Blockstream’s L-BTC can now be self-managed using ‘Liquid full node binaries’

A blockchain technology company, Blockstream recently announced the release of the Liquid full node binaries and its source code which is currently available on GitHub. With the help of Liquid full node binaries, users can join Blockstream’s Liquid network.

Liquid is an inter-exchange settlement network [sidechain] which is responsible for faster Bitcoin transactions and the issuance of digital assets by linking cryptocurrency exchanges and other financial institutions.

Blockstream’s tweet stated:

“We are excited to announce the release of the Liquid full node binaries & source code! Now any user can join the #P2P #LiquidNetwork by operating a full node, in order to trustlessly use the #sidechain just like with the #Bitcoin #blockchain.”

These full node binaries will let the users self-validate the chain like Bitcoin network. It also includes command-line utilities such as liquidd and liquid-cli. This enables users to self-manage L-BTC [Liquid BTC] and other Liquid Assets.

L-BTC is the native asset of Liquid network which is backed by Bitcoin’s blockchain through a mechanism called two-way peg. This process allows the bidirectional transfer of assets between the parent chain and the sidechain at a fixed exchange rate by reusing the existing Bitcoin [BTC].

According to Blockstream, using Liquid’s Issued Asset technology you can quickly tokenize traditional currencies, real-world assets, and other cryptocurrencies, and transact them securely with other members of the network.

Confidential Transactions and Confidential assets are the two main privacy features of Liquid when compared to Bitcoin. Users can now utilize them with the help of Liquid full node binaries.

Ash, a Bitcoin proponent said:

“Amazing work by Blockstream: fast federated system, complement to Lightning micropayments, potential for tokenising other assets like fiat & gold in the future, all anchored on bitcoins security. Doesn’t have loans etc so likely more competition for BAKKT than ethereum”

Further, Adam Back, the Co-Founder of Blockstream had a discussion on the new technology.

While discussing about the self-validation and trustlessness feature of full node binaries, he said:

“In Bitcoin, if miners make invalid blocks the fullnodes ignore them and stay on the most work valid chain. With liquid (today) blocks are signed by an 11of15 multisig, and each functionary cross-checks, and will not sign invalid blocks, that would require functionary modification”

By running a liquid fullnode one would not accept double spent, nor fake liquid assets [created without transfer or not issued by the issuer for the respective asset]. Also, the fullnode would not follow a fork in the chain building on an invalid block., says Adam.

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