Blockstream Launches Tool to Enable Atomic Swaps on Liquid Network
The Liquid Network is a sidechain linked to the bitcoin (BTC) blockchain which settles payments for crypto exchanges, brokers, market makers, and other financial establishments.
The network also supports privacy features such as Confidential Transactions. Liquid’s goal is to minimize delays in transaction settlements on the bitcoin (BTC) network and facilitate fast and secure transfers.
According to Blockstream’s announcement published on July 1, atomic swaps are now available for “any issued asset such as L-BTC, tokenized fiat, crypto assets, attested assets, & more.” The company also issued in its developer resources set a Liquid Swap Tool configuration guide.
“We’re excited to announce the Liquid Swap Tool. This new tool allows users to execute atomic swaps on the #LiquidNetwork for any issued asset such as L-BTC, tokenized fiat, crypto assets, attested assets, & more. GUI & CLI tool are now available.”- tweeted Blockstream.
Atomic swaps are a feature which allows the instant conversion between two cryptocurrencies without requiring a third party or centralized exchange to mediate the process.
According to a tweet posted on July 1, Blockstream CEO and hashcash inventor Adam Back pointed out that:
“[A]tomic swap between native assets on Liquid L-BTC, L-USDT etc is simpler than cross-chain atomic swap, because the Bitcoin UTXO model transaction rule “inputs add up to outputs” is extended to add up inputs of each type, and types/assets are natively understood”
Liquid CTO and member of crypto exchange Huobi Global, Xiangfeng Cheng, said last month that the technology of Liquid’s sidechain will “enhance bitcoin liquidity, lower interexchange transaction times to 1-2 minutes, and even reduce the spread between exchange prices.”
It was also reported that on June 24, Blockstream signed together with Crypto Garage a BTC-USD derivative contract which is based on a peer-to-peer (P2P) technology called “Discreet Log Contracts.”