Joy For BTC And Crypto Investors As Blockstream Launches Liquid Atomic Swaps Tool
Pioneering Bitcoin and Blockchain infrastructure firm, Blockstream, has rolled out a new and revolutionary tool designed to enable users to perform atomic swaps on the Liquid network. The tool, according to an official announcement from the company, would support all issued crypto assets.
Blockstream plans to enhance crypto adoption, and part of this quest is to come up with user-friendly tools that aid ease transfer of the assets. It is, therefore, banking on the power of the newly developed tool to significantly help achieve that.
The launch of this new tool is coming several months after the release of the Liquid Network, the firm's highly celebrated production bitcoin side chain. The network, the first of its kind across the world, works to complete and settle payments network for exchanges, brokers, market makers and other important financial institutions.
Further, the network, through Confidential Transactions, supports privacy, making sure that every transaction is discrete. It also helps speed up the pace of finalizing trades done on the BTC network, ensuring that all transfers are quick enough to allow traders' maximize arbitrage opportunities.
It is a feature whereby users will have to “swap” or simply exchange one supported coin for another without going through a trusted third party. In fact, according to the firm's CEO who also is hash cash inventor, Adam Back, all atomic swaps pitting native assets will be much simpler than any cross-chain swaps.
This, he said, is thanks to “Bitcoin UTXO model transaction rule.” And with the launch of the tool, Blockstream effectively opens the door for “any issued asset,” whereby, because “inputs add up to outputs,” get natively understood.”
The kind of atomic swaps supported basically will include all tokenized fiat, digital assets, L-BTC, attested assets and all the various other types. But even as there's a Liquid Swap Tool configuration guide in place, Bitcoin's reputation is exceptional. This is because it enters the network via a unique, peg-in process that allows the BTC to be kept on the main chain as an equivalent amount of liquid BTC (L-BTC) goes into circulation.
The launch of the new tool is coming almost a month after Blockstream praised their highly celebrated platform – the Liquid Securities platform. The platform is intended to be a better and more user-friendly solution for institutions to issue tokens via the Liquid Network.
The Technology Is For The Good Of The Industry
But there's no doubt that the new tool will significantly boost liquidity in Bitcoin while reducing the average interexchange transaction time by a minute or two. This is according to the CTO of Huobi Global, a Liquid Network-member exchange, Xiangfeng Cheng, who also said that the sidechain technology would slash the spread between the prices in exchanges.
Blockstream and Crypto Garage already have a BTC-USD derivative agreement, a “Discreet Log Contracts,” pegged on the P2P technology. The contract allows the two parties to jointly work on scalability and privacy while making Oracles smart contracts more trustless.
Ethfinex Trustless, a hybrid, Bitfinex-owned exchange, recently rolled out their atomic swap-enabled OTC trading service. The service, launched in June, incorporates atomic swaps on all Over-the-Counter transactions at the exchange.
Meanwhile, several top-ranking exchanges, including BitMEX, are considering using the sidechain technology to cut transaction costs in BTC trades. Japan is also mulling on the idea of employing technology in their Blockchain systems. With all these applications and other yet-to-be-revealed plans, it remains to be seen whether Liquid Network will end up being a standard for crypto transfers.