Lawyer and cryptocurrency supporter John Deaton has expressed his criticism of the Lightning Network, arguing that it is inferior to the “Spend The Bits” protocol on the XRP Ledger (XRPL). The Lightning Network is a layer-2 scaling solution for Bitcoin, designed to enhance the scalability and efficiency of BTC transactions by enabling off-chain, peer-to-peer transactions.
In a recent tweet on X (formerly Twitter), Deaton revealed that he is not only an angel investor but also the chief legal officer of Spend the Bits. This disclosure comes after Deaton previously praised Spend The Bits as a viable alternative to Lightning on the Bitcoin blockchain. In September, the pro-XRP attorney endorsed the protocol, stating that it provides a more secure method for utilizing Bitcoin compared to Lightning.
Deaton’s timing in making this revelation is notable, coinciding with a tweet from the online crypto investigator WhaleWire. The tweet raised concerns about a significant security vulnerability discovered in the Lightning Network, leading to a developer withdrawing from the project. The developer alleged that there are deliberate vulnerabilities in the Lightning Network’s code, which could potentially grant attackers complete control over the network. This claim has prompted questions about the security and trustworthiness of Lightning, particularly since major backers of the network are involved in Tether, Bitfinex, and BlockStream.
Furthermore, doubts have arisen regarding the resilience and long-term viability of the Lightning Network due to its current capacity. According to 1ML, the Lightning Network can handle transactions involving 5,338 BTC, which represents only 0.025% of Bitcoin’s total supply. Additionally, the network has experienced a 15% reduction in capacity over the past three months. These statistics have raised concerns about the network’s ability to scale and sustain its performance.
The comparison between Lightning and Spend The Bits brings into focus the ongoing competition among different scaling solutions within the cryptocurrency industry. Each protocol aims to address the challenges of scalability and transaction efficiency, but they employ different approaches. Deaton’s support for Spend The Bits highlights the belief that alternative solutions like the XRPL can offer better security and reliability compared to Lightning.
As the cryptocurrency ecosystem continues to evolve, the development of more efficient and secure scaling solutions remains an ongoing priority. It is essential for users and industry participants to carefully evaluate different protocols and assess their strengths and weaknesses. The scrutiny and discussion surrounding the Lightning Network and Spend The Bits contribute to the collective effort of improving the infrastructure and user experience in the crypto space.