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# Liquid DeepDive # Liquid DeepDive - Part I
This is a multipart DeepDive that will focus on Liquid Sidechain. It will be released in 3 Parts: This is a multipart DeepDive that will focus on the [Liquid Sidechain](https://liquid.net). It will be released in 3 Parts:
* Part I (this): Overview, Installation, and first Peg-In * Part I (this): Overview, Installation, and first Peg-In
* Part II: Asset Creation and Configuration * Part II: Asset Creation and Configuration
* Part III: Advanced Topics and Peg-out * Part III: Advanced Topics and Peg-out
## Overview ## ## Overview ##
Liquid is a federated sidechain to BTC. The federation which controls the network are known as 'Functionaries'. Currently, there are 15 such Functionaries who are geographically dispered to help isolate the network from both physical and regulatory disruption. Block signing happens in a round-robin style arrangement. ^^Consensus requires 11-of-15 to be available^^. Liquid is a federated BTC sidechain. The federation which controls the network are known as 'Functionaries'. Currently, there are 15 such Functionaries who are geographically dispered to help isolate the network from both physical and regulatory disruption.
A unique aspect of this federation is that membership is dynamic - using a protocol known as *DynaFed* - this allows members to be rotated out/in depending on circumstance. The method the functionaries use to actually sign is known as [ROAST](https://eprint.iacr.org/2022/550.pdf) (Robust Asynchronous Schnorr Threshold Signatures). As stated: Block signing happens in a round-robin style arrangement. ^^Consensus requires 11-of-15 to be available^^.
A unique aspect of this federation is that functioinary membership is dynamic - using a protocol known as *DynaFed* - this allows members to be rotated out/in depending on circumstance. The signing method the functionaries use is known as [ROAST](https://eprint.iacr.org/2022/550.pdf) (Robust Asynchronous Schnorr Threshold Signatures). As stated:
"It guarantees that a quorum of honest signers, e.g., the Liquid functionaries, "It guarantees that a quorum of honest signers, e.g., the Liquid functionaries,
can always obtain a valid signature even in the presence of disruptive signers can always obtain a valid signature even in the presence of disruptive signers
@ -30,14 +32,14 @@ By default, all Liquid transactions use ^^Confidential Transactions^^, so both t
**Liquid Ecosystem and Roles** **Liquid Ecosystem and Roles**
Here are some charts showing current ecosystem members and the roles various members can fulfill. Here are some charts showing current ecosystem members and the roles various members can fulfill. In total there are currently 66 Liquid Members (not all Members are Functionaries).
![](liquid-member-logos.png) ![](liquid-member-logos.png)
![](liquid-roles.png) ![](liquid-roles.png)
### Assets ### Assets
One of the unique aspects of Liquid Network is that it supports a variety of Asset Issuance models that any full-node can perform. These assets fall into the following categories / use-cases: One of the unique aspects of Liquid Network is that it supports Asset Issuance. Any full-node can issue their own Assets (only requirement is to have needed L-BTC to pay for signing fees). These assets fall into the following categories / use-cases:
* Tokens (e.g. arbitrary token issue, stablecoin, etc) * Tokens (e.g. arbitrary token issue, stablecoin, etc)
* Swaps (e.g. atomic swap of Token A for Token B) * Swaps (e.g. atomic swap of Token A for Token B)