Transaction capacity of blockchain platforms seems to be the hottest topic right now in the crypto community, as many issues remain unresolved. For instance, transactions are very energy-costly and can be executed at the pathetic speed of 10-15 per second. Certainly, such speed is not enough. Just to compare, Mastercard and Visa are capable of conducting 100,000 operations per second. We already know that Bitcoin is going to tackle this problem with the help of Lightning Network. But about Ethereum? What project is going to upgrade its transaction capacity?
Well, Liquidity.Network might be the answer for both blockchains. Yes, it is aimed at several blockchains at once and offers innovate technological solutions, potentially more advanced than their competitor’s.
According to developers, the competing projects such as Lightning network and Raiden still failed to address the problem of establishing payment channels, which require expensive on-chain transaction. Moreover, the routing on the off-chain network remains too complex. The liquidity network offers Liquidity Hub and REVIVE rebalancing protocol, which provide instant and free payment channels and feature simple routing design.
The second component of the liquidity network is the Liquidity off-chain decentralized exchange. The developers claim that it will be capable of instant atomic off-chain swaps without holding user funds and will be able to operate under blockchain congestion and perform transactions instantaneously.
The fact the project already has a running MVP is a huge advantage. The pilot version is compatible with Ethereum and Ehereum classic, NEO and Dfinity are expected a bit later. The team is going to launch official and stable Liquidity.Network already in Q2 2018, and the exchange is going online in Q3 2018.
The team is perhaps the weakest point yet, mainly because only two co-founders have been revealed on the official page. The developers are going to unveil the team members one by one before the ICO starts. One of the co-founders, Arthur Gervais has a Ph.D. in Security and Privacy of Proof of Work Blockchains and Web Privacy. The other co-founder, Rami Khalil is a security software engineer for Gnosis. Despite lack of impressive achievements among the team members, the project was mentioned by Vitalik Buterin, which is a sign of trust. Additionally, the developers managed to involve several VC funds in pre-sale such as DHVC, zk CAPITAL, ZMT, YouBi, which is quite impressive.
LQD token isn’t intended as a general-purpose cryptocurrency, it will be used only by professional users for a range of specific tasks.
In conclusion, the Liquidity.Network offers the most advanced off-chain payment channels. Both Lightning Network or Raiden have a number of disadvantages compared to Liquidity Network. The project hasn’t received much public exposure yet, but it can be a good thing from the point of view of an investor. It looks like the community around the project is going to grow a lot bigger by the time the ICO launches on June 14th.
All LiquidityNetwork investment details are available on our site.