Libra Creator David Marcus Advocates for Lightning Network
Libra creator David Marcus has made a strong case for the Lightning Network as the ultimate solution for effectively scaling Bitcoin. According to Marcus, alternative blockchain products either demonstrate excessive centralization or lack the necessary security measures.
In a recent post, Marcus emphasized Bitcoin‘s unparalleled status as a neutral settlement asset and network capable of ushering in a new era of global real-time payments. He posits that the competition falls short on multiple fronts – either excessively centralized, insecure, lacking regulatory clarity, or failing to provide the required liquidity against fiat currencies (source).
“Lately, there’s been more debate around the value of the Bitcoin Lightning Network.” Marcus states, “Based on the work we’ve been doing at Lightspark for the past 18 months, I will share my honest view. First things first — Bitcoin is the only viable neutral settlement asset and network that can…” (source)
Marcus asserts the importance of faster and more cost-effective Layer 1 (L1) Bitcoin transactions while maintaining trust and security. He sees the Lightning Network as the key solution, allowing accelerated transactions without compromising fundamental principles (source).
However, Marcus also acknowledges the challenges faced by the Lightning Network in its earlier stages, including complexity, high failure rates for larger transactions, and issues related to managing liquidity and channel rebalancing (source).
In his address, Marcus identifies critical areas for improvement, stressing the need for the development of fully self-sovereign identity and addressing systems on the Lightning Network. He also emphasizes the importance of issuing other assets on the network, such as stablecoins, to enhance efficiency for a subset of transactions (source).
In response to Marcus’ statements, Rene Pickhardt, a Bitcoin and Lightning Network developer, agreed on Lightning’s inherent unreliability by design, contrasting it with stablecoins’ trusted nature. Pickhardt raised concerns about integrating stablecoins into Lightning, suggesting it could create an unreliable trusted fiat IOU token and impact routing liquidity (source).
As the debate on the Lightning Network’s reliability and scalability continues, the cryptocurrency community eagerly awaits further developments in this space.
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