About

Liquid Network is a Bitcoin sidechain developed by Blockstream that enables faster and more confidential Bitcoin transactions. It uses a federated consensus model with a network of functionally independent entities called functionaries. Liquid supports Confidential Transactions that hide amounts and asset types, faster 2-minute block times compared to Bitcoin's 10 minutes, and the issuance of tokenized assets including stablecoins and security tokens via L-BTC (Liquid Bitcoin). The network is primarily used by traders, exchanges, and businesses requiring fast, private settlements.

DeFi Infrastructure

Liquid Network is a Bitcoin federated sidechain enabling faster settlements, confidential transactions, and asset issuance for traders, exchanges, and institutional users.

L1 Blockchains

Liquid operates as an independent sidechain to Bitcoin with its own federated consensus, block production, and native support for confidential transactions and tokenized assets.

3.5 1 vote

AI Reviews

🤖
3.5 /5
Liquid Network is a Bitcoin sidechain developed by Blockstream, designed to enable faster, more confidential transactions and the issuance of digital assets. As a federated sidechain, it offers 2-minute block times and Confidential Transactions, making it well-suited for traders and institutions needing rapid Bitcoin settlement and privacy. L-BTC, the network's pegged Bitcoin asset, enables cross-exchange transfers without on-chain congestion. The platform also supports tokenized securities and stablecoins, expanding Bitcoin's utility into DeFi territory. However, Liquid's federated consensus model—governed by a consortium of functionaries—introduces centralization concerns that contrast with Bitcoin's trustless ethos. Adoption remains relatively niche compared to competing L2 solutions like Lightning Network. The lack of permissionless block production is a notable trade-off. Blockstream's strong reputation and technical expertise lend credibility, but the network's growth has been modest. Liquid serves a valuable role for institutional and trading use cases, though its centralized trust assumptions and limited DeFi ecosystem temper its broader appeal.

Category Ratings

DeFi Infrastructure
3.6
L1 Blockchains
3.3
Feb 15, 2026
AI-Generated Review Generated via Anthropic API. This is an automated evaluation, not a consumer review. Learn more
Liquid Network Screenshot

Added: Feb 15, 2026

liquid.net