Bitcoin continues to maintain its status as the most secure distributed system to achieve interactive consistency amongst its participants. By minimizing trust and decentralizing power structures, Bitcoin removes the need for middlemen in the transfer of value, “allowing any two willing parties to transact directly with each other without the need for a trusted third party.”
Yet, the cryptocurrency industry seems fraught with reincarnation of intermediation on decentralized networks — “decentralized” exchanges that continue to intermediate asset swaps between participants perpetuate the pain-points of Byzantine failure.
Contributors to Liquality have come to recognize that ever since the inception of the Bitcoin experiment, the exchange of value need not be facilitated through an institution called an “exchange”. Bitcoin disintermediates, and it is this paradigm-shifting approach to development that guides Liquality’s vision for a more open and equitable future, where anyone can transact freely from middlemen and discrimination.
Cross-chain Atomic Swaps without middlemen are here
Today — 10 years after Satoshi released the Bitcoin white paper — Liquality is releasing the testnet Alpha of its atomic cross-chain swap enabled wallet interface. This milestone demonstrates what is possible by pushing forth the paradigm of disintermediation and extending its functionality. Through this open source wallet interface, users are empowered to swap assets across blockchains without counterparty risk, middlemen or fees while retaining control over their keys using their preferred wallets— all in a simple and user friendly way.
Built fully open source using the Chain Abstraction Layer (CAL)
To ensure that all participants have equal rights in this protocol, contributors leverage the fully open source chain abstraction layer (CAL) — a modular library for building disintermediated solutions across different blockchains, using a foundation of:
- Hash time locked contracts (HLTCs) for atomic cross-chain swaps
- User-owned-and-deployed, disposable contracts
Building Liquality, together
By leveraging this testnet release as a platform to engage with and learn from the broader community, Liquality contributors hope to:
- Empower participants to realize their fundamental human right to freely transact
- Validate the utility of disintermediated swaps through testing of the swap wallet interface
- Inspire others to build cross-chain application with the mindset to disintermediate, and test the security of our contracts
- Engage in deep discussions and challenge assumptions
- Encourage everyone to stay in the loop for updates and mainnet release
Rather than building a custodial exchange with an access token, Liquality contributors proactively seek to empower individual value and voice for free and equal global exchange — to enable complete autonomy, free from intermediation. By minimizing such points of failure, value can finally flow freely in a peer-to-peer network of liquidity — in Liquality.
Originally published at blog.liquality.io on November 23, 2018.