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Get Ready for Faster and Confidential Transactions By Using the Liquid Network!

Paymium
Paymium

The longest standing Bitcoin exchange facilitating crypto adoption in Europe since 2011.

Dear Paymium users,

On the 29th of July 2020, Paymium became member of the Liquid Federation led by Blockstream along with 7 other companies. These new memberships bring the Liquid Federation to a total of 53 members, which includes cryptocurrency exchanges, trading desks, infrastructure providers, and now even some Bitcoin gaming companies! You can find the full list of Liquid members here.

Liquid Bitcoin (L-BTC) basically allows you to transfer your bitcoins confidentially from one platform to another 10x faster than on the Bitcoin blockchain.

What is Liquid?

Liquid is a sidechain - an emerging mechanism that allows tokens and other digital assets from one blockchain to be securely used in another one - of the Bitcoin blockchain. The Liquid sidechain has different features, capabilities, and benefits than the BTC blockchain.

The Liquid Network was built to address the particular needs of traders who use exchanges. It enables the rapid, confidential, and secure transfer of funds between participants, providing a solution to the inherent problem of delayed transaction finality on the Bitcoin network.

Liquid’s sidechain is built on the Elements codebase and uses Blockstream’s Strong Federation technology to support the 1-to-1 exchange of bitcoin between chains. It means that you can peg your BTC and get the exact same amount in L-BTC (Liquid Bitcoin) on the Liquid sidechain.

What are the benefits of Liquid?

Faster Trading - Near instant bitcoin transfers between exchanges allow users to take advantage of arbitrage opportunities like never before.

Enhanced Efficiency - Market makers can improve their capital efficiency by reducing balances held across multiple exchanges.

Better Privacy - Liquid supports Confidential Transactions for bitcoin amounts as they are transferred between users in the system, which protects users from exposure.

Superb Reliability - Built using the battle-tested Bitcoin codebase, Liquid software is highly reliable. Also, since Liquid uses signed blocks instead of mining, blocks are targeted to be 1 minute apart instead of the more variable 10 minute blocks in Bitcoin.

Who controls Liquid?

Liquid is operated by its members. Blockstream has no control over the network and only serves as a technology provider to the network members. Liquid can continue indefinitely even if Blockstream ceased to exist or if the members no longer wanted to receive support from Blockstream.

Where can I get L-BTC?

Currently at various other Liquid members’ venues but we especially like the ease-of-use of Liquidity.io. No fees for amount inferior to 0.01 BTC.

How can I use L-BTC on Paymium?

You can generate your L-BTC address on the Deposit page. For better convenience, this address is permanent (while your BTC address is changing every 7 days). Once you deposited L-BTC on Paymium, you will see your BTC balance credited.

Can I withdraw L-BTC from Paymium?

Not yet but soon! Now that we became members of the Liquid federation, we are able to start implementing the peg-out function (only members get the rights to do it) a key function for enabling L-BTC withdrawals. As of today, you can only deposit L-BTC and trade the equivalent of in BTC, on our BTC/EUR market.

Which wallet supports L-BTC?

We only recommend the Green wallet made by Blockstream for now. You can also check out the services of the other members of the Liquid Federation.

What’s next?

L-BTC is just for starters. The Liquid sidechain also allows anyone to build smart-contracts and issues assets relying on the Bitcoin blockchain, similar to ERC-20 on the Ethereum blockchain.

Stay tuned!

Paymium
Paymium

The longest standing Bitcoin exchange facilitating crypto adoption in Europe since 2011.

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