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Liquid Bit


L-BIT

Liquid Bit is a scarce and privacy focused digital asset living natively on the Liquid Network.

What Is Liquid Bit?

Liquid Bit is the first asset on the Liquid Network with a large user base that is completely independent and not pegged to any other assets or currencies. The digital asset utilizes all the benefits of the Liquid Network, so L-BIT transactions are secure, fast, privacy oriented and cheap. These properties combined with its scarcity and the fair distribution scheme make L-BIT to be an outstanding medium of exchange.

Asset Characteristics

Liquid Bits a.k.a. "drips" can be fully settled hassle free within only two minutes. Transactions are confidential which means that the amounts are hidden from all third parties. This information is only known by the sender and the receiver involved in the transaction. Transaction fees can be customized and can be as low as a few satoshis. [1]

Scarce Supply

The smallest unit of Liquid Bit is one whole L-BIT - also called as a "drip". Drips can not be divided, so it is impossible to send, receive or hold fractional L-BIT units.

As known, every Bitcoin can be divided into 100 million fragments - satoshis -, so the overall Bitcoin supply can be split to 21 000 000 x 100 000 000 pieces. That is 2 100 000 billion or 2 100 trillion units.

The initial supply of Liquid Bit was 102.4 billion L-BIT units, but after the burn, the final total supply has been permanently decreased to 3 371 430 104 L-BIT.

The asset can be divided only into whole units, which means that L-BIT is more than 622 881 times scarcer than Bitcoin. [2]

Fair Distribution

The key to build a strong community and a good reputation for Liquid Bit is transparency and the fair distribution scheme. The issuance of the asset was truly public, so anyone can verify the supply and the fact that no more units can be issued in the future.

The whole supply has been distributed. No founders or team members were allowed to keep themselves even a single drip. The main part of the distribution process has been achieved in three stages: the airdrop, the presale and the initial exchange offer. During the presale and the initial exchange offer, the price has been locked to 0.00000001 BTC / L-BIT.

The remaining 99 028 569 896 L-BIT units have been burned to ensure the 100% fair distribution.

The Airdrop

The L-BIT airdrop was a huge success. Due to the high demand, all the 400M L-BIT have been claimed by the 31 456 registered members 18 days before the deadline.

The Liquid Bit airdrop was the very first stage of the fair distribution scheme of the total L-BIT supply. Anybody was able to register to receive some free Liquid Bits to start experiencing with the asset. The reserved amount for the airdrop was 400 million L-BIT units. Each participant could receive 10 000 L-BIT just by providing its Liquid address, but there was an opportunity to claim an additional 15 000 L-BIT by completing simple tasks, like sharing the website link on social media networks.

The transparency report of the airdrop settlements is made public and can be downloaded here.

The Presale

The L-BIT presale was the second step of the distribution and it has been started on the 1st of August 2020 and ended on the 30th of September 2020. This was the first opportunity to obtain larger amount of L-BIT with some presale bonuses. During this event a 2 000 million L-BIT soft cap has been applied.

The soft cap has been reached, the total amount distributed during the presale is exactly 2 510 128 273 L-BIT.

The Initial Exchange Offer

The L-BIT initial exchange offer was the third step of the distribution process. It has been started on the 1st of October 2020 and ended on the 30th of November 2020. The IEO was hosted at txbit.io, a relatively new, but very promising exchange. They are running a secure and modern platform with quick deposit and withdrawal times and a professional team. During the IEO, the L-BIT/BTC market was operating in buy-only mode, so people were able to buy L-BIT directly from the order book for a locked price of 0.00000001 BTC per L-BIT. The total amount distributed during the initial exchange offer was 416 300 831 L-BIT units.

After the initial exchange offer, on the 1st of December 2020, the market has been fully opened, and regular trading started.

Post Distribution Burn

After the IEO, the remaining amount has been burned, so all the 99 028 569 896 undistributed L-BIT units have be destroyed forever. This event drastically decreased the final supply of L-BIT to increase its value. It also aimed to guarantee that the team members do not keep themselves an unfair share.

The burn also ensured a healthy demand / supply ratio which gave the asset's value a very strong growth potential. After this burn, all the L-BIT units are owned only by people who participated in the distribution.

It was a permanent, irreversible, fully transparent and trackable event, secured by the Liquid Network. People are able to verify the progress using the block explorer's asset registry page and the burn transaction details.

Wallets

The most popular and easiest way to create a Liquid wallet to use L-BIT is to install the official and open source Green Wallet application developed by Blockstream. The app is available for iOS, Android, F-Droid and Desktop (Windows, MacOS and Linux). Instructions to create a Liquid wallet with Green can be found here.

There is another wallet from Blockstream that supports Liquid assets. This wallet is called Aqua and it makes it easier to manage all Liquid assets and Bitcoin with one single account. While Green wallet is focusing on multisig custodial solutions, Aqua aims to be a non-custodial software wallet. At the moment it is only available for iOS.

Power users can also choose to use Elements Core to interact with the Liquid Network the same way people use the Bitcoin Core software for the Bitcoin Network. Using Elements requires blockchain synchronization and deep technical knowledge, so it is recommended to power users only.

Coinos is another custodial solution to manage Liquid assets. It is a very innovative web application developed by Adam Soltys and the app has many interesting features and tools to interact with Liquid assets.

Goals

There are three long term breakthrough goals to achieve:

1, Successful and fair distribution (done)
2, Providing additional liquidity for the Liquid Network
3, Becoming the base asset of Liquid based conversions

Roadmap

 
2020-02-11
2020-03-02
2020-04-23
2020-05-14
2020-05-17
2020-05-20
2020-05-27
2020-06-01
2020-08-01
2020-10-01
2020-12-01
 
TBD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The idea
Project specification
Business plan
Branding
Asset issuance
Whitepaper
Website launch
Airdrop
Presale
Initial exchange offer
Burn
 
Partnerships
 

Frequently Asked Questions

The team members were following the development of new blockchain projects in the last several years and we realized that the features of the Liquid Network are very promising because it combines the benefits of the best solutions and it is developed and backed by the most noted parties of the blockchain sector.

It is primarily created to be a Bitcoin sidechain, but we do believe that it is also very robust and powerful by itself, as a standalone blockchain as well. The most popular Liquid assets like L-BTC, L-USDT and L-CAD are all pegged to another asset or currency.

We do believe that the features of this technology must be utilized by an asset which is truly independent and does not pegged to something else. By adding the scarce asset design and the fair distribution scheme to the equation we created a digital asset that has all the properties we expect from a successful medium of exchange.
L-BIT has all the advantages of the Liquid Network - which is the extended version of the original Bitcoin protocol -, including security, one minute blocktime, confidential transactions, low fees and a scalability.

The L-BIT asset is not only technically decentralized, the fair distribution scheme ensures that the team members will not keep a large amount for themselves, so L-BIT holders do not need to worry about a massive sudden dump committed by the team.
Just like on the Bitcoin network, the transaction fees on the Liquid Network depend on a several factors including the network load, the number of recipients included in the transaction and the UTXO-s used. Fees are calculated on the virtual size (in vbytes) of the transaction.

Transaction fees on the Liquid Network always must be paid in L-BTC, regardless of the asset type you want to send.

In optimal cases where many recipients are included in the same transaction, the fee can be as low as ~0.00000122 L-BTC per recipient. A typical single recipient L-BIT transaction costs roughly ~0.00000393 L-BTC.
The easiest way to acquire some L-BTC for the transaction fees is to swap some on one of the supported exchanges. If you need help with the process, then take a look at this detailed guide!
After you top-up some L-BTC to your Green wallet to cover the transaction fees, the sending features will become available. The sending process is very easy. First you need to define the receiver's address - which can be done by reading a QR code or entering it manually -, then you need to choose the amount and verify the transaction.
The total final supply after the burn became 3 371 430 104 L-BIT units, but you need to pay attention to the fact that only whole L-BIT units can exist, so the asset can not be divided into fractional numbers.

People find it more comfortable to express values with whole numbers, because whole numbers are more natural and easier to recognize and evaluate. If you would like to express the total supply with the same precision as Bitcoin has - eight decimal points -, then the whole supply would be equal to 33.71430104.

That is the reason why L-BIT is more than 622 881 times scarcer than Bitcoin.
Green wallet can handle multiple Liquid assets, but it was primarily made for L-BTC. This is why the main balance displays only L-BTC. To see the L-BIT balance in the Green wallet, people must open the asset list section of the wallet by selecting the "X assets in this account" button under the main panel.
However both assets share the same technological benefits of the Liquid Network, Liquid Bitcoin (L-BTC) is pegged to BTC - so one Liquid Bitcoin always equals to one Bitcoin -, but L-BIT is an independent asset issued on the Liquid Network.
L-BIT as an asset is completely independent from the Liquid Bit Team. The team has no ability to revert the blockchain to a previous state or undo any L-BIT transaction. Even if the team disappears, both the network and the asset would remain fully operational.
However L-BIT relies on products and technology like the Liquid Network and the Green wallet that was created by Blockstream, the Liquid Bit Team is completely independent and not affiliated with Blockstream the company.
The price of L-BIT can be tracked on txbit.io at them moment.
At the moment, the only exchange listing L-BIT is txbit.io, but we plan to get it listed on other exchanges once the market and the liquidity will be developed nicely.

Project Updates

Liquid Bit updates on Telegram

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