Blockstream a blockchain development company has announced the launch of its atomic swap facility through its liquid network that would enable users to transact or do atomic swaps for liquid sidechain assets. The updates have come through a Twitter post on July 1.
The atomic swaps are defined as an interesting solution that would enable the swapping of one cryptocurrency to another. Here, the process eliminates the role of any trusted third party or centralized exchange infrastructure.
The liquid network would facilitate the traders in an efficient way by reducing the time which is required by the Bitcoin (BTC) network that allegedly works with a shorter time span while ensuring secure transfers. The facility can also boost up the arbitrage prospects.
In October 2018, the company launched the Liquid Network- a federated sidechain to the blockchain of Bitcoin. The sidechain is a method which is proposed by the company to scale and improve the transaction times of the Bitcoin network. The new concept would work as a payment and settlement network for financial institutions, cryptocurrency exchanges, brokers, traders. The function would enable the better use of capital from the Layer-1 Bitcoin blockchain.
By enabling atomic swap Blockstream wants to support the issued assets like L-BTC, tokenized fiat, crypto assets, and many undefined segments. The blockchain infrastructure company has also released the Liquid Swap Tool configuration quick start guide for the people to make them understand and adopt the new features according to the updated and available resources.
“Atomic swap between native assets (that require special handling in smart contracts) on Liquid L-BTC, L-USDT etc is simpler than cross-chain atomic swap, because the Bitcoin UTXO (unspent output from bitcoin transactions) model transaction rule “inputs add up to outputs” is extended to add up inputs of each type, and types/assets are natively understood.”
Image Source: Twitter/Blockstream
Tags: Blockstream, hashcash, Adam Back, Liquid Network, Smart Contracts, L-BTC, L-USDT, Tokenized Fiat, Cryptocurrency, Bitcoin (BTC), Liquid Swap Tool, UTXO, L-USDT.