Another project launches a test network that offers a solution for scaling Etherium. Liquidity Network, which was launched on March 2, along with Raiden Network is a new project that allows you to display transactions from Etherium blockchain service in the payment channels. As a result, it can allow the network to get more widespread.
Liquidity Network offers a solution alike Bitcoin's Lightning Network, which is more well known. The project aims to give users of the blockchains the opportunity to make bilateral transactions without having to pay for moving coins in the blockchain itself. Simply put, users pay only for opening and closing payment channels without having to pay a commission on the main network.
Although Raiden is ahead of other similar concepts, it is still far from the actual launch. Given that Etherium network sometimes does not cope with the load, we can confidently say that news about any decisions in this area will be received positively creating high anticipation.
Is noteworthy that this solution uses Revive technology, which was introduced last year and promises to provide a cheaper and more efficient way to set up offline transactions.
Co-founder Liquidity Network and associate professor of Royal College London Arthur Gervais told CoinDesk:
"We created a payment hub that allows you to make bilateral payments within an arbitrarily large group of people. We believe this is important for the development of the Etherium."
According to Gervais, an uncompleted alpha version is now available in the Ropsten testnet, which, he hopes, will attract the first testers. Like Raiden, Liquidity Network will issue a token to finance development, although it is still at the pre-sale stage and is not needed for the network.
Liquidity Network also introduces what might be the first Etherium test wallet, capable of carrying out such transactions.
One of the key innovations of the Liquidity Network is the ability for hub members to pay any other member of the fund with the allocated funds. Contrary to traditional payment channels, the funds are therefore not locked between two individuals, but rather instantly available to all members of a hub. While providing new advantages, a payment hub inherits the advantages of traditional payment channels and can be also augmented to a payment hub network, effectively simplifying routing significantly, while scaling substantially and reducing overall off-chain costs.
While this wallet works only in the test environment, it's still too early to talk about practical implementation in the main network.