Craig Wright Says Lightning Network is a Promissory Note System, Security by Law
Craig Wright is one of the most important figures in the cryptocurrency world and supporter of the Bitcoin Cash virtual currency. Some days ago, the US Securities and Exchange Commission (SEC) ruled that cryptocurrencies, including Ethereum (ETH) and Bitcoin (BTC), are not securities.
But nChain chief scientist, Mr. Wright, says that payment channels, like the one of the Lightning Network, work as ‘paid money forwarders.’ nChain and Wright work in order to develop Bitcoin Cash as a viable alternative for Bitcoin, which has been growing in the last years and now is one of the most important cryptos in the market.
Mr. Wright wrote a Medium post in which he explains that malleability is a non-issue. At the same time, he explains that the use of promissory notes has been considered securities and that the Lightning Network is an exchange system of promissory notes.
Wright explains about it:
“The Lightning system itself becomes the token, leaving Bitcoin, Litecoin and all blockchain as dead and hollow ghosts of their former state. In time, if Lightning was to become a trusted medium of exchange, it leads to the perverse scenario where it no longer requires a commodity base (Bitcoin’s legacy chain) to make it work.”
Moreover, it has been argued by several Bitcoin Cash supporters that payment channels like the Lightning Network allow intermediaries to be part of the ecosystem. For example, banks and traditional financial institutions could start to take a piece of the Bitcoin economy, degrading the core principles of Bitcoin.
Furthermore, Wright believes that some people will get rich with this new implementation, but Bitcoin will not be the main benefited. Instead, Lightning Network will be just ‘a form of government exchanges and banks that swap account balances.’
The lightning network is not yet available in its final version, but during this year, developers could unveil it and help the BTC network scale and handle millions of transactions per second with low fees.
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