The Twitter CEO just gave Bitcoin’s #1 scaling solution a huge morale and publicity boost.
If you know much about the Bitcoin blockchain, you’ll know it’s not capable of supporting the kind of throughput that would enable it to operate as a true payments network – digital cash for everyday purchases. That’s why the ‘digital gold’ narrative and use case has arisen: Bitcoin is more popular for infrequent, high-value transfers and storage.
The Lightning Network is a so-called Second Tier solution that is built on top of the Bitcoin network and enables low-cost, fast microtransactions. It’s up and running and growing fast. And while Bitcoin ended its last boom with questions about how sustainable the network really was – with $20 transaction fees at the end of 2017 – it looks like it will be starting its next cycle with some real buzz around the potential.
Now, Jack Dorsey, CEO of Twitter, has given the tech a boost by playing a game on the Lightning Network. The Torch game is a simple demonstration of the power of the Lightning Network: one user passes the torch to the next by making a microtransaction. It’s all done over Twitter. Dorsey joined in and passed the torch on to Elizabeth Stark, and so on.
Dorsey has always been a fan of Bitcoin, but this is a great endorsement for the tech that will help power the next phase of decentralised money. The pieces are starting to come together, as they do in a bear market, when tech and commitment are tested and infrastructure is built. While we’re not out of the woods, the mood is starting to change at last.
Perhaps that’s why Mark Jeffrey, an early adopter who wrote Bitcoin Explained Simply way back in 2013 – before most of the world had even heard about Bitcoin – has just gone on record predicting a significant ‘Third Act’ for Bitcoin, with prices heading for $250,000. Comparing the current crypto winter to the dotcom bust, Jeffrey uses the analogy of Star Wars to show where we are in the overall arc of crypto history:
‘This is not the end of the story. This is the middle part. This is the second act. The third act is return of the Jedi and we’re not there yet.’
Red hot news, scorching wit and searing opinion pieces from Crypto Inferno.