Blockchain Payments for Everyone

Blockchain Payments for Everyone

01 Mission

Mission 01 Mission The Liquidity.Network is a practical blockchain micropayment system, supporting millions of users securely, reducing transaction costs significantly and enabling the mainstream adoption of blockchain. Despite their potential, existing blockchains such as Bitcoin and Ethereum can only process ten s of transactions per second - comparable mainstream payment systems process over thousand transactions per second. Offchain payment channels have been proposed to substantially increase the blockchain s transaction processing capabilities. Typical off-chain channels, however, face several limitations: users need to keep substantial deposits locked up in rigid allocations, payment channel rebalancing is limited to on-chain transactions, complex routing structures needs to be set up, etc. Liquidity.Network is the first practical, secure and scalable off-chain payment hub system for decentralized blockchains. The Liquidity.Network architecture stems from a symbiosis between our novel innovations: the Payment Hub and REVIVE. Liquidity.Network is scalable to multi millions of users, and does not require rigid funds to be locked up. Off-Chain Payment Hub

02 Novelty

Scalable, Instant, Secure, Easy 02 Novelty 1 Enabling Micro-payments and Small Value Transfer (SVT) Negligible transaction costs. 2 3 4 5 6 Instant Payments Send crypto instantly. No waiting time. No rigid locked funds Allocated funds, can be used to pay any other member of the Liquidity.Network. Simplicity Simple design, avoiding complex routing. Transparency Liquidity.Network actions are auditable. Privacy Enhanced transaction privacy. 7 8 9 10 11 Security No Bank required Flexible Fees Generic Peer Reviewed Research Payments are Payments are secured Fees paid by either Built on Ethereum. Paper published in the biggest academic secured by the by the blockchain the sender or the Compatible with ex- IT Security conference (CCS 2017). blockchain. and owned by the recipient. isting solutions (e.g., member at any point. Lightning/Raiden).

Problems of existing off-chain designs And their solution.. 02 Novelty 1 First, payment channels require collateral to be locked up for every channel. This locks up a substantial amount of funds that cannot be used directly with other nodes in the network. Routing payments certainly alleviates this issue, but still limits the available funds to a particular set of routes. 2 3 Second, existing payment channels may Third, routing complexity is one of the biggest hurdles of current off-chain scaling not be re-filled off-chain. The Liquidity. Network team has proposed REVIVE, a solutions such as Lightning and Raiden. novel protocol that allows to refund payment channels off-chain therefore further quidity.network requires significantly less Due to it s hub network structure, the Li- increasing the Liquidity.Network s scalability. REVIVE is already implemented tralized nature. Multiple Liquidity.Network routing, while still benefiting from a decen- and peer-reviewed by a Tier 1 academic hubs can be interconnected with efficient conference. routes for decentralization and redundancy purposes. The Liquidity.Network allows any member of a payment hub, to pay any other member of a payment hub with the allocated funds. REVIVE allows to rebalance payment channels off-chain, avoiding the degradation of payment channels without costly on-chain transactions. The Liquidity.Network operates with simple routing designs, avoiding the complexities faced by Lightning and Raiden.

Architecture Off-chain hub payment 02 Novelty Liquidity.Network Smart Contract The design of the Liquidity.Network is centered around the notion of universal payment hubs. As such, a user that is joining a payment hub, can transact his funds with any other member of the hub, instantly, offchain and therefore at significantly lower costs than regular on-chain transactions. The hub architecture is novel because funds are no longer locked between only two users, but accessible to thousands of other users on the same hub. At the same time, the funds are secured by the blockchain, other users can t steal other user s allocated funds. off-chain payment

Architecture 02 Novelty The Liquidity.Network runs on top of an Ethereum Virtual Machine (EVM) blockchain and enables millions of users and payment processors to exchange crypto. Because the Liquidity.Network is built upon the Ethereum blockchain, it benefits from the existing development and research community. Consumer With its novel design, the Liquidity.Network architecture solves several pressing pain points of existing payment channel designs: No rigid locked funds Payment Processors Simple design and routing Off-chain rebalancing

Architecture Interconnected Hubs 02 Novelty Multiple Liquidity.Network payment hubs can be interconnected. Similar to traditional payment channels, two users of different payment hubs are eligible to perform off-chain payments across different intercon- Hub 1 Hub 2 nected payment hubs. We conjecture that the Liqudity.Network is more efficient than traditional payment channel networks, because only few interconnected payment hubs can serve millions of users. Complex routing connections are therefore not necessary, and less channel refunding is required. off-chain payment

REVIVE Rebalancing payment channels securely off-chain, applies to the hubs. 02 Novelty With REVIVE, we present the first solution that allows an arbitrary set of users in a payment channel network to securely rebalance their channels, according to the preferences of the channel owners. Except in the case of disputes (similar to conventional payment channels), our solution does not require onchain transactions and therefore increases the scalability of existing blockchains. In our security analysis, we show that an honest participant cannot lose any of its funds while rebalancing. Hub 1 Off-chain rebalancing REVIVE is integral part of the Liquidity.Network and allows different hubs to rebalance their respective balances. REVIVE has been published in a Tier 1 Academic IT-Security conference (CCS 17). Hub 2 Khalil and Gervais, https://eprint.iacr.org/2017/823.pdf

Architecture Implementation Status 02 Novelty The Liquidity.Network is already implemented and operates in our private test blockchain. We have implemented the relevant smart contract, the off-chain part necessary for the server communication as well as the user front-end for performing transactions on the Liquidity.Network. Before performing the public launch on an open and decentralized blockchain we re still fine-tuning and performing various experiments to support a smooth delivery. REVIVE, the off-chain rebalancing protocol that is part of the Liquidity.Network s novelty is implemented and tested.

Use case Money transfer 02 Novelty User Liquidity.Network User Instant Ethereum Payment Support for ERC-20 token transfers planned

Use case Purchase 02 Novelty Consumer Liquidity.Network Merchant Instant Ethereum Payment

Use case IoT Sensors 02 Novelty Consumer Liquidity.Network Sensor Instant Ethereum Payment Data

03 People

Founders and Background 03 People The design of the Liquidity.Network became possible due to more than 5 years full time blockchain experience by the founding team members. We have academic expertise in computer science, security, mathematics, formal methods, augmented by professional experience at world leading companies such as Intel and Facebook. The team understood, that in order to continue to revolutionize how society trades and interacts with blockchain technology, scalability needs to be considered as a core business. Since 2013, the Liquidity.Network founder have provided a continuous stream of innovative blockchain security and scalability output (first academic work on double-spending, privacy of lightweight Bitcoin clients, comparison of the security of different blockchains). REVIVE the first off-chain rebalancing scheme for payment channels.

Founders and Background 03 People LiquidChain GmbH, Zurich CHE-433.093.832 Made in Switzerland Dr. Arthur Gervais Arthur is a Lecturer (equivalent Assistant Professor) at Imperial College London and at the Lucerne University (HSLU). He completed his PhD thesis on the topic of the security, performance, and privacy of proof of work blockchains at ETH Zurich in 2016. He co-authored 8+ influential peer-reviewed scientific articles published at top-tier security conferences. Arthur holds two Master degrees from KTH Stockholm and Aalto University and a diplôme d ingénieur from INSA de Lyon from 2012. Co-creator of the smart contract formal verification tool www.securify.ch Rami Khalil Rami started to program when he was 12. Now, he is about to finish his Master degree from ETH Zurich and received his Bachelor from the German University in Cairo with Highest Honors. He got the first place at the ACM Arab Collegiate Programming Contest in 2013, as well as the Honorable Mention at the world finals in Yekaterinburg and in Marrakesh of the ACM International Collegiate Programming Contest. Rami interned three times at Facebook, as well as once at Gnosis.

04 Goals

Strategy and Roadmap 04 Goals September, 2017 Alpha Version of Liquidity.Network November, 2017 December, 2017 Q1 2018 Q2 2018 Q3 2018 First App, Decen- Excited by REVIVE, we developed the first alpha version for Liquidity.Network, and launched a private Liquidity.Network hub. Public Announcement Launch of the official Liquidity.Network website, FAQ, whitepaper, engage the community and public roadmap. Foster development Based on the community feedback we adopt improvement ideas and attract talent to join the Liquidity.Network development. Early Bird Access, Testing Deploy Liquidity.Network hub MVP and give early bird access. Build a strong community. Optimize the hub. Public Liquidity. Network Publish the official and stable Liquidity.Network version. Include web and mobile wallets. Enable inter-hub operability with REVIVE. tralized Exchange Enable the Liquidity. Network to perform exchanges of ERC-20 tokens. Faster and more cost efficient trading than other decentralized solutions.

Off-Chain Crypto Exchange Planned for Q3 2018 04 Goals Consumer Liquidity.Network Consumer Instant Ethereum Payment Instant ERC-20 Token Payment

05 Market

Addressable Market 05 Market Merchandise Rental Services Blockchain Applications IoT Digital Goods Digital Payments Gaming Pay per view

Comparison to other payment solutions 05 Market Liquidity. Network Traditional Banks Online Banks Blockchain Scalability ++ + + - - Speed ++ - - o - Fund Control Decentralized Centralized Centralized Decentralized Security Cryptographic majority voting Trust based Trust based Cryptographic majority voting Accessibility + + + - Fees ++ o o - - worse - - - o + + + better

Comparison to other off-chain solutions 05 Market Blockchain Support Prototype Liquidity. Network Raiden Lightning COMIT Ethereum, Bitcoin (with RSK), others Ethereum, Bitcoin (with RSK) Bitcoin Ethereum, Bitcoin (with RSK) No rigid funds locked Users in funds control Easy Routing Token Support? Ether support BTC? Open Platform Secured by blockchain

Open to other Blockchains 05 Market Prototype Implementation ready for Ethereum and can also be deployed on ETC or Rootstock. Other possible Blockchains for the Liquidity.Network: Bitcoin (through Rootstock) Dfinity NEO Nimiq and others

We believe that the Liquidity.Network is complementary to Lightning and Raiden and that those networks augment each other. We conjecture that both existing concepts would be able to benefit from the Liquidity.Network.

Join us! 05 Market Telegram Community https://t.me/liquiditynetwork Blog https://medium.com/@liquidity.network

Pushing the decentralization of payment systems forward.