Liquidity Network and Ethereum [ETH] – Scalability has been a prolonged issue surrounding Ethereum [ETH] for almost a year. Back in November at the Devcon3 conference in Cancun, it was the primary topic of discussion, but the weekend ended with no clear solution. There have been various projects to emerge that have the potential to solve the issue, but none have succeeded – yet.
Vitalik Buterin, Ethereum’s co-founder has some serious clout when it comes to the blockchain space and just recently, he endorsed a new project that offers instant off-chain microtransactions.
Looking forward to seeing this go live! https://t.co/gRRSSjyFPZ
— Vitalik “Not giving away ETH” Buterin (@VitalikButerin) May 3, 2018
First and second generational blockchain, such as Bitcoin (BTC) and Ethereum (ETH), only have the capacity to process ten’s of transactions per second. Other mainstream payment process systems, such as Mastercard or Visa, have the capacity to process thousands of transactions a second. Another issue plaguing the space is the transaction fees that are attached to every payment made on the system. High transaction fees, due to a massive amount of transactions flooding the system, make micropayments in cryptocurrency unworkable.
In Steps in Liquidity Network
Arthur Gervais, co-founder of Liquidity Network, told CryptoCurrencyNews:
“Liquidity.Network solves three of the biggest technical deficiencies of Lightning/Raiden. The first being that Liquidity.Network is completely free for regular users, second, Liquidity.Network has easy routing at the core of its technical design, and finally users will no longer have to have rigid locked up collateral that cannot be used with other participants.”
When speaking to both the founders in an exclusive interview, they expressed the importance of ‘off-chain’ payments. Does paying for a coffee really need to be recorded on the Ethereum blockchain? They seem to think not – let me explain.
The Liquidity.Network’s off-chain platform enables users to transact ETH with zero gas fees and almost instantly. To keep Liquidity.Network from congesting the main network, it consists of a series of interconnected payment hubs. With all these various hubs, the network is able to accommodate millions of users a second who can all interact with one another through their allocated funds.
Think of these allocated funds sort of like loading money onto a Starbucks app, to pay for coffee every day. You’ve already accounted for the money to be spent, so do you need to track/account for every transaction you make every day on the app? No. In simple terms, this is exactly how Liquidity Network works. Like a gift card or a preloaded debit card.
LiquidityNetwork launched their mobile app at the recent EDCON in Toronto. While it’s only still in its private beta-stage, the mobile app promises to make sending money as easy as sending a text message. Its main net is set to launch in June of this year and is compatible with both iOS and Android. Liquidity Network is free to join and has zero fees for regular users. Transaction fees are flexible can be paid by the sender or receiver.
No wonder Vitalik has endorsed them, this is a project you want to keep your eyes on.
Featured Image: Portal