The Liquid Network, which was developed by the Blockstream blockchain studio, is a second-layer settlement solution on top of the Bitcoin (BTC) network. It utilizes Liquid Bitcoins (L-BTC), assets that are verifiable and backed 1:1 by Bitcoin (BTC).
Active Trading with Low Fees
Mr. Back announced the utilization of Liquid Bitcoin is inevitable for active traders. He also highlighted that Bitcoin (BTC) transactions are finalized in two minutes for $0.01-0.02 with Liquid.
if you are actively trading and don't like high fees, use exchanges with 🌊@liquid_btc integration, or complain to an exchange that doesn't. pay 1-2c to clear in 2mins final, while others are paying 50c-$2.50 for 1hr+ transfer.— Adam Back (@adam3us) May 23, 2020
At the same time, transactions within the Bitcoin (BTC) network can be charged with fees of $2.5 and confirmation wait periods of 1+ hour(s).
This is why traders should use Bitcoin (BTC) exchanges that have already integrated Liquid solutions. Mr. Back also asked Bitcoin (BTC) owners to complain to the platforms that hesitant to implement it.
He highlighted that using Liquid is of particular importance for margin traders since they can be liquidated while waiting for slow or transactions that are stuck.
Liquid Adoption is on the March
Adam Back attached a full list of exchanges and trading platforms that support Liquid transactions. Many of them have not only implemented L-BTC, but also L-BCH and USDt, the Liquid-based version of the most adopted stablecoin.
see https://t.co/OOQNMsVtjg for integrations. it's missing @gopax_kr needs updating since https://t.co/udHO0nvKhq for wallets suggest use https://t.co/Xh2hd72PIG also note @ledger hardware wallet support for 🌊@liquid_btc on android. pic.twitter.com/Q0lJ3ganL1— Adam Back (@adam3us) May 23, 2020
Bitfinex, Hodl Hodl, and Bisq are the most popular trading environments on this list. Mr. Back added that the crypto hardware wallets by Ledger support Liquid as well.
He invited all ecosystems to implement Liquid.
It is also worth noting that Liquid outperformed the Lightning Network two months ago, the first mass-adopted Bitcoin (BTC) L2 scalability solution, in terms of network capacity.