Bitcoin Sidechain Liquid Experiencing Revival Amid High Network Congestion
The Liquid Network, a scaling solution for Bitcoin transactions, is seeing a surge in activity as the Bitcoin network faces high congestion and fees. Data from mempool.space shows that the Liquid Network has witnessed its highest transaction volumes in years, with several transactions appearing in almost every block. This renewed interest has caught the attention of executives and founders at Blockstream, the company behind the network. The rise in activity is attributed to Boltz, a non-custodial Bitcoin exchange that allows users to redeem BTC on the lightning network for LBTC, and vice versa. This alternative scaling solution provides faster payments while bypassing high base-layer fees.
Increased Adoption and Interest in Liquid Network
Bolt Bitcoin founder Anita Posch has recommended using Boltz in high fee environments and educating users on how to use the Liquid Network. Additionally, CEO Francis Pouliot of Bull Bitcoin has reported a sharp increase in user interest for LBTC at their exchange. The resurgence of interest is also linked to Ordinals, a protocol that enables users to mint NFTs and tokens on Bitcoin. However, this capability has led to blockchain bloat and some protestors labeling it as spam. OCEAN, a Bitcoin mining pool funded by Jack Dorsey, has chosen to filter out Ordinals transactions from the blocks it mines.
Hot Take: Bitcoin Sidechain Liquid Makes a Comeback Amidst Ordinals Frenzy
The Liquid Network’s recent revival showcases the need for scalable solutions amidst high network congestion on the Bitcoin blockchain. As transaction fees rise and base-layer solutions become impractical for small payments, alternative options like the Liquid Network offer faster and cheaper transactions. The surge in activity is driven by platforms like Boltz and increased interest from users and exchanges like Bull Bitcoin. While the rise in blockchain bloat caused by Ordinals has sparked controversy, it highlights the demand for innovation and adoption of alternative BTC technologies. The Liquid Network’s resurgence demonstrates its potential as a viable scaling solution for Bitcoin.
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