Bitcoin with Lightning Network more closely fits the Bitcoin whitepaper: Litecoin’s Charlie Lee
Litecoin founder, Charlie Lee, took to Twitter to explain how “Bitcoin with Lightning Network more closely fits the Bitcoin whitepaper’s title: ‘A Peer-to-Peer Electronic Cash System’.” This comes soon after the debate he had with Bitcoin Cash proponent, Roger Ver when he appeared on Bitcoin.com. Ver started the discussion by stating that Bitcoin no longer have the characteristic of a peer-peer electronic cash system.
On October 6, Charlie Lee shared a series of tweets to explain Lightning Network closely fits the Bitcoin whitepaper’s title. He started by stating that on-chain Bitcoin and Litecoin payments are not peer-to-peer and that payments are sent from sender to miners and it is recorded on a distributed ledger. The payment is received by the recipient when it’s recorded. However, “this is facilitated by a p2p network where transactions are broadcasted,” he added.
He went on to explain that the broadcast network is p2p, but the payments are not p2p. “The sender can ignore the p2p network and directly communicate the transaction to miners to send payments,” Lee noted. Moreover, the sender doesn’t have to communicate with the recipient in any p2p manner at all. And, it is convenient for the recipient as the person doesn’t have to be online in order to receive payments.
Lee added, “Ironically, on-chain payments resembles more closely to a hub and spoke model where the mining pools are the hubs and users just need to connect to those hubs to send payments.”
He, then went on to explain Lightning network payments mentioning that they are p2p payments. Sometimes they are direct p2p and sometimes indirect p2p. “LN payments have to be sent from peer to peer to get from the sender to the recipient. Both have to be online, just like other p2p networks like BitTorrent,” Lee tweeted.
He goes on to write, “Because LN payments are peer-to-peer, they can work if the peers involved are disconnected from the rest of the internet.” Lee added that without relying on any other parties, the sender can send payments directly to the recipient by just having a direct connection. He concluded it by mentioning that Lightning Network closely fits Satoshi’s vision that’s mentioned in the Bitcoin whitepaper.
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