Blockstream explains that Liquid is a federated sidechain implementation. It utilizes a two-layer protocol similar to Lightning Network. It is an inter-exchange settlement network that tackles with the problem of slow Bitcoin transfers. Through Liquid, Bitcoin can be moved in less than two minutes.
According to its FAQ page, the benefits of Liquid Network are faster trading, enhanced efficiency, better privacy, and superb reliability.
Providers of Liquidity
Samson Mow, CSO of Blockstream, says the chief providers of liquidity will be members and exchanges who are part of Liquid. Among the 23 exchanges included in the line-up are Zaif, XBTO, Unocoin, SIX Digital Exchange, The Rock Trading, OKCoin, GOPAX, BitMEX, Bitfinex, and Bitbank.
Liquid has aspirations to grow its membership and expand its services. The services the project hopes to provide include: a Ledger and Trezor supported hardware wallet, a mobile wallet, and a GreenAddress wallet integration.