LIGHTNING NETWORK

The Lightning Network is a solution designed to make blockchain transactions, like Bitcoin, faster and cheaper. Instead of recording every transaction directly on the blockchain (which can be slow and expensive), it allows users to create private "channels" for multiple transactions.

Here’s how it works in simple terms:

1. Opening a Channel: Two people lock a certain amount of Bitcoin in a channel. This channel acts like a shared wallet.
2. Exchanging Funds: Within the channel, they can send Bitcoins to each other instantly and at very low fees, without needing to record each transaction on the blockchain.
3. Closing the Channel: When they’re done, they close the channel, and the final balance is recorded on the blockchain.

This system helps reduce congestion on the blockchain while enabling quick, cost-effective transactions.

https://lightning.network/

LIQUID NETWORK

The Liquid Network is a layer-2 solution built on top of the Bitcoin blockchain, designed to make transactions faster, more private, and efficient, especially for exchanges, traders, and financial institutions.

Key Features of Liquid Network:

1. Fast Transactions: Bitcoin transactions on Liquid are confirmed in seconds instead of waiting for the 10-minute block time of the Bitcoin blockchain.
2. Confidential Transactions: Liquid uses a technology called Confidential Transactions, which hides the amounts being sent, providing more privacy for users.
3. Asset Issuance: It allows users to issue and transfer other assets (like stablecoins or security tokens) alongside Bitcoin.
4. Federated Sidechain: Liquid operates as a sidechain, meaning it’s connected to Bitcoin but runs independently, managed by a federation of participants instead of miners.
5. Two-Way Peg: You can move Bitcoin between the main Bitcoin blockchain and the Liquid Network through a process called "pegging."

How It’s Different from the Lightning Network:

Use Case: Lightning is designed for micropayments and frequent small transactions, while Liquid is aimed at large-scale transactions and trading.

Privacy: Liquid offers enhanced privacy with Confidential Transactions, while Lightning focuses on speed and low fees.The Liquid Network is a layer-2 solution built on top of the Bitcoin blockchain, designed to make transactions faster, more private, and efficient, especially for exchanges, traders, and financial institutions.Key Features of Liquid Network:Fast Transactions: Bitcoin transactions on Liquid are confirmed in seconds instead of waiting for the 10-minute block time of the Bitcoin blockchain. Confidential Transactions: Liquid uses a technology called Confidential Transactions, which hides the amounts being sent, providing more privacy for users. Asset Issuance: It allows users to issue and transfer other assets (like stablecoins or security tokens) alongside Bitcoin. Federated Sidechain: Liquid operates as a sidechain, meaning it’s connected to Bitcoin but runs independently, managed by a federation of participants instead of miners. Two-Way Peg: You can move Bitcoin between the main Bitcoin blockchain and the Liquid Network through a process called "pegging."How It’s Different from the Lightning Network:Use Case: Lightning is designed for micropayments and frequent small transactions, while Liquid is aimed at large-scale transactions and trading. Privacy: Liquid offers enhanced privacy with Confidential Transactions, while Lightning focuses on speed and low fees.

https://liquid.net/

I see so many people that still does not know about either Layer 2, and still dont have any clue how people is able to use Bitcoin as local currency and transfer money between others just as fast than using a credit card.

This article is in portugues, so please use a translator:

https://mittechreview.com.br/a-maior-cidade-de-pagamentos-em-bitcoin-esta-no-brasil/