Wednesday 23 August 2017

Instant transactions and no fees? Soon with Bitcoin!


I see a lot of energy from big-blockers those days to try to convince people that bitcoin is now unusable for cheap transactions.Segwit is finally coming in a few hours, lightning network (LN) is ready, and LN implementations are waiting for SegWit to activate, for years now.Let me remind you what the LN is all about, I saw this comment that clearly shows that people still don't understand what practical solution the LN is bringing.Let's look at Starbucks. Instead of throwing every coffee purchase onto the blockchain, it opens a channel that customers can pay through and at the end of a day (24hrs) it settles all transactions on BTC. You however, will not open an LN channel between two people for one tx.You don't have to open a LN channel with everyone, you just need a channel open with an entity that already has a channel with the entity you want to exchange with. And this chain can be as long as it needs to be.Channels can have many uses, one of them being a debit card, one channel could be VISA, another Mastercard, ... (That's only 1 specific use of LN).I suggest you read about it or watch the video http://bit.ly/2vh3McS yeah there are some caveats (need to lock up some coins, need to have an active link, but with big pay processors, e.g. bitpay/coinbase, it's not gonna be worse than now), but the benefits are obvious for day to day transactions:Bitcoin is kept decentralized+secureTXs are freeTXs are instantYou still have the option to pay miners a fee to use the blockchain to do big TXsScalability is exponential, not linear anymoreI'm totally fine leaving 1 BTC in a channel for months of day to day shopping. Don't you?Bigblockers are doing a big marketing push right now because they know once LN is up and used, we are gonna look back at the 1.0 onchain coins as old deprecated technologies for day to day exchanges.Keep in mind that mining is temporary, at some point, fees will have to pay the miners (At 5 tx/second, or even 50/second with 10x blocks, it's not gonna be cheap! And remember that VISA alone is averaging 2000 tx/second), or the coin you use will have to accept inflation.TLDR; The Lightning Network means instant and free transactions for Bitcoin, and applications are coming in a few weeks. Don't fall for the big block argument while we are so close to have the scaling solution. via /r/Bitcoin http://bit.ly/2xun6Eh

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