Swift Payments Sidechain Avoids Congestion and High Fees
Scalability and high transaction fees remain two of the major obstacles to mass adoption of the blockchain. One of the proposed solutions is processing transactions off chain. One off-chain solution, the Liquidity Network, has merited the endorsement of Ethereum network developer Vitalik Buterin. The Liquidity Network is an off-chain payment system designed to transfer micropayments in Ethereum. Payments are rebalanced off-chain to avoid costly on-chain refunding of transaction channels. The “trustless PayPal” eliminates blockchain congestion and miner front running while delivering speedier payment transactions.
HOW DOES REVIVE Scale the Blockchain?
The brain of the Liquidity Network is the work of two computer engineering students at ETH Zurich focused on removing frictions in Blockchain networks. Arthur Gervais and Rami Khalil combined their expertise to develop REVIVE, a transaction processing algorithm with high throughput that solves network congestion. A major function of the Blockchain is support for direct peer-to-peer transaction channels, which significantly reduces costs by eliminating central transaction intermediaries. However, channels must be closed and refunded to clear them for new transactions, a costly on-chain transaction.
Revive Gas Costs
REVIVE allows users to maintain multiple channels with different entities by providing a mechanism to balance the funding of channels. The side chain balancing eliminates the need to go on-chain to clear channels, and thus improves the scalability of the network. Transaction scalability is increased by eliminating costly and time consuming on-chain channel management while users are incentivized to use the lowest cost channels. The off-chain transactions can be performed at trading speeds comparable to that of centralized exchanges.
Fast Blockchain Payments for Everyone
The Liquidity Hub allows any user of any payment hub to make fast peer-to-peer payments. The off-chain Liquidity Exchange does not require tokens as collateral or hold assets. This way the non-custodial system is able to avoid congestion and high fees. Liquidity envisions its ecosystem being used for digital payments, diverse Blockchain applications ranging from gaming to rental services, and in IoT networks. Liquidity plans to operate an open source ecosystem for fast, secure payment processing in which others can operate Liquidity Network Hubs.
The LQD token is not a network access coin but rather used to buy premium services such as faster transaction processing and channel monitoring. Otherwise, regular users do not pay a fee and the ecosystem is free to join.
Symbol: LQD (ERC-20)
Pre-sale: February 14–March 8, 2018 (8 million USD raised)
Token Sale: June 14–July 17, 2018
Token Rate: 1 LQD = 0.611097656
Available Tokens for Sale: 50 million (50%)
Token Supply: 100 million
Hard Cap: 31 million USD
Early bird access opened in January for the Liquidity.Network hub MVP. Web and mobile wallets are now available. The Liquidity Network is expected to be fully functional and atomically swapping ERC-20 tokens in the third quarter of 2018. Merchants will be onboarded in 2019 and the Liquidity Network expanded to other blockchains beyond ethereum, such as Bitcoin, Dfinity and NEO.
Arthur Gervais, PhD – CEO/Co-founder
Rami Khalil – Co-founder
George Sedky – Developer
Guillaume Felley – Developer
Thibault Meunier – Developer
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