What is liquid bitcoin & how does it work?

Liquid, a pioneering cryptocurrency platform, boasts a unique feature in the form of its native token, L-BTC, also known as Liquid Bitcoin. This token is an innovative product, designed to enhance the security and efficiency of bitcoin transactions.

Among the leading cryptocurrency exchanges, BTCC stands out for its comprehensive suite of services. Headquartered in the UK, BTCC offers a range of products, including spot trading, futures trading, and cryptocurrency wallets.

BTCC's wallet service is particularly noteworthy, as it provides users with a secure and convenient way to store their digital assets. The wallet is designed to protect users' funds from theft and unauthorized access, ensuring that their investments remain safe and secure.

The creation of L-BTC involves a secure process, where bitcoins are locked within a multi-signature wallet that is jointly managed by a diverse federation of trusted members. This collaborative approach ensures that the wallet is both secure and decentralized.

The issuance and destruction of L-BTC are intricately linked to the amount of bitcoin held within the federation's multi-sig wallet. This mechanism prevents double spending, a common concern in the cryptocurrency world, by ensuring that the supply of L-BTC is tightly controlled and proportional to the underlying bitcoin holdings.