Elon Musk Says Bitcoin Lightning Is Needed (for Now)
- 21st May 2021
- Posted by: Hakeem
- Category: Crypto
Tesla CEO Elon Musk is diving deeper into the Bitcoin scaling debate in his latest tweet.
The centibillionaire claims that a single layer will be able to handle all future transactions because of rapidly rising bandwidth and computing power but concedes that Lightning, a Layer 2 protocol, is still needed for now:
Layer count depends on projected bandwidth & compute, both rising rapidly, which means single layer network can carry all human transactions in future imo.
As reported by U.Today, Musk recently came up with the scaling solution for Dogecoin that would allow the meme coin to win “hands down” against Bitcoin.
Reinvigorating the scaling debate
While some were quick to interpret Musk’s tweet as an endorsement for hard forks of the likes of Bitcoin Cash, “big blockers” oppose the use of Lightning since transactions are not settled on-chain.
Increasing Bitcoin’s block size dramatically boosts the cryptocurrency’s scalability, but it also leads to more centralization since full nodes would be way too expensive to operate for the average Joe.
Lightning Labs CEO Elizabeth Stark claims that higher layers allow building complex things on top of the base layer:
Layered architectures make sense. You don’t want too much complexity at the base layer, and you can build out all sorts of things on higher layers.