Nym partners with Liquid Federation to enhance Bitcoin layer-2 privacy

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Privacy infrastructure Nym Technologies shared today its movement in joining the Liquid Federation, a 65-entity consortium aimed at fostering the growth of Bitcoin layer-2 (L2) blockchains. Nym is now also a functionary operator for the Bitcoin sidechain Liquid Network.

Nym’s role is to bolster the Liquid Network’s capabilities and enhance transaction privacy, as Liquid gets integrated into Nym’s mixnet. Mixnet is a decentralized and incentivized overlay network for the anonymity and privacy of all users, designed to be integrated with any wallet or application. Like Bitcoin’s blockchain, it is made possible by the work of its community.

“I am pleased to announce Nym as a new functionary within the Liquid Federation,” said Dr. Adam Back, CEO and co-founder of Blockstream. “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 L2 ecosystem.”

The formalization of Nym’s role in the Liquid Federation coincides with the upcoming Bitcoin halving, an event set to impact BTC’s supply and the Bitcoin finance (BTCfi) narrative. The total value locked (TVL) in BTCfi, which includes L2 structures, surpassed $1 billion in April and has risen 285% in 2024 so far, according to data aggregator DefiLlama.

“The very idea of Nym came to me in 2017 when I asked Adam Back how we could make Bitcoin better, and Adam told me that while Bitcoin was more-or-less perfect, the idea of using spare computing power for privacy hadn’t been explored,” stated Harry Halpin, the CEO and co-founder of Nym Technologies. “At that moment, I thought that mixing packets could work like mining Bitcoin. Years of coding later, I’m thrilled to see Nym work even closer with Liquid and Blockstream.”

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