Using a combination of Lightning and Liquid allows users to benefit from the speed and low cost of off-chain transfers, along with the specific advantages of Liquid itself.
“It's not so widely known but Lightning protocol is designed to work across multiple chains,” Back wrote July 30. He added:
“The demo was L-BTC but could be BTC on one channel hop and L-BTC on another. and route other liquid assets.”
As Cointelegraph reported, the Tether announcement saw a warm reception, as sidechain support means it can handle heavier loads more quickly than its inherent Omni Layer technology.
Liquid introduces sidechain versions of supported tokens — for instance L-BTC for Bitcoin and L-USDT for Tether — which can be exchanged for mainnet tokens of equivalent value at any time a user chooses.
“Given (Tether’s) USDt use case that makes it a good fit for in-chain swaps, fast exchange transfer for arb trade, user cold to exchange tradeable,” he explained about the impetus behind the move.
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