Quick Comparison
| Feature | Spark | Liquid Network |
|---|---|---|
| Custody Model | Self-custody (you hold keys) | Federated (11-of-15 multisig) |
| Exit Mechanism | Unilateral (trustless) | Requires federation cooperation |
| Settlement Speed | Instant (under 1 second) | ~2 minutes (2 block confirmations) |
| Transaction Fees | Zero (Spark-to-Spark) | ~0.1 sat/vbyte |
| Lightning Support | Native integration | Via submarine swaps |
| Token Standard | BTKN (native) | Issued Assets |
| Trust Assumption | 1-of-n honest operators | 11-of-15 federation honesty |
Custody and Trust
Spark: True Self-Custody
On Spark, you always control your Bitcoin. The system uses a 1-of-n trust model where only one operator needs to behave honestly for your funds to remain secure. Most importantly, you can unilaterally exit to Bitcoin L1 at any time without anyone’s permission.Liquid: Federated Custody
Liquid uses a federated sidechain model. Your Bitcoin is held in a 11-of-15 multisig controlled by federation members (exchanges, financial institutions). To move Bitcoin back to L1, you need cooperation from at least 11 federation members.Speed and Finality
Spark: Instant Finality
Spark transfers settle in under 1 second with immediate finality. There’s no block time, no confirmations to wait for. When you send Bitcoin on Spark, the recipient can spend it immediately.Liquid: 2-Minute Blocks
Liquid has ~1 minute block times and requires 2 confirmations for finality, meaning ~2 minutes for settlement. While faster than Bitcoin L1, this is still orders of magnitude slower than Spark.Fees
Spark: Zero Fees
Spark-to-Spark transfers are completely free. There are no gas fees, no per-transaction costs. You pay fees only when entering or exiting to L1 or Lightning.Liquid: Transaction Fees
Liquid charges transaction fees (typically ~0.1 sat/vbyte). While low, these add up for high-frequency use cases like payments or micropayments.Lightning Integration
Spark: Native Lightning
Spark has native Lightning Network integration. You can send and receive Lightning payments without running a node, managing channels, or worrying about liquidity. Lightning is a first-class citizen.Liquid: Submarine Swaps
Liquid connects to Lightning through submarine swaps, which adds complexity, fees, and trust requirements. It’s not a native integration.Token Issuance
Both platforms support token issuance, but with different approaches:Spark: BTKN Standard
Spark’s BTKN token standard enables:- Instant, zero-fee token transfers
- Built-in compliance controls (freeze/unfreeze)
- No smart contracts required
- Same self-custody guarantees as Bitcoin
Liquid: Issued Assets
Liquid Issued Assets allow token creation but inherit Liquid’s federated trust model and 2-minute settlement times.When to Use Each
Choose Spark When You Need:
- True self-custody with guaranteed exit rights
- Instant settlements for payments or trading
- Zero fees for high-frequency transactions
- Lightning integration without running infrastructure
- Regulated stablecoins with compliance controls
Choose Liquid When You Need:
- Confidential transactions (amount hiding)
- Established exchange integrations
- Compatibility with existing Liquid infrastructure
The Bottom Line
Spark and Liquid solve Bitcoin scaling differently:- Spark prioritizes self-custody, instant finality, and zero fees. You never give up control of your Bitcoin.
- Liquid prioritizes confidential transactions and exchange integrations, but requires trusting a federation.