Liquidity is understood in the economic sphere as the ability of an asset to become money in the short term without the need to reduce the price. When you say that a market is liquid means that in that market many transactions are made and therefore it will be easy to exchange assets of that market for money.
We must also understand that the speed with which the exchange of an asset is handled is called, because it marks the speed with which an asset can be sold or exchanged for another asset. The more liquid a quicker asset is, we can sell it and the less risk we lose when selling it, it offers security. Cash is the most liquid asset of all, since it is easily exchangeable for other assets at any time.
Understanding these concepts we can visualize in a simpler way the problem that has the blockchain when exchanging assets within their structures, many of these chains were born without thinking that they would collapse to have many users so quickly and exponentially, their speeds transactions are falling short, they are limiting a market that requests transfer speed with the security that is needed in this type of case
For this reason, liquidity Network was born, which offers a platform born in the blockchain of ethereum with various tools to facilitate the trading of assets and their derivatives, using a dumbbell (The Liquidity Hub NO-CUST and The Revive) that work for offer cryptographic solutions that unify the market
The liquidity Hub NO-CUST:
The main problem that has arisen next to the blockchain is the transaction capacity that any existing chain can offer, the creation and validation of data that is needed for a simple transaction is high, every time you need to move an asset you create some data that need to be processed to validate the transfer, it may not look very tedious but if we multiply it now by the millions of users that can use a blockcahin then we have the famous bottleneck
Many blockcahin are looking for a solution to this type of problems, the scalability is affected in a very drastic way, millions of people with active prisoners or waiting to be validated a transfer around the world, the problem is big and record, the speed of asset exchanges is paramount if we want evolutions that point to the blockchain
No more custody !!
The traffic of assets and transactions in the normal economy is not a problem, the data processing in a centralized way creates a network that is very fast at the moment of creating instantaneous transactions, this type of data handling to validate information is the dream of any blockchain, then an innovative idea is created to unite the form of centralized data management but using part of the blockcahin technology
Validating data outside the blockcain but for the use of these in the cryptographic platform offers to reach the point that the number of transactions per second will only depend on the latency of the internet and the bandwidth, no more bottle neck to validate data, This creates real liquidity in a market
Apart from that the cost for an asset transaction goes down in a positive way by not needing the slow and expensive validation that most blockchain use
The Revive:
Forming the perfect platform dumbbell comes The Revive, which is a first level algorithm that allows the different hubs to rebalance their payment channels out of the chain.
Due to the way in which the data is worked using a platform outside the blockchain, the working time of the data is streamlined, the cost of work is minimized and the scalability problems are eliminated, reaching the end of the bottle necks
The type of transactions that are carried out can be between two users or between several users, so the validation work whatever the case will always have the fast speed that is desired
Two-party transactions:
It opens a channel for the interaction of assets between two users in order to validate data quickly and safely, these are divided into:
Unidirectional: it is a one-way channel where one user is the depositor and the other receives
Bidirectional: it is a two-way channel where both users can deposit and receive
Paid payments: channel that is opened between two users that are not known, which prioritizes the search for routes, maintenance of channels, security of transactions and balancing of congestion.
Payment centers of 2 parts: with the benefits of the other types of channels this payment center is used when a group of people participate in a direct transfer of funds.
Payment centers N-Party
Using this tool, we seek to speed up the time in which the transaction and validation information is processed, the data is processed outside the blockchain to give a faster response, the bottleneck is eliminated and real liquidity is generated in a market, the being able to generate a faster response guarantees the scalability of the platform, it ensures that the assets are always in the hands of the users and are not retained in any server, the latter is only used to validate information in a secure manner, while the server calculates the transactions, the user retains the funds, so the funds of the users in the payment center are not compromised
Let's talk about the benefits:
Many of us use the blockchain and we suffer from the lack of speed when moving an asset, people do not know about computer science or programming in the blockchain, but if they suffer the problem, if you want to know more technical data visit https: // liquidity .network /
If we want to understand more easily the solution offered by liquidity is to have a server external to the blockchain where the necessary data for a transaction is analyzed, through an intelligent contract you can create a transaction with any user, this contract uses a series of data that are analyzed in the external server and then with that resulting data the contract is executed and finalized, so the response time for a transaction is reduced only to the quality of the internet that is had at that moment
. no more excessive transaction of the chain of blocks: because the miner does not exist in this type of transaction the cost of validation is much lower
. Scalable: the working speed of the data is high, only the quality of the internet you use limits you
. speed: Liquidity network centers can rebalance their channels outside the chain
Guaranteed security: REVIVE is peer-reviewed and published in ACM CCS 2017
More liquid market: millions of transactions per second without affecting the speed of a transfer between two or more users
Liquidity and interface network applications
To be able to use the platform in different ways, applications are created that the user has available which can be used in different mobile devices, they are created keeping in mind the importance of having a friendly and intuitive user interface for easier management and the safest and most comfortable navigation within the platform
The Liquidity network portfolio is available for the two devices that are common in everyone's daily life, they are available to download both on your PC and on your mobile device, the latter can be run on the IOS and Android operating system
Case of use:
A cosmetics company makes its official launch in Madrid, knows that young people are in blockchain technology, this company wants to reach these young women of the cryptographic market, the company creates a platform to blockcahin which allows to obtain a token which can be used in this platform to buy any of your items, as initial offer creates a series of events and tasks that your followers must create to get touch, if you share the company's website earns a series of token, if you create a tweet or use your Facebook as a promotion wins, and so on, each person wins a series of points, at the end the company must distribute the offered tokens
Using the liquidity platform the company can generate an intelligent contract with the transaction data for the hundreds of winning users, this data goes to an external server which processes the information almost instantaneously and thus offers the data needed for the contract to to run immediately, each user receives the token offered quickly, no bottlenecks are created and everyone is happy and happy
MORE INFORMATION ABOUT THE PLATFORM:
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article written by @aerossone for the @originalwork writing contest that is sponsored by liquidity
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