The Liquid network is
a federated sidechain designed to provide new features and benefits to exchanges, users, and businesses by leveraging a sidechain which will process transactions more quickly and efficiently than the main Bitcoin blockchain.
For example, to increase the privacy of transactions and to implement Smart Contract applications, Rootstock and Blockstream want to use closed and
federated sidechains to overcome limitations of public blockchains.
Not exact matches
Where both Liquid and RSK for now apply a «
federated» model, where the
sidechain is secured by a group of semi-trusted «gatekeepers,» drivechains would be secured by bitcoin miners.
Although Blockstream has talked about the
federated peg system before in their first
sidechains paper, this new release explores the subject and presents a system that allows all participants to be economically incentivized to operate in the best interest of the network, ensuring that both the generation of new blocks and the withdrawal from the
sidechain runs smoothly.
With today's publication of Strong Federations: An Interoperable Blockchain Solution to Centralized Third Party Risks, we share the improvements we have made to the
federated peg that was briefly discussed in the original
sidechains paper.