THE LIQUIDITY NETWORK
The liquidity network is a payment network that offers the transaction speed and flexibility of centralized financial systems and the decentralized functionalities of blockchain technology. The liquidity network bridges the gap between the centralized financial system and the already existing blockchain system by creating a network that is as fast, cheap and scalable as the centralized system and decentralized and secure as the blockchain.
The liquidity network is launched on the ethereum blockchain and it provides unique solutions to the challenges limiting the mass adoption of blockchain technology. Its solution is based on two key features in its ecosystem known as; nocust hub and the revive. Before I go any further, I would like to outline a few of the problems limiting the mass adoption of blockchain technology below.
THE PROBLEM WITH BLOCKCHAIN TECHNOLOGY
We cannot deny the fact that blockchain technology has opened the door to new possibilities and opportunities in the global economy and its spread has been like a wild fire. But we also know that it’s not yet making the needed impart that it was envisaged to make. The spread of blockchain technology has exposed its limitations and these limitations are preventing its mass adoption in the global economy.
Three prominent problems limiting the mass adoption of blockchain technology are slow transaction speed, high transaction fees and scalability. A technology that is aiming to create a shift from the already accustomed centralized financial system must be able to beat the functionalities of what it is aiming to displace. Blockchain technology has been able to make the world know that decentralization can be achieved and everyone is pleased with such innovation, but for it to gain ground it must be able to guarantee faster transaction speed, perform transactions at a cheaper rate and be able to accommodate millions of users at a go without experiencing any form of congestion, delay or network break down.
One of the greatest undoing of blockchain technology is doing all of its transactions on-chain. Blockchain on-chain transaction won’t be much of a problem if it’s covering just a few number of people or implemented in a small organization. but if such on-chain transaction is applied to hundreds of thousands or millions of people, congestion, slow speed, high fees and even breakdown on the network will become the order of the day.
In order for blockchain to achieve the transaction flexibility and scalability of the centralized system and improve its chance for mass adoption, it must be able to shift carrying out its transactions from on-chain to off-chain. On-chain transaction requires creation of new block for every transaction initiated and this takes time, resources and limit the speed of the network. Though several attempts are being made at implementing of-chain transactions on blockchain but this has not been that effective because one way or the other, the transactions are still brought on-chain for rebalancing and this still create clogging in the network and slow it down.
These limitations are what the liquidity network has proffered a working solution to.
THE SOLUTION OF THE LIQUIDITY NETWORK
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The liquidity network addresses the limitation in current blockchain by providing two innovative components in its network that enables transactions and rebalancing to be carried out off-chain thereby eliminating network slow-down, high transaction charge, congestion and improving scalability of the network.
These two innovative components launched by the liquidity network that will aide the mass adoption of blockchain technology are:
The liquidity hub nocust
The Revive
THE LIQUIDITY HUB NOCUST
Nocust stands for non-custodian and it simply means that the users are in charge of their assets on the network. The liquidity network uses the “hub” framework to carry out off-chain transaction within the network. The network is broken down into various payment hubs that can accommodate millions of users. These hubs functions as payment channels within the network and users within a given hub can perform transactions seamlessly with other users in same hub and with users of interconnected hub.
The network is designed in such a way that users have the freedom to migrate to another with their funds if they are no longer pleased with their present hub. Every transaction carried out in the various hubs are done off-chain, thereby making the transaction instant and regardless of the number of users carrying out a transaction in any of the hubs, the speed of the network is never affected.
Users within a hub can access funds from other users within that same hub and no user can be able to steal any other user’s fund because such funds are stored on the blockchain and it’s very secured. Measures have also been put in place to address any disputes that may occur during a transaction so as to ensure that users within a hub don’t lose their funds to fraudulent individuals.
The Revive
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The Revive is an algorithm that controls the off-chain rebalancing of transactions of the various hubs in the liquidity network. Rebalancing is a major part of all blockchain and being able to do this off-chain is one feature that makes the liquidity network very scalable, congestion free and cheap.
The nocust hub and revive solution of the liquidity network make it possible for transactions and transaction rebalancing to be carried out off-chain on the liquidity network and these two unique features put an end to the limitations in blockchain technology and opens the door for blockchain to be easily adoptable by enabling it to perform optimally.
APPLICATION OF THE LIQUIDITY NETWORK
The liquidity network can be applied to a wide range of fields or industries and one industry that it’s already being applied on is the exchange industry. Liquidity network has applied its novel technology in the creation of an exchange called – the liquidity exchange.
THE LIQUIDITY EXCHANGE
The liquidity exchange fuses the functionality of centralized exchanges and decentralized exchanges. Transactions done on this exchange is very fast and instant. This exchange is non-custodial because it gives its users total control over their funds and private keys. Also, transactions are done off-chain and it is very secured.
The liquidity exchange is a practical implementation of the liquidity nocust hub and revive features. Every transaction done on the exchange is done off-chain thus making the exchange very scalable, cheap to carry out transactions and very fast and secure.
LIQUIDITY NETWORK APPLICATIONS AND INTERFACE
Liquidity network have a desktop and mobile applications with friendly user interfaces. The mobile app supports the popular mobile operating systems and is easily accessible. Users can go to the liquidity website and sign up to access each of the wallets.
Here is a view of both applications:
KEY BENEFITS OF THE LIQUIDITY NETWORK
Smaller transactions can be carried out on the network because it is extremely cheap to carry out transactions on it
Fast and instant transaction is guaranteed
It gives users control of their funds and private keys
It offers scalability to blockchain technology
It’s decentralized and secured
It has a friendly and easily accessible user wallets, etc.
CONCLUSION
The solution the liquidity network offers to the blockchain industry may be what will bring the general acceptance of this technology in every sphere of the global economy and create a real shift from the centralized financial system of the world. I hope the nocust and revive innovative features this network is boasting of meet up to their expectations because they seem to hold key to the mainstream breakthrough of blockchain technology.
For more information, visit any of the links below:
lqd2019
https://steemit.com/crypto/@originalworks/2500-steem-sponsored-writing-contest-liquidity-network
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