Federations

Refers to a group of participants collaborating to manage a network, striking a balance between centralization and decentralization. In federated blockchains, like the Liquid Network, a distributed group of members sign blocks and maintain the network. Unlike exchanges or custodial wallets, federations prevent a central point of failure, as the responsibility is shared among multiple entities, providing increased security and resilience compared to a single centralized system.

Learn more about federations by reading the Strong Federations whitepaper.