StableCoin Tether Officially Launches on Liquid Sidechain by BlockStream
While it's become widely known and comparatively controversial, Tether has since announced that it will be launching on the Layer-2 solution known as Liquid Network developed by Blockstream.
The announcement was made this week, with the token itself having been made available on the Liquid Bitcoin Sidechain network.
Having officially launched last October, Liquid Sidechain allows Bitcoin traders and companies that use Tether to have access to interesting and unique new features otherwise unavailable through the company's original platform.
Blockstream's Liquid solution was initially designed to serve primarily as a layer 2 solution on . the Bitcoin blockchain. Thereby offering a greater degree of ability for users to complete transactions in large volumes at a much higher speed. When it was initially launched, a number of industry firms, which included the sister organization alongside Tether (Bitfinex), have already officially signed up in order to help and manage the volumes of transactions with the network through the use of its own Bitcoin-pegged token L-BTC (Liquid Bitcoin).
With the inclusion of Tether into the network, it will now be possible for users to conduct atomic swaps between both Liquid Bitcoin and Liquid Tether. The main advantage to this is that it will offer a much lower risk when it comes to counterparty trading. Which is exceptionally valuable for those conducting Over the Counter (OTC) trading.
Along with this, Liquid offers a much faster block time, allowing traders to quickly complete transfers of fiat between associated exchanges, paving the way for much more efficient trades.
As far as the process of storing digital assets goes, Blockstream's associated digital wallet offering – Blockstream Green – will allow its users to store Liquid USDT whenever it's idle and move them to dedicated exchanges whenever the user is trading. Allowing users to safely store them on the main chain whenever idle, before moving it over to a side chain whenever transactions want to be made.
The wallet app itself went through an interesting amount of development over the last year. Having undergone a significant revamp back in March 2019 in order to offer a range of new features to emphasize efficiency and improved security, such as multi-signature.
Having previously functioned as a Bitcoin focused digital wallet, Blockstream Green was further updated early last month in order to support liquid bitcoin and other assets.
According to the company's press release, the team also suggested that Trezor hardware wallets will soon have the ability to support these digital assets.
“It has been a natural decision to deploy Tether on the Liquid Network given the fantastic work that the Blockstream team is achieving,”
said Paolo Ardoino, CTO at Tether and Bitfinex.
“Issuing stablecoins, and various other digital assets under one blockchain platform makes a lot of sense and greatly improves industry efficiency whilst allowing traders to manage all their assets from a single wallet application.”
If we were to look further forward into the future, the companies argue. that there is a significant potential for a launch of the lightning network. Specifically for Tether, which means that “instant, low-cost stablecoin payments” could be on the way to users very soon! To put that into perspective, lightning can already be put to use in order to make Liquid-based payment channels.
With this launch, Liquid USDT will eventually be supported for both withdrawals and deposits on Bitfinex, while companies that operate as members of the Liquid solution will also be working to add the token to their line-ups. This is according to a press release from this week.
Samson Mow, CSO at Blockstream, said:
“The addition of Tether is a major milestone in increasing the utility of the Liquid Network. In combination with the latest developments in the Liquid ecosystem, traders can now achieve some really cool things, such as OTC atomic swaps, super-fast arbitrage between exchanges, and easy Tether custody with Blockstream Green.”
The longer-term goal of Tether has been to peg its virtual token's value (the USDT) to the corresponding value of the US Dollar. One of the firm's legal team recently gave public acknowledgment to the fact that the stablecoin was only backed by fiat equivalents by a total of 74 percent as of reports from April this year.
As of right now, both Tether and Bitfinex are undergoing a major legal dispute with the Attorney General of New York.