Samson Mow, the CEO of JAN3, has confirmed that the Liquid Network is entering a critical phase of its recovery process with the scheduled transfer of 600 BTC to the alliance wallet. This move follows a successful test transaction of 2.5 BTC, which was executed to ensure the security and stability of the infrastructure. The upcoming transfer is expected to close the current reserve gap, signaling a return to standardized operational capacity for the Bitcoin sidechain.
Restoration of Peg-In and Peg-Out Functionality
As part of its phased recovery strategy, the Liquid Network has officially re-enabled the conversion process between Bitcoin (BTC) and Liquid Bitcoin (LBTC). This restoration allows users to resume 1:1 swaps across the network, facilitating liquidity movement between the mainchain and the sidechain. The recovery efforts are being closely monitored to ensure that all network operations continue to function normally during this transition period.
- Service Providers: Swaps are now available through major partners including AquaBitcoin, Bull Bitcoin, and SideSwap.
- Volume Coverage: These specific providers accounted for approximately 99% of the peg-out transaction volume prior to the recent technical incident.
- Operational Controls: While functions are returning, the alliance is maintaining enhanced operational controls to prevent further disruptions.
Infrastructure Stability and Alliance Security
The transfer of the remaining 600 BTC is slated to occur within the coming days, effectively finalizing the rebalancing of the alliance’s reserves. Liquid Network functions as a sidechain providing faster, confidential transactions for traders and exchanges. By utilizing a federation of functional members—the Liquid Alliance—the protocol ensures that Bitcoin held on the sidechain is always backed by equivalent reserves on the main blockchain.
Despite the recent technical challenges, the network maintains that all core operations are stable. The implementation of enhanced security protocols during the peg-out process is a temporary measure designed to protect user assets while the system returns to its full decentralized efficiency. This proactive approach by JAN3 and the Liquid Federation aims to restore market confidence in Bitcoin's secondary layer solutions.
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