Glossary
Liquid Network
A federated Bitcoin sidechain run by Blockstream and a member group, offering faster settlement, confidential transactions, and tokenized asset issuance.
Liquid is a federated sidechain to Bitcoin operated by a consortium of exchanges and infrastructure providers. BTC moves into Liquid via a federated peg, where it becomes L-BTC and can be transferred with faster confirmations, confidential transactions (amounts hidden), and the issuance of other assets (Tether on Liquid, security tokens).
The federation is the trust model: a quorum of the functionaries must cooperate to redeem L-BTC for BTC. The network primarily serves exchanges and large traders moving Bitcoin between venues.