The co-founder of Ethereum, Vitalik Buterin, is one of the most important figures from the blockchain space. Last year he announced that he would stop accepting offers from initial coin offerings and blockchain projects to become an advisor. Going on that path he also stopped endorsing projects.
However, not long ago Buterin announced that his interest in a new project. According to Forbes, the blockchain developer he tweeted about a new project that he’s looking forward “to go live.”
Looking forward to seeing this go live! https://t.co/gRRSSjyFPZ
— Vitalik "Not giving away ETH" Buterin (@VitalikButerin) May 3, 2018
The project called Liquidity Network should solve the existing scalability issues in with which the blockchain world is stuck. According to Buterin, the project gained a lot of traction already, and the mission to become the blockchain version of PayPal is very close to coming to fruition.
The team works on creating a system for fast micropayments and also a decentralized exchange.
What is Liquidity Network?
The whitepaper of the projects starts with “Lightning is economically broken.” Liquidity Network and Exchange will be based on the idea of hubs. The users who will join the hubs will be able to make transactions with other members from the hub. The team wrote that they would be able to make off-chain operations at very significantly lower costs in comparison with on chain transactions.
The brilliance of this project comes from its simple solution for scalability. While we are very accustomed to the “old peer-to-peer” Liquidity will use the “hub architecture.” With this new concept, the funds are not locked between two users; it will be available for the thousands of users on a specific hub. Regarding security, the team explained that the funds are secured by the blockchain which makes it impossible for users to steal money between themselves.
At the moment, the project is only implemented for ethereum, and it will give access to the users to make payments and exchange the cryptocurrency.
The network has been launched on the Ethereum testnet since March 2018, and it is entirely operational. For the moment the users can only create Liquid Ether from the on-chain ethereum and send the off-chain ethereum to another user; who can choose to either forward the off-chain ETH, withdrawal or create an on-chain version. The application is available for Desktop and mobile.
The Features of Liquidity Network:
Off-Chain Atomic Exchange