grueling battleground between digital currency enthusiasts, company executives, maximalists, journalists, lawyers, and so-called thought leaders and luminaries. For instance, on May 8, reporter Larry Cermak posted data concerning Blockstream and its sidechain project Liquid’s performance over the last seven months. After Cermak shared unbiased figures and queried an alleged conflict of interest, the Blockstream account instantly blocked the journalist.

Also read: Bitcoin’s Software Has Been Rolled Back Before

Liquid’s Lack of Traction Sparks Intense Crypto Twitter Debate

CT is a wonderful place so long as you toe the maximalist party line, sing kumbaya, and tell everyone how great BTC is on a daily basis. Because if you don’t repeat these values, you just might be designated persona non grata. This week on CT, the founding partner at Adamant Capital, Tuur Demeester, tweeted about Blockstream’s latest Liquid announcement and said the sidechain “could become a DTCC for Bitcoin.” In response, The Block analyst Larry Cermak shared data concerning Liquid’s overall performance in the last seven months.

“So far, in its 7-month history, Blockstream is barely gaining any traction,” Cermak replied. “Liquid has had 61,700 total transactions and is currently capitalized with $313,000 from the net value of less than 400 peg transactions.”

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked

Demeester responded: “Let’s wait until tx fees on the main chain spike again.” The following day, after Cermak posted his tidbit of publicly available data, he found out he was blocked by the official Blockstream Twitter account. “This is pretty pathetic — Yesterday, I posted data that showed that Blockstream’s Liquid isn’t doing well (so far) after being live for 7 months,” Cermak tweeted. “Literally I just posted publicly available data and I got blocked by Blockstream’s official account.” Blockstream’s chief strategy officer, Samson Mow, claimed he was the one who blocked Cermak “because he’s a moron.”

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked

Questioning a Conflict of Interest Apparently Makes a Reporter a Moron

So did Blockstream decide to block an analyst for posting data? Well according to Blockstream employees it was really because Cermak publicly asked if there was a conflict of interest between Blockstream, Adam Back, and Samson Mow sticking up for Bitfinex.

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked

“Why are we not talking about Adam Back and Samson Mow, two of the most visible employees of Blockstream publicly siding with Bitfinex given that Bitfinex is an early investor in Blockstream?” asked Cermak. “The conflicts of interest in this space are something else” The Block analyst continued, adding:

What’s the issue with this, some are asking? — And at this point, it seems that the only people siding with Bitfinex and Tether are shareholders or somewhat involved.

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked
Crypto Twitter rules are as follows: “All animals are equal but some animals are more equal than others.”

The Block’s Frank Chaparro asked why simply asking a question brought out all the pitchforks. Blockstream’s Adam Back replied that “It happens to be untrue, however, which I confirmed for another journalist who asked privately about the claim.” Back continued by stating: “Simply the quote ‘It’s because Bitfinex invested in Blockstream’ is untrue, and did not fact check. You don’t have to fact check, but stating as fact untrue allegations is not that cool.” Back seems to think Cermak should have asked people FUDing Bitfinex, and that his defending of Tether was simply him just refuting “publicly known FUD as a public service.”

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked

The story continued as maximalists decided to harass The Block for accepting $25K in funding and allegedly not reporting on Coinbase objectively in an attempt to flip the story back on the publication. However, after defending the news outlet, The Block CEO Mike Dudas disclosed that the company would return the funds to Coinbase. Quite a few crypto supporters thought that Blockstream was wrong for getting upset with Cermak’s objective data and his valid question. After all, a good number of people on CT have already been questioning Blockstream’s seeming conflict of interest.

Crypto Heresy: Question Blockstream on Twitter and You'll Be Blocked

Moreover, the anonymous owner of Bitcoin.org, Cobra, detailed that he was also blocked by Blockstream for questioning them. He remarked that when Coinbase and Bitmain were catching flak from the community they never blocked people and he insisted that members of “Blockstream are delicate snowflakes.” Cobra is also known for questioning Blockstream when Back showed support for Halong Miners, a startup accused of simply buying Innosilicon miners and applying Halong stickers on them for resale.

The thought police on CT are starting to look no different than the pigs in the famous Orwell novel Animal Farm. The social media platform is filled with teenage angst, confirmation bias, and groupthink, and is no different to the archetypal high school groups that thrive on immaturity and bullying.

What do you think of the events on Twitter between The Block’s Larry Cermak and Blockstream? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Animal Farm, Twitter, and charts shared by The Block.


At Bitcoin.com there’s a bunch of free helpful services. For instance, check out our Tools page!

Share this story:
Related

Deepdotweb Duo Indicted for Linking to Darknet Markets

FEATURED | 5 hours ago

Federal indictments unsealed on May 8 have revealed further details of the case against Deepdotweb’s operators. Tal Prihar, 37, an… read more.

Crypto Adoption Remains Strong in Venezuela Amid Political Chaos

FEATURED | 15 hours ago

The political tension in Venezuela has affected local cryptocurrency adoption. While there are roadblocks, many crypto-advocating projects continue to thrive… read more.

Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

Related Posts:

  • No Related Posts

How does public blockchain technology work?

The blockchain was initially introduced with Bitcoin by Satoshi Nakamoto, a person or group of people who remains anonymous. Although there is no …

Blockchain technology, the base layer that works as the database where crypto transactions live, exists in the realm of DLTs, or distributed ledger technology. Although a blockchain is always a DLT, a DLT may not be a blockchain.

The difference between DLTs and blockchain is based on permissions and roles. While in the first system there can be multiple roles assigned to different users, such as administrator, operator and so on, in a blockchain all users have equal permissions and rights.

Explaining blockchain technology

Blockchain technology is a cryptographically secured distributed ledger run by crypto incentives that allows network nodes to transact in a peer to peer (P2P) decentralised fashion, and to reach consensus on the state of every transaction of the global network chain. Implementing disintermediation can reduce failures inherent to centralised platforms, such as lack of transparency, corruption, coercion, censorship, excessive market power and transaction costs.

The blockchain was initially introduced with Bitcoin by Satoshi Nakamoto, a person or group of people who remains anonymous. Although there is no reference to its name on the original Bitcoin whitepaper, the blockchain represents the database where original Bitcoin transactions live.

When practitioners and scholars refer to blockchain in general, they refer to an open governance where everyone can participate in the P2P network and validate transitions, and to the data infrastructure, which is composed of a chain of blocks in a distributed ledger nature (distributed database). In terms of infrastructure, all cryptos present a blockchain infrastructure, like the original Nakamoto idealisation. However in terms of governance openness, post-Bitcoin blockchain cryptos tend to present other degrees of openness. These no longer represent the initial conception of Nakamoto’s Blockchain.

Public blockchain components

A public blockchain is composed of five main technologies:

  1. A public distributed ledger, or database, where information is written through posting transactions. Any user can write to this database by sending or receiving a transaction. Addresses are pseudo-anonymous and all recorded information is linked in multiple blocks, all time-stamped by the creator.
  2. PGP encryption, or pretty-good-privacy, that creates private-public addresses. This technology allows any user to prove they are the owner of a piece of data, without showing their master key (or password). In essence we can show another user we are the owners of an address (an account) without showing our credentials. It gives users much needed privacy to transact independently digitally.
  3. A cryptocurrency, or token, that is associated to all transactions that occur on any given blockchain. Tokens can grant its owners different properties, such as the right to write on that blockchain, voting-rights, income-rights and so on. A token can be a representation of a good, a currency, a collectible, or a digital representation of any asset. Cryptocurrencies are essential as they give an incentive for users to keep the network secure.
  4. Distributed consensus, usually associated to proof-of-work (PoW), or the technology that requires any user who wishes to validate transactions and to keep the network secure, to waste energy by resolving complex computational problems. The incentive is the cryptocurrency reward validators (or miners) receive for keeping the blockchain secure. The idea is that by requesting blockchain validators to keep wasting energy in order to find the solution to the computational problem at hand, usually called hash, we maintain the security of the network by making it hardly impossible for anyone to have more than 51% of the voting power. Thus, consensus remains decentralised.
  5. A permissionless P2P network, in order for users to own their cryptocurrency and not depend on third-parties (like banking infrastructure of traditional payment channels). It allows them to transact freely with one another. P2P is based on the idea users can be the owners of their data, as it gets stored publicly but can only be accessed by the owner who possesses the right key-pair.
DLT Blockchain
Permissionless P2P No Yes
Distributed database Yes Yes
PGP Encryption Yes Yes
Cryptocurrency No Yes
Distributed consensus Yes Yes

Conclusion

Blockchain technology can help build a better web 4.0, however, cryptocurrency enthusiasts should focus on permissionless and public technology, rather than private-blockchain use-cases, simply because the future is being built on top of a permissionless technology.

If we do not make an effort to start promoting increased value-sharing between companies and users, we might be unable to find solutions to many of the data and money ownership issues we have to deal with nowadays.

The post How does public blockchain technology work? appeared first on Coin Rivet.

Related Posts:

  • No Related Posts