Scaling Bitcoin: Liquid

This is the fourth part of a Bitcoin research series, where we will be exploring the technical details and growth of scaling solutions built atop the Bitcoin blockchain. The previous parts in this series can be found here:

This piece focuses on Liquid Network, a Bitcoin sidechain launched by Blockstream. Liquid Network uses a consensus model known as Strong Federation (SF), similar to a Proof-of-Staked-Authority consensus, where a handful of validators manages the sidechain state and controls the peg-in and peg-out of Bitcoin from Liquid Network (sidechain) to the Bitcoin network (main chain) via a multisig wallet.