Blockstream has announced its first Bitcoin sidechain called Liquid, set to be launched in early 2016. The sidechain will serve payment processors and brokerages among a dozen other major traders and licensed exchanges with instantaneous and secure transactions.
Months after releasing the source code of Sidechain Elements – a codebase for developers to experiment and build sidechains, Blockstream, a startup comprising of a group of core Bitcoin developers has announced the first commercial application of sidechain technology with Liquid.
Blockstream, having raised $21 million in venture capital late last year is gearing to deploy Liquid to be used among exchanges, wallets and other Bitcoin service providers.
The aim is to reduce Interchange Settlement Lag (ISL) experienced during transactions when bitcoin is moved between accounts to improve upon interchange liquidity while maintaining decentralization and security.
In a statement, Blockstream CEO Austin Hill counted a number of initial launch partners who are also some of the biggest bitcoin exchanges and services around. They include Bitfinex, Kraken, BTCC, Unocoin and Xapo. Other exchanges and services that wish to be a part of the sidechain will, like the above startups, be charged a monthly