Victor Ugochukwu · Dec 14, 2020 . 5min read
Blockstream’s Liquid Federation strengthens ties with 8 new members
San Francisco based startup Blockstream, and its Liquid sidechain governing body Liquid Federation, now boasts of close to 500 members.
By Victor Ugochukwu · Aug 28, 2020 . 5min read
San Francisco based startup Blockstream, and its Liquid sidechain governing body Liquid Federation, add eight new more members.
Blockstream announced this last month on its website, with some new industry names making a list. Among the latest Liquid Federation members includes CoinShares, Condensat, INX, JST Capital, Paymium, Petrushev Capital, Sevenlabs, and Satoshis Games.
According to the Blockstream post, this new addition of members represents a growing interest in its flagship product: Liquid Network. The Bitcoin sidechain went live in 2018 after more than three years of development. Until now, Liquid Network has over 2,400 L-BTC locked in its contract with more than close to 500 members.
More importantly for Blockstream as it welcomes new members in Liquid federation is that,
the security of the Liquid Network also improves—decision making over the development of the network becomes more distributed
More growth also means more members integrate Liquid sidechain.
Many of its newest members wasted no time integrating Liquid sidechain. Others who are yet to incorporate plan on doing that as soon as they are fully ready to do so. Notable among them is CoinShares, a leading provider of institutional-grade investment products and services for digital asset investors. The pioneer of Bitcoin Exchange Products (ETP) plans on using Liquid as transport rails for its digital asset trading between exchanges.
Another one is Condensat Technologies, a provider of white-label asset management and core-banking infrastructure. It will utilize Liquid’s sidechain as a currency and asset reserve system for custodian core banking software. Condensat will also use Liquid as a verification system to allow easy and cheap auditability.
However, the Liquid sidechain, even though pushing for full Bitcoin adoption, comes with its risks. For example, Bitcoin Dev and Summa founder, James Prestwich, discovered a flaw in Liquid Network’s security in June. Apparently, Liquid Network’s moderators temporarily seized Bitcoins stored in it. But with more members comes more decentralization. And perhaps flaws like this would be reduced to its barest minimum with more members added to Liquid federation.
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