What are AMP wallet, AMP ID and Liquid Addresses

This article explains AMP Wallets, AMP IDs, and Liquid Addresses, and their roles in Asset and Payout distribution on STOKR.

Image of an AMP wallet on Green: Bitcoin Wallet

Blockstream AMP is an asset management platform designed for issuing and managing assets with transfer restrictions, such as Liquid Securities (e.g., Blockstream Mining Note, CMSTR) or Issuer Tracked assets (e.g., USD Tether) on the Liquid Network. For the purposes of this article, we will focus on Transfer Restricted assets, referred to as Liquid Assets below. 

AMP wallet
The AMP wallet is the wallet used to manage Liquid Assets that are issued on Blockstream AMP. Several wallets solutions that support Liquid Network exist on the market such as SideSwap Wallet or Green: Bitcoin Wallet. 

AMP ID
This is a unique identifier derived from your AMP wallet specifically for managing Liquid Assets. This is like an account number of your wallet. When you create an AMP account within your AMP wallet, an AMP ID is automatically generated for you. It is unique for each wallet.

Liquid Address
This is a specific address on the Liquid network used for sending and receiving cryptocurrencies and Liquid Assets. It is similar to a regular Bitcoin address, but it operates on the Liquid network.There can be multiple Liquid addresses derived from one AMP ID. 

How does AMP ID and Liquid address work?
AMP ID manages multiple Liquid addresses that are associated with it. When you want to send any cryptocurrency or asset from an AMP wallet, you send it on the recipient's Liquid address for the transaction, and your AMP ID is used to authorize the transfer.
Your AMP ID identifies your ownership of Liquid assets, while Liquid addresses are for sending and receiving those assets on the Liquid network.

Importance of AMP ID and Liquid address in the asset distribution and the payout processes on STOKR.
When STOKR issues a Liquid Asset to your AMP wallet or distributes L-BTC, STOKR generates a new Liquid address derived from your AMP ID and transfers the Liquid Asset or L-BTC on this Liquid address. The AMP server allows this without hampering the security of your wallet. That means you will receive the payout on your AMP ID in a new Liquid address. 

Importance of having a secure backup of your seed phrase 
Your AMP wallet is secured by a seed phrase. Accessing your AMP wallet allows you to access all securities or cryptocurrencies sent to your AMP wallet, whichever Liquid address was used to send them.  
We highly recommend you to have a backup of your AMP wallet seed phrase. If you lose access to your AMP wallet, your money is lost forever. 

If you have any other questions or doubts, please feel free to reach out to us at [e-mail].