Home Crypto Elon Musk: Lightning Network Needed to Fix Scalability Problem in Bitcoin Network

Elon Musk: Lightning Network Needed to Fix Scalability Problem in Bitcoin Network

Elon Musk, the founder and CEO of Tesla Inc., sparked on Twitter Saturday, suggesting that the layer-2 funds Lightning Network are required for now to scale Bitcoin (BTC) transaction. The billionaire mentioned that the Bitcoin community may meet growing demand if its customers adopted the Lightning Network, a fee that makes Bitcoins transactions cheaper and quicker.

“Bitcoin hashing (aka mining) vitality utilization is beginning to exceed that of medium-sized international locations. Almost unimaginable for small hashers to succeed with out these large economies of scale. For now, Lightning is required,” Musk mentioned on Twitter.

Lightning is a sort of software program that processes BTC transactions out of the Bitcoin blockchain to lighten the loading on the community. In different phrases, Lightning allows cheaper and quicker transactions by enabling user-generated channels for receiving and sending funds.

Musk, due to this fact, means that lightning can be mandatory to provide the required bandwidth. 

“Layer rely relies on projected bandwidth & compute, each rising quickly, which suggests single layer community [e.g. Bitcoin alone] can carry all human transactions in future imo,” Musk mentioned.

Without this Lightning, presently, it prices a mean charge of $13 and takes 14 minutes to transfer funds throughout the Bitcoin community.

The Lightning may assist to transfer funds at the price of about one satoshi (0.00037636 USD), and transactions are nearly immediate.

However, critics declare that the Lightning Network sacrifices decentralization as some computational work out of the Bitcoin blockchain. 

Musk termed attaining really decentralized finance – to empower folks – as a noble and important objective, responding to BTC Session, a Twitter crypto advocate, who requested whether or not Tesla CEO had put into consideration whether or not lightning sacrificed on decentralization.

Lightning Labs Inc., which primarily based in Silicon Valley, California, started growing the Lightning Network in 2016 and launched a protocol in beta in 2018. Square and Twitter CEO Jack Dorsey is amongst traders in Lighting Labs.

Green Bitcoin Alternative 

Just a few days in the past, Musk commented on BTC due to the crypto’s environmental impression and reliance on Chinese miners. The Tesla CEO has not too long ago talked about Bitcoin’s vitality consumption on Twitter, particularly a shock announcement that Tesla stopped accepting Bitcoin funds for its motorcar gross sales. 

Musk is taking a look at cryptocurrencies’ that makes use of lower than 1% of Bitcoin’s vitality utilization. Dogecoin (DOGE) builders revealed that the Tesla CEO had supplied funds to enhance the community, which consumes a fraction of Bitcoin’s vitality consumption.

Meanwhile, Musk steered ten main cryptocurrency mining companies that ought to put up audits of the quantity of renewable vitality used in their operations as a method to deal with the vitality consumption matter.

Image supply: Shutterstock

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