BTC godfather comes to Taiwan! Adam Back appeared in the Legislative Yuan, and talked freely about the current development of the two major tracks.

Image Source: Chain News

Dr. Adam Back, a cryptographer, accepted an invitation from Legislator Ke to hold a special seminar at the Legislative Yuan today on the topic of "Value-added Applications of Virtual Currency: Promoting Digital Economy, Information Security Cryptography, and Financial Technology - Taking BTC Layer2 as an Example," during which Dr. Back also introduced the current development and practical cases of the Liquid Network to the participants.

Who is Adam Back

Adam Back is a British cryptographer who invented Hashcash before the advent of Bitcoin as a Proof of Work system to prevent spam. It was referenced by Satoshi Nakamoto and used as the basis for the BTC blockchain. As a result, Adam Back is highly respected in the BTC ecosystem and the crypto community, and is known as the 'Father of BTC'.

In 2014, Dr. Back founded the blockchain technology company Blockstream and served as CEO. The products launched by Blockstream include:

Sidechain Liquid Network of BTC ecosystem

BTC Wallet Service Blockstream Green

BTC Development Kit Greenlight

There are also other innovative technologies such as Stable Coin and RWA, aimed at improving the development speed and adoption of the BTC ecosystem.

Image source: Adam Back at the Legislative Yuan forum silhouette

Liquid Network

The first representative BTCSidechain

At the beginning of the lecture, Dr. Back introduced the Liquid Network to the participants. The network is a Consortium Blockchain led by Blockstream, with approximately 70 members currently responsible for maintaining the network, including some Financial Institution and startups.

The goal of the Liquid Network is to achieve faster and more confidential digital asset issuance to enhance the functionality of the BTC network. The native asset of the Liquid Network is BTC (Liquid BTC). As an early sidechain driving the development of the BTC ecosystem, it leads to more BTC sidechain projects, including Stacks, RootStocks, Drivechain, and other solutions.

Liquid Network and Lightning Network

Liquid Network and Lightning Network were early and parallel developments in Bitcoin Layer2. Dr. Back said that the former now focuses more on retail applications, optimizing for the retail industry, allowing merchants to quickly receive small payments from customers at a low cost.

The Liquid Network focuses on financial transactions, providing tools for traders, financial institutions, and exchanges who want to transfer large amounts of BTC or other tokens quickly and privately. It supports the TradFi framework and regulations, providing infrastructure and services for tokenization of assets.

The usage scenarios of Liquid Network and Lightning Network are different and are more complementary than competitive. The former focuses on the ability of retail payments, while the latter has a lower threshold for tokenization of drop assets.

Actual Adoption Case

In this legislative meeting, Dr. Back mainly proposed three projects that have been implemented on the Liquid Network, namely:

MIFIEL: Developed by a Mexican Financial Technology company on Liquid, digitizing the issuance of promissory notes to replace existing paper-based promissory notes, in response to the flourishing local financial market for small-denomination promissory notes. By digitizing and putting them on the chain, security can be enhanced. Currently, there is approximately $200 million Liquidity in circulation for the promissory notes.

JPYS: This asset is a stablecoin in Japanese Yen, officially partnered with the Bank of Japan. It is used for inter-institutional clearing, and platform trading does not involve regular users.

CSMSTR: The Token is a micro-strategy stock Token issued by STOKR, a virtual asset service provider from Luxembourg, providing a fast and 24/7 trading market under regulatory conditions.

In addition, Dr. Back also pointed out that there are potential applications of the Liquid Network, including bond issuance, tokenization of US Treasury bonds, token funds, alternative assets, tokenization of computing power contracts, sovereign debt, etc.

[Disclaimer] There are risks in the market, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, viewpoints, or conclusions in this article are applicable to their specific circumstances. Investing based on this is at your own risk.

This article is authorized for reprint from: "Chain News"

The 'Father of Bitcoin' comes to Taiwan! Adam Back appears at the Legislative Yuan to discuss the current development of the two major tracks. This article was first published on 'encryption city'.