Lightspark CEO’s Insight on Lightning Network Transactions
You may have heard that David Marcus, co-founder and CEO of Lightspark, addressed the state of custodial and non-custodial transactions on Bitcoin’s Layer 2 scaling solution, the Lightning Network. Marcus is optimistic that the custodial LN for institutions is ready for prime time, but he acknowledges that non-custodial usage still involves some compromises in terms of features.
Lightspark: Optimizing Lightning Network for Institutions
Marcus believes in Bitcoin as the only cryptocurrency capable of serving as the foundation for a worldwide payments network. In a recent statement, he emphasized the neutrality and security of the Bitcoin network, stating that it is the only viable option for global real-time payments.
Lightspark has been working on leveraging LN for institutions and customers to minimize fees and facilitate quick transaction finality. Despite the complexities involved, the company has developed tools and protocols, focusing on custodial scenarios to have the most significant impact in the short and medium term.
Challenges of Non-Custodial LN Transactions
There are challenges in non-custodial LN transactions, particularly concerning high on-chain fees, offline receipt of payments, and the fees for opening channels for smaller transactions. Marcus recognizes that current non-custodial LN users have to make compromises to make the solution economically viable.
Marcus remains optimistic about the future, emphasizing that Bitcoin is poised to become the internet’s money protocol and achieve mass adoption despite the current challenges in non-custodial LN usage.
Hot Take
In conclusion, David Marcus’s insights shed light on the current state of Lightning Network transactions, highlighting the opportunities and challenges for both custodial and non-custodial usage. As the industry continues to innovate, the future of Bitcoin as a global payment network remains promising, despite the existing obstacles.
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