Reaching Scalability in The Blockchain Universe thanks to the Liquidity Network

Currnet Challenges of the Blockchain Technology

It is known that many people have put their eyes on the blockchain technology in recent years. The increase in the number of users, the increase in the number of cryptos, and the increase in the volume of assets in the market make it clear that the world population is betting on this new world of decentralization boosted by the Blockchain technology. Mainly the interest is in making payments and trading in decentralized Exchange platforms based on the Blockchain technology.

A great external evolution also implies a great internal change. The Blockchain technology must overcome the challenge of earning global acceptance. However, there are currently many bottlenecks that prevent blockchain-based platforms to get their potential success. For example, they should be able to function with higher transaction speed, they should have more capacity to handle high transaction volumes, only users should have 100% control of their own funds (security), and they should have low fees per transaction.

Exchanges must be able to meet all these needs to solve the high demand that exists. Platforms such as Bitcoin and Ethereum (the top cryptos in the market) have had some difficulties in adapting to the exponential increase of new users. Scalability, speed, and security have been the main pain spots that Bitcoin and Ethereum must overcome to keep improving their platforms.

Liquidity Network is a platform with the ability to fully develop the Blockchain decentralized networks, so Liquidity can help to reaching scalability to other Blockchains. Its objective is to solve the problems of scalability through its ingenious and novel design, which focuses on transactions off-chain payments hubs.

Liquidity Network gives the possibility to existing platforms to improve their services, it is designed to solve current scalability problems. It is built on top of the Ethereum Blockchain with the possibility of supporting millions of users. Liquidity Network is as fast as the centralized Exchanges but it is based on the decentralized Blockchain networks that give security and full funds control to the users.

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Liquidity is resilient to Blockchain Congestion. Transaction fees are almost zero, it is scalable, secure, easy to use and built to carry Off-Chain, instant transactions.

The innovative design of Liquidity

Liquidity Network solution avoids blockchain congestion, allowing the Exchange to be scalable, allowing thousands of transactions per second and at a low cost. The concept behind these features is the UNIVERSAL HUB.

Each Hub is operated off-chain, with an operator and with a Smart Contract associated with the users' fund balance. Users within a Hub can make transactions with each other. So, each user that participates in the Hub can pay and exchange their cryptos instantaneously. Since Hub transactions are approved and confirmed off-chain, there are no transaction fees associated with them.

The innovation of Liquidity is to implement and join an off-chain server with a Smart Contract. Each user will always have control of their private keys. In addition, Liquidity Network combines the best of centralized systems and the decentralized Blockchain system. Liquidity joins Speed ​​and Security.

NO-CUST (Non-Custodial)

Off-chain transactions are made without third-party custody; this lowers the transaction fees, which are associated with on-chain transactions. So, with this design, the transactions will only depend on the network speed and the bandwidth of your internet connection.

The users inside a Hub have absolute control over their funds, therefore over their private keys. For example, if the user decides to withdraw his assets, no one can prevent him from doing so, the Liquidity Network is censorship resistant.

Liquidity can handle millions of users without problems by Hub. Since it can handle blockchain congestions, maintenance costs are low as well as installation costs. Liquidity Network achieves this through an off-chain server working in conjunction with a Smart Contract.

REVIVE

REVIVE protocol allows users to rebalance their balances off-chain, granting enhanced security levels. In addition, REVIVE allows users (randomly) within a network (payment channels) to establish the conditions they wish to rebalance their channels in a secure manner.

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Liquidity Network can be made as scalable as desired since after the rebalancing is carried out through the off-chain transactions, it is not necessary to add any on-chain transaction.

Liquidity is NOT a Centralized Network

Unlike banks, Hubs neither guard nor control users' funds. Therefore, while the owners maintain the private key safe, no one will be able to access their funds. Liquidity is also able by design to connect many Hubs with each other. This creates redundancy in the network, allowing always find a way to execute the transaction as quickly as possible, similar to a Red Lightning Peers. If there is a conflict with the funds, users can choose to change Hub, and retrieve their funds from the problematic Smart Contract.

1. A user of a payment hub can transfer to another member of the payment hub without commissions (zero transaction fees).
2. Transactions are carried out in a secure and private manner.
3. Easy to use, due to its simple design. It is stable and provides an unparalleled user experience, due to its simple and user-friendly design.
4. Smart Contracts are used in the Hubs. If a dispute arises there are no problems, the Blockchain can be queried to prove who is the honest party and solve the dispute.
5. As Liquidity uses off-chain payments transactions are made instantly.
6. Since the commission for transfer to another user is negligible, it allows micropayments and Small Value Transfers to be possible.
7. Liquidity can work without problems even if there is congestion in the Blockchain.

Liquidity Network creates its own token, it is an ERC20 compliant token. The main objective of the LQD is to integrate the end users and the merchants. In addition to using it to cover expenses for services on the Liquidity platform.

The LQD seeks to have great opportunities in the market, since it is very useful due to the ease of exchanging it, the low transaction fees and its speed, users can enjoy making payments and micropayments in any of the markets they want (Merchandise, IoT, Gaming, Pay per view, Services, Applications, Goods and so on). The use of the LQD will undoubtedly be very important for the Liquidity off-chain ecosystem. Since Liquidity Network wants to integrate its token into the market to attract the highest number of end users and give it added-value services.

Comparison of Liquidity and other kinds of payments methods

Below is a table comparing Liquidity with other Exchanges.

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Liquidity Network is presented as the next innovation in the exchanges world. Since it gathers several unique characteristics, such as: speed, resistant to blockchain congestion, security to users' funds, scalable and low transactions fees. Next another comparative table between Liquidity and other payment methods:

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Anastasia is a girl who knows the world of cryptocurrencies since December 2017, she had read about the most common and important platforms such as Bitcoin and Ethereum. One of the great utilities that Anastasia has taken advantage of in cryptocurrencies is the payment to merchants and keeping their money in cryptos. She loves saving his funds in Ether and Bitcoin because she feels safer than saving them in a bank. However, sometimes she has problems when making micropayments because the network is a bit slow and the commissions are more expensive than the good that she bought.

Her best friend recommends some platforms that work with off-chain payment channels since they can be easily adapted to her needs. He recommends four platforms: Comit, Raiden, Lightning and Liquidity Network.

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After doing some research, Anastasia decides on Liquidity, since she gathers more positive characteristics to fulfill her wishes. Liquidity offers more alternatives to Blockchain Support, is less expensive, it has simple routing, it has free off-chain Registration, and so on.

Liquidity offers a new application for Airdrop lovers (issuers and users) since it solves the problems of centralization, security, scalability, and speed present in current Airdrops.

As in Liquidity, there are no custodians, there will be no more problems for the security of the private keys of the users. In addition to not having high costs per transaction, it will allow reaching to more users, thus fulfilling the Airdrop's objective more quickly.

Therefore, for communities that wish to develop themselves through tools such as Airdrops have in Liquidity their best ally.

Every day thousands and thousands of users continue to join this new world. So, the scalability on blockchain platforms has to be equal to or better than the globalization of the system.

This is possible thanks to solutions such as Liquidity. It can perform atomic, off-chain swaps to reduce the associated costs per transaction, allowing millions of transactions instantaneously and solving the problems of Scalability. Users can be more satisfied since they can make fast and secure transactions. Liquidity brings together the best of centralized systems (speed) with the best decentralized blockchain systems (security). Thus, Liquidity generates the necessary tools to fully develop other blockchain platforms so that they can scale to the required levels.

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