Litecoin [LTC] creator Charlie Lee says Bitcoin [BTC] transactions are not peer-to-peer right now

Recently, the CEO of Bitcoin.com, Roger Ver and Charlie Lee, the creator of Litecoin [LTC] debated on various aspects of Bitcoin [BTC].

Roger Ver started the discussion by stating that Bitcoin [BTC] no longer possessed the characteristic of a peer-peer electronic cash system. He said:

“In fact many of the BTC proponents are hostile to the idea of using it as cash… they say buying coffee with Bitcoin is stupid. “

Charlie Lee responded by stating:

“They say buying coffee with Bitcoin on chain is stupid…People are working on Lightning network to help Bitcoin scale to the second layer solutions. So it’s still Bitcoin, right. So they’re not hostile.”

Lee stated that the lightning network is a peer-to-peer electronic cash system. The Founder claimed that it was more peer-to-peer in comparison to Bitcoin’s on-chain payment transactions. He further stated that with the lightning network, people were connecting in a network, and the transactions jumped from peer-to-peer within the network. He further added:

“Bitcoin transactions are not peer-to-peer right now. So Bitcoin transactions are a broadcast type of transaction.”

Additionally, Lee stated that the payments on the Bitcoin [BTC] blockchain were sender to sender, which was more like a direct payment.

The lightning network is Bitcoin’s 2nd layer scaling solution and is designed to increase the transaction throughput of Bitcoin. The network achieves this by opening payment channels off the chain. Post-closure of payment channels, all transactions are updated onto the Bitcoin blockchain for immutability. This method is said to speed up Bitcoin transactions to hundreds of thousands of transactions per second.

On being questioned if the Lightning network payments were direct payments, Lee nodded in agreement stating that it is direct if confirmed.

Roger Ver said:

“If it gets confirmed… so did you see there is a picture on Twitter floating around that showed somebody named their lightning node Roger Ver and none of the other lighting nodes we’re connecting to it… and they were all laughing and joking around about it.”

He accused the lightning network of having the ability to exclude people from being able to use it. He argued that this will not be the case on an on-chain Bitcoin network.

Responding, Lee said:

“You can’t exclude anybody from using lightning network… So you’re telling me that everybody in this world that uses Bitcoin, freezes to make a connection to you… that’s just as ridiculous as saying all the miners censored your transaction because they know it’s you.”

Next, the duo went on to speak about the pressure the regulatory bodies were putting on wallets and exchanges like Coinbase and the cryptocurrency space in general. They discussed if there was a possibility of regulators shutting down lightning node operators.

Lee said:

“They won’t be able to. Just like they won’t shut down Bitcoin because they’re not able to do it…. Lightning network is private right, if I spin up a node and open connections to few people no one knows who I am.”

During the discussion, they also spoke about the speed of the lightning network. Lee stated that the lightning network “is very fast”.

Lee went on to say that Bitcoin became popular too fast. He added that price of Bitcoin also shot up too fast. He further stated:

“What happens when that happens is congestion it’s kind of like … if you open a restaurant business, then it got popular too fast, then you have congestion.”

The solution for “congestion” is expanding, he stated. Moreover, he said that expansion can be carried out in two ways. The first way he said, referring to his restaurant example, was to add twice the no of “tables.” In his opinion, this was more of a “bad experience” to people because it was crowded.

The second way he suggested was to expand to the “next-door shop.” According to him, the lightning network serves as that next-door-shop.

They also spoke about payments through the lightning network. He spoke of an instance where he purchased stickers by paying through the network. Moreover, he stated that the payment went through in the first go.

Disagreeing with Lee, Ver stated that he recently made a video with a guy in Hong Kong who attempted to pay through the lightning network, and the payment turned out to be unsuccessful.

The Founder responded by admitting that the network was a work in progress. Charlie Lee concluded by stating that the lightning network was reaching its completion and it will be ready in the next 18 months or lesser.

Be the first to comment

Leave a Reply

Your email address will not be published.


*