The bitcoin network goes well beyond its own native blockchain. Various solutions have been developed over the years to improve scalability, among other things.
One of those options is Liquid, a sidechain solution developed by Blockstream. This Network has now become part of BTCPay Server.
What is the Liquid Network Again?
Blockstream develops Liquid as a sidechain-based settlement network for traders and exchanges. This allows for quicker and confidential bitcoin transactions. It is also a network capable of supporting the issuance of new digital assets.
Transactions on this network can be settled within two minutes. This is a five-fold improvement compared to bitcoin’s own network. For traders, speed of execution is crucial. Being able to move funds between exchanges and wallets without unnecessary delays is a big boon.
The confidentiality of transactions is an interesting addition. It suits users who want to hide asset types and mounts by default. This degree of privacy addresses another core problem found in bitcoin itself. Being fully transparent is great on paper, but it doesn’t work well for all use cases.
Several noteworthy players in the cryptocurrency industry utilize the Liquid Network today. They include the likes of BTSE, Bitfinex, Bull Bitcoin, OKCoin, Poolin, and Xapo, to name a few. Bringing this technology to more people will be crucial, as it can help improve overall bitcoin adoption.
BTCPay Server Integration
Merchants looking to accept bitcoin payments have plenty of options at their disposal. Using BTCPay Server is the best option, as it gives the merchant full control. As the developers of this merchant solution have integrated the Liquid network, retailers can leverage the improved speed and privacy for payments.
All of the benefits provided by this network will be provided. Those include the two-minute settlement time, which is crucial when dealing with payments. Having to wait 10 minutes for one network confirmation – or an hour for the full six – is not acceptable. All Liquid Bitcoin issued on the Liquid Network are backed by actual BTC.
For customers, this offers a lot of extra functionality as well. The Confidential Transactions aspect is something a lot of people have been looking for. Additionally, they too benefit from the faster settlement through L-BTC or tokenized USD on this sidechain.
For the bitcoin industry, this integration is a pretty big deal. It is due time to see more merchants embrace bitcoin payments these days. Unfortunately, most of them remain hesitant due to the slow network speed. Liquid Network, combined with BTCPay Server, makes for a compelling argument.