It appears that the Bitcoin sidechain Liquid is back in action amidst the frenzy of the ordinal “Bitcoin Bloodbath”. Liquid is a sidechain built on top of the Bitcoin blockchain and is designed to allow for faster processing of transactions by reducing latency.
The Bitcoin Bloodbath was an event that saw Bitcoin’s valuation drop from around $60,000 to around $10,000 in a matter of days. This created a lot of panic amongst investors and traders alike, leading to them attempting to sell their holdings fast.
In the middle of this, Liquid was able to keep up with the extreme load by processing all transactions within minutes. This was a crucial feature that allowed Liquid users the opportunity to get out of a volatile market quickly and without the added burden of transaction fees.
Furthermore, Liquid also implemented technologies such as the Lightning Network that allowed users to send Bitcoin without having to wait for block confirmations. This was another great feature that helped users protect their funds in an uncertain market.
Liquid has since gone on to become widely used, and is now actively processing more than $300 million daily and accumulating more than 30,000 daily active users. It appears that the sidechain has lived up to its purpose and is helping many to navigate a highly volatile market.
