Raretoshi is a new NFT marketplace based on the Liquid Bitcoin sidechain.
Raretoshi, a new non-fungible token (NFT) and physical art marketplace based on the Liquid Bitcoin side chain, was announced today. This is evident from a press release sent to Bitcoin Magazine.
“Raretoshi provides all the tools Bitcoin artists need to list their digital or physical art projects for auction or for immediate purchase,” the press release said. “Art in the form of pictures or even videos in MP4 format can be uploaded to Raretoshi and a corresponding NFT is seamlessly embossed using Liquid’s native asset dispensing feature.”
An NFT is a unique token on a blockchain. This is unlike fungible tokens like Bitcoin, which are interchangeable – each satoshi is the same as every other satoshi. NFTs certify the uniqueness of a digital asset that can represent elements such as photos, videos and audio files. Access to copies of the NFT is not restricted, but the original owner can demonstrate legal ownership of the original asset.
Raretoshi brings NFTs to Bitcoin by leveraging the Bitcoin sidechain liquid network, which allows for more cost-effective minting of works of art and allows artists to receive royalties to resell their art.
“Potential buyers can bid on an auction or buy the art immediately with Liquid Bitcoin (L-BTC) or other liquid-based stablecoins such as USDt and L-CAD,” the press release said. “Transactions on Raretoshi utilize Liquid’s atom swap capabilities – exchanges of Liquid Assets and NFTs are completed in the same on-chain transaction, minimizing trust on both sides of the trade.”
A sidechain is an independent blockchain that runs in parallel with another blockchain. This means that tokens from this blockchain can be used securely in the sidechain, while other rules, performance requirements and security mechanisms are observed.
Liquid is a sidechain of Bitcoin that allows Bitcoin to flow between the Liquid and Bitcoin networks using a two-way pen. Bitcoin used in the Liquid network is known as L-BTC, and its proven equivalent amount of BTC is managed and secured by network members called officials. The use of functionaries can be interpreted in such a way that trust in third parties is required.
In addition, this restricted group of officials also acts as block signatories. The composite structure of the network includes subscriber members and full nodes. Participants can opt out (move money from Liquid to Bitcoin) and vote on board elections and network updates. Full nodes can ensure the correct behavior of officials by checking transactions and peg-ins. However, only officials can secure the network.
In addition to allowing the issuance of assets, Liquid also offers confidential transactions and faster money transfer. However, because only a given subset of members can help secure the Liquid network, the federated sidechain is very different from Bitcoin and its main software client – Bitcoin Core. With Bitcoin Core, any node can secure the network by becoming a mining node.
Liquid’s network model, on the other hand, prevents the general public from actively contributing to the security of the network. In addition, Liquid brings three functions at the expense of the trust that the majority of the association will remain honest, which makes it vulnerable to censorship and violates some of Bitcoin’s principles.
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