Share this article
It's Happening? Blockstream Opens 'Liquid' Sidechain in Beta
Bitcoin startup Blockstream’s first sidechain, dubbed Liquid, is launching in beta on the live bitcoin network.
Updated Sep 11, 2021, 1:22 p.m. Published May 22, 2017, 12:00 p.m.
Bitcoin startup Blockstream's first sidechain, dubbed Liquid, is now launching in beta.
The release marks the first time that the sidechain (announced in late 2015) will move out of the testing sphere and onto the real bitcoin network. Blockstream is demoing the sidechain at CoinDesk's Consensus 2017 conference this week.
STORY CONTINUES BELOW
Liquid is a private blockchain. This means that, similar to other private blockchains being built today, there is some control over who can send transactions. This sets it apart from open systems, such as bitcoin or ethereum, that any user can join.
However, instead of being a self-contained system like some other private blockchains, Liquid is designed as a layer that sits on top of the bitcoin blockchain. The movement of bitcoin is basically on another layer within the sidechain, but users and companies have control over their funds since they're tied to the bitcoin asset.
The main idea behind Liquid is to help companies, such as exchanges, move big sums of bitcoin around – and quickly. More than 10 companies, including major bitcoin exchanges, have been testing the technology in production since April.
Blockstream CSO Samson Mow told CoinDesk:
"With our updated roadmap, I think the value proposition to exchanges is immense: instant transactions, improved privacy, and the ability allow their users to hold Liquid funds off exchange."
He added that Blockstream is talking with other bitcoin exchanges that are interested in signing up.
Further, some amount of privacy is built into Liquid by the use of 'confidential transactions' – another technique pioneered by Blockstream developers. In this case, balances are shielded from non-participants in a transaction.
Of course, most bitcoin users are more interested in the trustless version of the technology, where users can send their bitcoin to another sidechain without any third party overseeing the swap.
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Blockstream.
Water image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Coinbase Expands Reach of Stablecoin-Based AI Agent Payments Tool
The updated protocol, x402 V2, allows developers to combine payments, enable secure wallet access, and add new features via a clean, modular design.
What to know:
- Coinbase has released the latest version of its stablecoin-based payments protocol for AI agents, making it easier to extend and plug in the autonomous payments system.
- The new version adds wallet-based identity, automatic API discovery, dynamic payment recipients, and support for more chains and fiat.
Top Stories
