The original purpose of banks was to safeguard their depositors’ assets. Plain and simple. This was a “Free Banking System”. A simple contract between 2 parties, the depositor and the bank. In my last debate regarding the Lightning Network, I asserted the best comparison with what’s going on now in Bitcoin is the transition from a free banking system to one where the bank starts to add more “financial services” on top of the original relationship. I got some push back on this comparison. So, I will expand on why this comparison is very important.
In explaining, it is very important to know what the current state is and what events led us here. For that, I invite you to read this article. If you have done this, you know that the Bitcoin Core protocol is destined to have no new features added and no consensus changes after a certain amount of time. There will only be bug fixes. Instead, innovations will be made on new networks that are intended to be directly tied to the mainnet of Bitcoin. …
Some time has passed between the failure of Segwit2x in the summer and autumn of 2017 and the time that I am writing this. I thought that waiting to detail these events was a good idea so that I could get some space and let things fall into proper order in my head. I did not want to be overly emotional in my retrospective.
Before I get into this, I must say that I’ll be leaving names out for what, I think, are obvious reasons. Part of this has to do with me providing a troll shield for these people and the other part is that I think one or two of these people just completely blew it and caused the whole thing to fail before it even got started. I don’t see a reason for calling them out by name. …
Recently, I was asked what I thought of a particular “blockchain” training course. I appreciate being asked this question because I am still learning this very thing myself. I also appreciate being asked this question during “the crypto winter”. Time spent advising people who ask when times are tough is highly productive. Such people are clearly one step ahead of others that respond only to what is fashionable at the moment. Learning to parlay your software engineering skills to the world of cryptocurrency development is a sizable investment.
Let’s talk about what we are really talking about; how to profit from building products and services that our future customers will pay us for. Speculating on future demand. The trouble is you don’t know what you don’t know, but there are people who came before you who are willing (and sometimes able) to fill in those gaps so you can start earning. These guys are selling shovels and pickaxes in this gold rush. Statistics and past history tells that about 80% of these people will sell you an inferior product and sadly waste your precious time. …
In another Medium article, I laid out my case for why the Lightning Network (LN) (or any second tier network) is bad for the future of Bitcoin. In this article, I dive a bit deeper on why becoming a LN user is a bad idea given you are no longer able to use the Bitcoin main chain.
I going to assume your are tangentially familiar with Bitcoin and second tier networks that are being built to be clients of the Bitcoin main chain. No technical knowledge is required.
Let’s fast-forward a few years and assume that a second tier network such as the LN has gained the a plurality of Bitcoin’s user base. The vast majority of all Bitcoin transactions happen on this network, both in number and transaction value. …
The Lightning Network will not be good for the future of Bitcoin, all things considered.
This article is written in preparation for a debate. …