LIQUIDITY NETWORK ARCHITECTURE AND ADVANTAGES OF NOVEL INOVATIONS TO BLOCKCHAIN AND DECENTRALIZED ECOSYSTEMS

in #crypto6 years ago (edited)

Background of Problems

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The evolution of several types of cryptocurrencies brought about a new form of trade and marketplace – Cryptocurrency Exchanges, which in turn has birthed so many innovative solutions in the blockchain industry. The two major types being Centralized and Decentralized Crypto exchanges.
Unlike traditional currency and value exchanges, Centralized crypto exchanges ensures that transactions are carried out speedily between users and the financial institutions with high volume, but have a very big issue – Users have no control over their funds as it is managed by the operators.
Just like centralized exchanges, decentralized exchanges ensures that users have total control of their funds by using private keys to lock their funds, but the system suffers from slow trading speed and low volume.
The blockchain ecosystem is a solution, a solution to every problem or that can be modified to solve every problem, there is need for a blockchain solution that effectively combines the advantages of both centralized and decentralized exchanges in one place, with none of their problems affecting the system.

The Solution, Liquidity Network


Liquidity Network is an ecosystem that combines the benefits of decentralized exchanges with that of centralized exchanges to create a platform where users can be ensured of security and personal control over their funds and still enjoy fast transactions with high volume.
Liquidity Network is a Non-custodian financial exchange service offering a secure, cost effective, fast and transparent transactions, encouraging blockchain adoption using a blend of two Novel innovations: Liquidity Hub NO CUST and REVIVE.

Source: Liquidity Network WhitePaper, pp 3,4

Liquidity Network Architecture:



Liquidity Network Architecture is made of a collaboration of several Off-chain Hubs, offering users ability to make transactions between members of the same hub, instantly and with low cost off-chain, while enjoying blockchain security of funds. In this case all members of the hub are able to see the funds of others, for effective decentralization, but only the fund owner can make transfers as the funds are secured by the blockchain.
Liquidity Network Architecture have several features making it better in comparison to exchange services and corroborates the professionalism mantra of the Liquidity Network , some of its special features includes:

  1. Funds are controlled by users using private keys
  2. Blockchain security ensures that no funds can be stolen
  3. Non-custodian off-chain swaps between members of the same hub and among different hubs
  4. Free and instant channel balancing by REVIVE
  5. Ease of use and speed of transactions.

How suited is Liquidity Network to allow true decentralization and eficient transfer of funds?

Liquidity Network is ensuring effective decentralization by ensuring that:

  1. All users have total control of their assets at all time and have the final decisions as to what to do with their funds.
  2. Inter-connectivity of hubs will ensure that their is efficient re-balancing of channels and members have a wide range of products to exchange with and
  3. Users can choose to move from one hub to another depending on the hubs owners preferences.

Videos

Stanford BPASE Talk

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