‘To Production’: Blockstream Hails Issued Assets on Liquid
Blockchain innovation company Blockstream have hailed as finally moving into production the Issued Assets (IA) of their Liquid sidechain implementation. These assets offer a new means of tokenization, giving users the ability to move assets between different blockchains and dissimilar markets.
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Toward Cross-Chain Compatibility
We are excited to introduce #IssuedAssets on Liquid! Users will be able to issue assets representing existing financial instruments such as tokenized fiat, #crypto assets, gold coins, & completely new assets all on a secure #Bitcoin-backed #sidechain. ⛓️ https://t.co/PkE1PnlGrK pic.twitter.com/lXSfJR64Mn
— Blockstream (@Blockstream) July 2, 2018
The IA maturation arguably marks the most significant development in Liquid since the sidechain implementation was first announced back in October 2015. A sidechain, essentially an independent blockchain pegged to another blockchain or more, allows for unique features and interoperability that aren’t possible on most project’s base layers. Liquid’s IAs could facilitate Bitcoin-backed tokens, for example.
As Blockstream noted in their press release:
“Issued Assets (IA) allow Liquid users to create their own token asset on the Liquid sidechain. These assets can represent existing financial instruments like tokenized fiat, crypto assets, attested assets (e.g. gold coins), or completely new assets. Users transact privately with Confidential Assets which hide both the amount and asset type in a transaction from outside parties.”
Digitizing assets is the name of the game, indeed, as Blockstream said use cases for the tech included “the creation of digitizable collectables, reward points, token sales, and fiat.” Notably, IAs allow for one transaction to move multiple assets, the “burning” of assets, the creation of further quantities after an IA has already been released, and private trades.
A New Tokenization Challenger Appears
Ethereum has its various token standards. Bitcoin Cash (BCH) has its “colored coins” proposals. And a whole slew of other crypto projects deal with tokenizing in one form or another.
Yet with Liquid’s IAs, a new tokenizer enters the field and looks to shake up the competition. Its creators hope the tech’s unique characteristics will set it apart, as Blockstream cited the idiosyncratic “advantages” of IAs as the following:
- “Built on a secure, Bitcoin-backed sidechain
- Ability to transact with amounts and asset types hidden
- Transaction finality in under 2 minutes
- Easier technical integration with one platform containing all digital asset representations”
As the Bitcoin network and its associated cryptocurrency have been, and remain, the bellwethers of the cryptoverse, those looking to tokenize assets may increasingly look to IAs for the benefits and security that come with putting value on a “Bitcoin-backed sidechain.”
There’s no telling where tokenization goes from here. But, in the very least, Liquid’s IAs have now entered the fold, making builders’ options — and competition for said builders — all the more fuller. A key thread to watch will be how such competition continues to play out.
What’s your take? Will sidechains become increasingly popular for tokenizing, or is there a better way? Sound off in the comments below.
Images via Pixabay, Blockstream