Nym Technologies joins Liquid Federation to boost Bitcoin layer-2 privacy and security Nym Technologies joins Liquid Federation to boost Bitcoin layer-2 privacy and security
Bitcoin layer-2 networks receive privacy boost through Nym Technologies and Liquid Federation collaboration.
1 min read
Updated: Apr. 18, 2024 at 1:00 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Web3 privacy-focused infrastructure provider Nym Technologies has joined Liquid Federation to support the growing Bitcoin layer-2 ecosystem, according to an April 18 statement shared with CryptoSlate.
The Liquid Federation is a group of crypto-native organizations, including exchanges, trading desks, and developers, that perform vital tasks for the premier Bitcoin sidechain, Liquid Network.
‘Enhancing privacy’
As part of its engagement, Nym Technologies assumes a crucial role as one of the 15 dispersed functionary node operators for Liquid Network.
These specialized nodes, housed in tamper-proof Hardware Security Modules (HSMs), are crucial in managing the Liquid Network’s core infrastructure and transactions. This includes proposing and signing blocks, overseeing the two-way Bitcoin peg, and safeguarding the network’s BTC reserves through a distributed multi-signature wallet.
Meanwhile, the collaboration between Nym, the Liquid Federation, and Blockstream, the Liquid’s technical provider, signifies the first step towards a broader vision.
As per the official statement, the partnership aims to integrate Liquid functionality into the Nym mixnet, bolstering transaction confidentiality during transit and elevating privacy standards for Bitcoin layer-2 users.
Nym’s mixnet is a foundational privacy infrastructure at layer-0, adaptable to any blockchain and adept at concealing traffic, fortifying privacy, and enhancing security for users and validators alike.
Dr. Adam Back, CEO and co-founder of Blockstream, said:
“Liquid’s Confidential Transactions, which rely on homomorphic encryption, are designed to keep transaction details confidential while protecting the network’s integrity and security. Nym’s decision to become a Liquid functionary underscores our shared commitment to enhancing privacy within the Bitcoin layer-2 ecosystem”
Harry Halpin, CEO of Nym Technologies, expressed excitement about Nym’s closer collaboration with Liquid and Blockstream following years of diligent development.
Notably, the partnership coincides with the impending fourth Bitcoin halving event, which would reduce block rewards to 3.25 BTC.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Blockstream
Blockstream is a provider of blockchain technologies, on the forefront of work in cryptography and distributed systems.
Adam Back currently holds the position of CEO at Blockstream, a cutting-edge technology company dedicated to advancing bitcoin and blockchain technology.