Bitcoin is already a success story like no other. Will the Lightning Network’s cheap transactions take the party to the next level? As our exploration of this new technology progresses, we turn to the ideas of Peter St. Onge. In his newsletter CryptoEconomy he tells us about Porcfest in New Hampshire. There, the participants handled the entire festivities via the Lightning Network.
Related reading | How big is Bitcoin’s Lightning network? The answer will surprise you
“It was an on-site confirmation of what the statistics are already saying: The Lightning Network has arrived. Confirmation that the Bitcoin developer ecosystem has now built the Holy Grail: Bitcoin as a real medium of exchange. One where transfers are instant, essentially free, and as easy to use as the simplest app on your phone, whether it’s Uber, Venmo or Twitter. ”
A detailed description of where the Lightning Network is currently located. However, we’re here to explore another idea of him. In How Cheap Lightning Changes the World, St Onge tells us:
“Millennia of inventions show that they don’t change the world until they get cheap. This implies that Bitcoin has not even started disrupting the real world, and Lightning Network can take it there, from today’s narrow “digital gold” to something revolutionary in the way of agriculture, the printing press, or the internet itself. ”
Are the Lightning Network’s almost free transactions what will bring Bitcoin to the “somewhat revolutionary” level? That’s the case we’re here for.
The Lightning Network solves problems inexpensively
To complete the “somewhat revolutionary” idea, the author gives us this principle:
“It is not the invention that counts, but the spread. For example, steam engines were invented by Heron of Alexandria in the 1st century AD, then forgotten for about 1,500 years, until they were independently rediscovered and ushered in the greatest change since agriculture was invented. ”
In order to change the world, an invention has to solve problems and be cheap enough that the effort makes sense. “The benefits of the solution must outweigh the costs of the solution.” Cheap technology solves exponentially more problems than expensive technology. Peter St. Onge is crammed with the “magical, world-changing, revolutionary cheapness” of the Lightning Network.
BTC price chart on Bitbay | Source: BTC/USD on TradingView.com
Potential uses for microtransactions
According to the author, the Lightning Network could be useful for:
“Acting things that are valuable overall, but too cheap in themselves.”
Trading in “things that are individually very valuable but are currently either too expensive to trade or that are faced with regulatory obstacles”.
In addition, “Lightning could set up uncensible language platforms, even uncensible trade in physical things.”
Related reading | Bitcoin Lightning Network is experiencing a storm of activity and adoption
In addition, “over time there have been millions of failed or outdated business plans that can be implemented with sufficiently low transaction costs,” says Peter St. Onge. The author concludes his prediction with a fairly large window of time for this:
“And to be fair, we’re not talking about an overnight revolution; Lightning is growing fast, but likely has years to reach its size. So I have no idea whether we are talking about 2 years or 20 years. But neither should come as a surprise.
Overall, however, I think microtransactions have the ability to finally unlock the potential of Bitcoin well beyond money. ”
His point remains that using the Lightning Network is cheap enough and easy enough to use to potentially bring on the next billion Bitcoin users. And the party is just getting started.
Let’s end this with a phenomenal two-part video showing how the Lightning Network was attacked but persistently and captured:
(PART 2) pic.twitter.com/gTwsqSLaUb
– ₿ Isaiah⚡️ (@BitcoinIsaiah) August 24, 2021
Featured Image by TheDigitalWay from Pixabay - Charts by TradingView