Getting Started on Liquid

Foreign [Music] Welcome back bitcoiners I'm Drew your Host of deciphered a show from Blockstream that shows best practices in Bitcoin by exploring some of the neat Features in our products like Blockstream green jade satellite and More In today's episode we'll be doing an Overview of the liquid Network and show You how to get liquid Bitcoin using side Swap but first let's start by learning More about liquid and the network itself Liquid is a Bitcoin layer 2 solution Enabling the fast confidential Settlement and issuance of digital Assets such as stable coins security Tokens nfts and other financial Instruments on top of Bitcoin it was Designed to replace a broken Financial System that relies heavily on Centralized trust intermediaries and Custodians and replace it with one with Distributed trust privacy and Self-custody users often refer to liquid As bitcoin's Financial layer similar to How lightning is looked at as bitcoin's Payment layer Financial markets and instruments like Equities bonds and securities are a Major Staple in modern Capital markets In a hyper Bitcoin eyes future they will Not disappear and instead will be

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Integrated on top of Bitcoin through an Additional layers like liquid next let's Go into some of the features and Benefits of using liquid and how it Provides users with new capabilities on Top of Bitcoin So unlike the Bitcoin blockchain where a New block is created based on the proof Of work algorithm which provides a new Block every 10 minutes the liquid Network produces a new block like Clockwork every minute achieving final Settlement in two blocks otherwise two Minutes this is in stark contrast to the Bitcoin blockchain where final Settlement is considered to be final After six blocks which is roughly 60 Minutes Because blocks are certain and happen Every one minute on liquid it's easier For developers to build Financial tools Like options contracts that require more Deterministic execution More frequent blocks also help to keep Transactions fees low on the liquid Network which are roughly only a few Cents at the moment liquid also allows For the tokenization and issuance of Other digital assets natively with only A few command line prompts all you need To do is run your own liquid node where You can use a myriad of other asset Issuance tools such as classic coinos or The Specter wallet blockchain also has a

New asset issuer tool that's featured on Our website where financial institutions Can create their own stable coins Equity Tokens or bonds or even just everyday Users who want to create their own nfts Or tokens that represent something we'll Be doing another deciphered video in the Future on this great new tool so make Sure you hit that subscribe button Another big feature in liquid are Confidential transactions this blinds The asset type and the amount when Sending transactions by default a note To keep in mind is you can always choose To turn confidential transactions off For auditing purposes if need be To help us better understand the Importance of confidential transactions And the technology behind it let's call Up James Dorfman he's one of the young Bright Engineers on the blockchain team That works on liquid so with that let's Call James [Music] Hey Drew Jane's here thanks for having Me on I'm a big fan of the show Confidential transactions are an Extremely cool idea which originated in A proposal from Dr Adam back on the Bitcoin talk Forum in 2013. they were Implemented in 2018 on liquid As Drew mentioned when you use Confidential transactions on liquid Asset type and amount are hidden

Now this is different from a public Blockchain like Bitcoin on bitcoin the Values in each transaction are publicly Visible to anyone with a copy of The Ledger this means that if I send you 10 000 SATs in exchange for some Fitness Advice Any third party can see it on the Blockchain of course most observers of The transaction won't know that the Bitcoin address in question belongs to Me however What if I obtain this Bitcoin from an Exchange or what if my employer paid it To me for my salary These parties will be able to see Exactly how many SATs I sent with Confidential transactions on liquid the Values in each transaction appear Obfuscated to third-party Observers This means that only the sender and the Recipient are aware of the amounts being Transacted This is great for privacy furthermore Users can similarly hide the asset type Itself preventing unwanted third parties From knowing whether you're sending lbdc Tether BMN or one of the other many Assets on liquid confidential Transactions are completely optional on Liquid so you can choose to make Unblinded transactions at any time this Ability to make non-confidential Transactions is very useful for

Financial institutions or asset issuers That need to meet compliance laws However For the everyday user having this Feature available is still extremely Powerful since it gives you more control Over your financial privacy For more information about confidential Transactions and other features unique To liquid join me on the liquid Community telegram where a lot of Interesting discussions take place Thanks again for having me on Drew I'll See you next time Thanks James that was a great summary we Can't wait to have you on in the future To break down some more complex topics For us thanks dude Foreign Now that we have a basic understanding Of some of the new capabilities liquid Provides Bitcoin let's explore some of The things that you can do right now on The liquid Network as just a general User liquid brings a whole new host of Financial tooling to users some of these New capabilities users and businesses Can use are trustlessly swapping assets Like Bitcoin usdt and security tokens Like the BMN on platforms such as Sideswap and side shift you can also Dollar cost average into Bitcoin using These swap platforms send fast cheap and More confidential Bitcoin or us Euro or

Canadian dollar stable coins Peer-to-peer without any Middleman Avoid front running by using liquid's Confidential transactions when sending Large amounts of Bitcoin or usdt to Exchanges like bitfinex or bisque Build a portfolio of security tokens Like the block stream mining note or the EXO Equity token as an everyday user you Can also lend and borrow Bitcoin on Platforms such as huddle huddle Earn Bitcoin by providing liquidity for D5 projects on bit Matrix Issue purchase or use voucher coupons to Get special discounts for example users Can get special discounts right now on Several items that are listed on the Blockchain store by checking out the Token Market on sideswap this includes a 15 discount on my favorite Hardware Wallet the Jade create or bid on nfts And physical art on rare Toshi tokenize Or purchase real estate on maven nft Or if you're an institution or business You can tokenize company equity and debt Issue bonds and other financial Instruments you will also need a liquid Wallet to hold your liquid Bitcoin and Other liquid assets luckily you have Quite a few to choose from here are some Of our favorites Aqua it's a User-friendly wallet where you can Purchase Bitcoin and liquid Bitcoin in The app with your credit card

Blockstream green is a security and Privacy focused wallet with multi-sig And two-factor authentication from Blockchain it is also compatible with The block stream Jade Hardware wallet Marina is a browser extension wallet That is built for convenience this Wallet works great with the new Automatic Market maker from bit Matrix Specter is a desktop wallet that allows You to set up a liquid node within the App and store your liquid assets There is also a built-in liquid asset Issuer tool and it is also compatible With the Jade Hardware wallet platforms That are compatible with liquid will Also have their own wallets built in Such as side swap bitfinex survival and Many others some of these wallets are Non-custodial some are not so make sure You do your own research but we think It's a good policy to have a pure wallet Dedicated to securing your assets where You control your own Keys the next and Final step we'll discuss is how to get Liquid Bitcoin liquid Bitcoin is a Special liquid asset as it is verifiably Backed one to one with Bitcoin on the Main chain Liquid Bitcoin is the Network's native Token and it is required to cover Transaction fees when sending assets for Example if you send usdt to a friend You'll need a small amount of liquid

Bitcoin in your wallet to cover the Transaction costs which is averaging Around 300 sets or roughly 5 cents in Today's bitcoin price of twenty one Thousand dollars you can get liquid Bitcoin through many different ways and On many different types of platforms for Example you could purchase directly from Brokerages like Bitcoin Reserve or bull Bitcoin these are probably best suited For large purchase amounts or you can Use certain exchanges like bitfinex and BTC Turk Or you can even bridge in your own Bitcoin if you run your own liquid node That you're going to need a little bit More technical know-how so this might Not be suited for everybody For today's episode we'll be Transferring our Bitcoin to liquid Bitcoin through one of the swap Platforms that I mentioned earlier Called sideswap We highly recommend side swap because It's one of the easiest ways to start Trading assets trustlessly on the liquid Network You'll first need to download the Sideswap app for your mobile device or Your desktop and create or import a Liquid wallet once your wallet is made You'll go to the peg in Peg out feature Of the app this allows you to switch Between main chain Bitcoin and liquid

Bitcoin When you choose to Peg in or transfer Your Bitcoin to liquid Bitcoin there is A small fee of 0.1 percent For other transactions on sideswap the Fee structure is as follows pegging in Which is transferring Bitcoin to liquid Bitcoin has a 0.1 percent fee pegging Out which is transferring liquid Bitcoin To main chain Bitcoin is 0.1 percent fee Instant swaps have a 0.75 percent spread Ends the swap Market trades have a point One percent fee Great so now that I'm in my side swap App I can now pack in some Bitcoin and Receive some liquid Bitcoin so in order To do that I'm going to go over to this Third Tab and I'm going to go over to The Pagan slash Peg out tab from here It's going to tell you that for larger Pagan transactions you might need to Wait 102 confirmations I don't need to Wait that long because I'm not sending That much Bitcoin over Great so from here it'll let you pick Down from the drop down menu on what Asset you want to send over for this Example I will be simply sending over Some Bitcoin From there it will tell us that we are Going to receive some liquid Bitcoin Which is exactly what we want and so We're going to press peg in awesome from Here it's going to give us a new pop-up

Menu and it is going to ask us to copy Over the address And it's going to ask for a minimum of 10 000 sets So this is what I'm going to go to my Green wallet And I already have my Bitcoin wallet Open so I'm going to go to my account That has some funds in there and I'm Going to Simply press send From there I'm going to paste in my Address that I got from sideswap I'm Going to pick which coins I want manual Coin selection coin select and if you Remember we did this in a earlier video Uh where we talked about coin selection So check out that and that'll be linked In the description down below Great so we're going to send all of These uh all these stats from this utxo In the network fee we're in no Particular rush so we'll go the one set Per byte great we'll review And for my notes I'm going to put inside Swap Great so I'm going to press send awesome So it tells the green wallet now says my Transaction is being sent so now We can go over to our liquid and you can See that the transaction has been Confirmed uh within liquid so now we Have to wait a couple minutes to make Sure we get the to weight to get the Liquid Bitcoin from our Pagan so let's

Wait for that to happen great after Waiting a couple minutes we can see that Our Pagan worked and now we have 48 000 Sets of liquid Bitcoin nice job so now I'm going to take this liquid Bitcoin And send it to my block stream green Wall so in order to do that I'm going to Go up to the upper right hand corner in My side swap wallet and I need to grab An address first so I'm actually going To go to my green wallet and I'm going To go to my liquid wallet and I'm going To press receive From there I'm going to copy my liquid Address and I'm going to go back to Liquid And now I'll go up to the upper right Hand corner and press send I'm going to Paste in my address and I want to send All of my liquid Bitcoin to from my side Swap to my liquid Bitcoin address wallet In my green wallet From there I'm going to press Max I'm Going to press review The address looks right to me And the network fee looks good to me so With that I'm going to press broadcast The transaction is sent and if you Remember from earlier each confirmation Takes one minute to send or to confirm So we're going to wait two minutes and We will see our liquid Bitcoin within Our green wallet so let's wait for that As you can see an unconfirmed

Transaction came in so let's wait our Two minutes great after waiting two Minutes we can see that our transaction Is confirmed and now we have our liquid Bitcoin within our green wallet nice job That's it for today folks let's quickly Summarize what we learned today We first discussed what the liquid Network is it's a Bitcoin layer 2 Solution with a focus on financial Applications and markets we also learned About some of the cool functions that Liquid offers such as faster block times Confidential transactions and the Ability to issue new stable coins Security tokens bonds Equity tokens Vouchers nfts and much much more Then we shared with you a list of new Finance tooling currently available to Users including portfolio construction Trustless swaps lending and borrowing Providing liquidity for decentralized Applications tokenization of real estate Art equities and debt and other real World assets then we shared some of our Favorite liquid wallets which include Aqua green Marina Spector and more And then finally we discussed on how to Get some liquid Bitcoin through the side Swap app and how to send back and forth To our green wallet before we go I also Want to give a special thanks to James For joining us in cyberspace Thank you for doing such a great job

Explaining how confidential transactions Work so make sure you go follow him on Twitter And finally if you have any other Questions related to liquid feel free to Reach out to us in the comments section Down below we're always looking for new Topics to cover And as always thank you for watching Until next time continue stacking those Stats and remember don't trust verify Foreign [Music]

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