Lightning Network Growing Pains Story of Bitcoin-Friendly Business Owner in Australia Surfaces
Lightning Network has generally been viewed in the positive light. Lightning Network is the evolution of the Bitcoin Blockchain, which will provide instantaneous almost zero-free Bitcoin transactions. It proposes a modification in the Bitcoin protocol for specific transactions between trusted parties. It solves the problems of BTC’s transaction congestion and rising fees.
However, a business owner from Australia took up to Twitter to criticize Lightning Network and the Tweetstorm went viral. The businessman, Jason Smith, ho runs a media company in Australia recently tried using the Lightning network to make payments in Bitcoin to the employees situated in the Philippines.
He faced many difficulties that can be seen below.
Here's my honest feedback on the lightning network and Bitcoin:
I run a media company. It's based in Australia. I employ some people in the Philippines to help with back end stuff and some grunt work.
I want to pay them with Bitcoin. But there's a problem.
— Jason Smith (@iwearahoodie) February 28, 2019
Since the system is designed to handle small to medium-sized transactions, it’s not equipped to deal with large payments. Another important issue is centralization. Some crypto experts believe that this type of network might actually encourage centralization in payment hubs, a process fairly similar to miner centralization.
The Lightning Network does not support offline payments. It’s a similar situation when it comes to peer connections. If one of the peers is unresponsive, then users might be forced to wait for hours on end before being able to get ahold of their funds again.
Another drawback is related to the user-friendliness of the system. Therefore, apps running on Lightning are not exactly novice-accessible. Finally, since it’s still a fairly new project and the network hasn’t been tested in all day-to-day conditions, it remains to be seen how well will it cope in the future. Smith goes on to clarify that two things will happen with BTC.
“If we go custodial, the game is fucked but if we get big blocks, we can actually use this thing.”
This led to a debate around Lightning Network being a solution to high BTC fees.
“I also run bitcoin training seminars about bitcoin and I won’t be running anymore until I can actually see where this thing is heading — This high fee bullshit makes the network unusable for normal people, and lightning is not easy to use, which any scaling solution needs to be,” Smith concluded.
Craig Wright didn’t miss the opportunity to take shots at Lightning Network and said:
To the above Tweer, Smith replied: “Thanks, Craig. I’ll look into it with more of an open mind this time.”