So while many of us bitcoiners are hyped for the lightning network many of use are unaware of bitcoin's sidechains.
You might be asking what is the world is a side chain. A sidechain is a separate chain that connected to the main chain by a type of pegging. Sidechains can introduces new tech to the coin with out affecting the main chain. Useful for bitcoin which has gotten to large to introduce new tech without massive consensus. That is the reason bitcoin goes through softfork not like hardfork upgrades like other coins do(Monero and Eth).
One major example of a bitcoin sidechain is rootstack or rsk for short. Rsk is bitcoin's answer to Eth. Rsk is eth but way faster. Ability to reach 1000 tps onchain along with using eth's tech such as sharding and plasma. Rsk also has it's own version of LN which increases speeds to 20K tps.
https://steemit.com/bitcoin/@sames/bitcoin-s-ethereum-killer-rsk-co
However they are more Sidechain than just Rootstack.
Liquid is an implementation of a federated sidechain - a "private" blockchain with different features, capabilities, and benefits than the main Bitcoin blockchain.
Guys I will be quoting stuff from the official site but not to worry I gave a summarized and simplified of the info talked about in this posts.
The Liquid Network was built specifically to address the particular needs of exchanges and enables the rapid, confidential and secure transfer of funds between participants, providing a solution to the inherent problem of delayed transaction finality on the Bitcoin network. So liquid is basically a way for exchanges to send bitcoin to other exchanges. This is good-for like it or not many crpyto activity is the transfer of one exchange to another. This would make blocks in the main chain smaller/ less clogged letting more actually user to user transactions to happen or to let LN opening and closing transactions to be cheaper ;)
The liquid chain uses bitcoin as its currency. It uses a type of bitcoin pegging.
Liquid works by:
The Liquid sidechain is purpose-built to cater for the needs of exchanges, brokers and traders, enabling the rapid, secure and confidential transfers of large amounts of bitcoin between participants. The use of a blockchain allows for transfers to be made that are not bound by such things as a single user’s channel capacity. Transaction finality is assured once a transaction is included within a block and there is no risk of chain reorganization due to the process of Strong Federation block signing. Transactions are therefore not subject to delay due to the lack of cooperation of other parties. Funds in the sidechain can be increased by member exchanges pegging more bitcoin into the sidechain.
If that sounds to hard think of it like this:
Liquid: Basically Dash federated distributed servers aka masternodes, compromising complete distribution for better efficiency, which is fine since it's pegged to Bitcoin's completely distributed model. All verified Liquid nodes can ensure that the amount of bitcoins inside of the Liquid Network is identical to the amount of bitcoins frozen in the main chain.
Faster Trading – Near instant bitcoin transfers between exchanges allow your users to take advantage of arbitrage opportunities like never before.
Enhanced Efficiency – Market makers can improve their capital efficiency by reducing balances held across multiple exchanges.
Better Privacy – Liquid supports Confidential Transactions for bitcoin amounts transferred in the system, which protects your users from exposure.
Superb Reliability – Built using the battle tested Bitcoin code-base, Liquid software is highly reliable. Also, since Liquid uses signed blocks instead of mining, blocks are always one minute apart instead of an unknown amount of time like Bitcoin.
But how will users use it- won't it like be using another coin? In short yes but many users won't see this.
Liquid is meant to be for traders so the exchanges will hide the complicated work and make it super easy.
Here how:
Exchanges that are members of the Liquid Network have the ability to send bitcoins to other participating exchanges through the Liquid Network. They can then do this on behalf of customers to send money between different exchanges. First a customer would request a deposit address from the destination exchange. This address would be similar to a Bitcoin address but begin with the letters CT. The end user would then take this address to the source exchange and request a withdrawal from that exchange and enter the destination address. The source exchange would then send bitcoins through the Liquid Network to the other exchange who would wait for confirmations of the deposit and credit your account. Users never need to directly access the Liquid Network or hold bitcoins on the Liquid Network - exchanges will do this for you.
So pretty much you just use the exchange normally as you can :) Again this for traders.
Access to Liquid beta is free. There is no requirement for beta participants to move forward with a commercial contract. If you’re interested in getting early access to Liquid, request to join the beta program. Once the Liquid Network goes live, there is a monthly subscription fee.
So all exchanges can use it :)
The prices are set by nodes.
Liquid is a federated sidechain, so it will never be as decentralized as Bitcoin. However, Liquid is designed to remove control from any single party, geographic location, or political jurisdiction. The Liquid Network is operated by functionary servers, each securely hosted by geographically dispersed, independently owned and operated Bitcoin exchanges.Updates are deployed by consensus of participants within the network. No single party, including Blockstream, can control the Liquid network, and furthermore, no single entity is in control of more than a single Liquid functionary server.
So yeah you don't need to worry about hacks or double spending :)
So basically exchanges are all connected to each other. So all exchanges can sell on each other exchanges using a average price feed . This would mean the diff in bitcoin prices would be lower and when an exchange's traders needs more bitcoin to sell or buy, other exchanges can help out :)
Best part of Liquid is it coming out really soon!
Source for many of the info is:
https://blockstream.com/liquid/faq/
My bitcoin lessons:
How segwit is actually a big block increase= https://steemit.com/bitcoin/@sames/how-segwit-is-actually-a-big-block-increase
Why big blocks are not the answer= https://steemit.com/bitcoin/@sames/why-big-blocks-are-not-the-answer
LN nodes are NOT banks or like banks= https://steemit.com/bitcoin/@sames/ln-nodes-are-not-banks-or-like-banks
What is the lightning network= https://steemit.com/bitcoin/@sames/bitcoin-s-lightning-network-simply-explained
How the banks did not buy bitcoin:
https://steemit.com/bitcoin/@sames/how-the-banks-did-not-buy-bitcoin
What is Schoor signatures= https://steemit.com/bitcoin/@tipu/the-next-big-thing-in-bitcoin-network-schnorr-signatures or https://medium.com/@SDWouters/why-schnorr-signatures-will-help-solve-2-of-bitcoins-biggest-problems-today-9b7718e7861c
Bitcoin’s ethereum killer-rsk.co= https://steemit.com/bitcoin/@sames/bitcoin-s-ethereum-killer-rsk-co
Bitcoin newest scaling method adding bech32 plus others= https://steemit.com/bitcoin/@sames/bitcoin-newest-scaling-method-adding-bech32-plus-others
Batching : https://steemit.com/bitcoin/@sames/how-bitcoin-fees-will-get-cheaper-with-out-a-block-increase
Adding privacy to bitcoin with softforks or compatible software: https://steemit.com/privacy/@sames/making-bitcoin-have-fungibility-privacy-again
Transaction speed count using the new tech coming to bitcoin=
https://steemit.com/bitcoin/@sames/segwit-bech32-batching-others-will-lead-to-bitcoin-reaching-passing-ethereum-on-chain-tps-level
Segwit vs big blocks: https://steemit.com/bitcoin/@sames/how-has-segwit-preformed-vs-bitcoin-cash-big-block-upgrade
A plug and play LN node:
https://steemit.com/bitcoin/@sames/a-plug-and-play-ln-node
My bitcoin privacy series:
Post #3 coming out this week!
Introduction post: https://steemit.com/bitcoin/@sames/how-bitcoin-plans-on-adding-privacy-fungibility
Onchain privacy: https://steemit.com/privacy/@sames/on-chain-privacy-how-bitcoin-plans-on-adding-privacy-fungibility
Off chain privacy: https://steemit.com/bitcoin/@sames/offchain-privacy-how-bitcoin-plans-on-adding-privacy-fungibility
Ok guys I testing something cool! So if you don't know 
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What is 
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Well see ya! Sames out :)
As I told before not even Blockstream control how liquid works :)
