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1/7 When Dropbox, Google or Facebook built their empires, they did it on the Internet.
The Internet was built in layers on a multitude of computer network protocols. Notably, the Internet Protocol (IP) made it mainstream.
Protocols just work together: TCP/IP, HTTP, FTP, etc.
The Internet was built in layers on a multitude of computer network protocols. Notably, the Internet Protocol (IP) made it mainstream.
Protocols just work together: TCP/IP, HTTP, FTP, etc.
2/7 Companies building credit, derivatives, custody or insurance on Bitcoin will win long-term, similar to their homologues that built on top of many layers stacked over IP.
The Bitcoin Protocol (BP) is giving birth to a monetary revolution—also built in layers.
The Bitcoin Protocol (BP) is giving birth to a monetary revolution—also built in layers.
3/7 When Dropbox built their massively successful storage product, they didn’t build their own TCP/IP or FTP, but used public Internet protocols that had ossified over time.
When IP was designed, the protocol couldn’t include many features, which led to other layers.
When IP was designed, the protocol couldn’t include many features, which led to other layers.
4/7 The Lightning Network Protocol (LNP) is one add-on to BP.
BP is making performance trade-offs to allow for ledger integrity & accessible verification.
BP is costly to write on (miners) and cheap to read (full nodes), limiting functions, affecting speed/throughput.
BP is making performance trade-offs to allow for ledger integrity & accessible verification.
BP is costly to write on (miners) and cheap to read (full nodes), limiting functions, affecting speed/throughput.
5/7 BP must stay decentralized to ensure its rules are not altered by powerful attackers.
Running verification software/hardware must be affordable and simplistic to ensure transaction integrity.
LNP is in charge of adding almost instant/cheap transaction settlement.
Running verification software/hardware must be affordable and simplistic to ensure transaction integrity.
LNP is in charge of adding almost instant/cheap transaction settlement.
6/7 Emerging companies building on top of the LNP/BP stack (or within) will be worth trillions of dollars in the coming decades (in today’s terms, which may be irrelevant by then).
Companies distracted by other “base-layer” protocols will fail. Billions of dollars may be lost.
Companies distracted by other “base-layer” protocols will fail. Billions of dollars may be lost.
FIN/7 Learning mistakes in free markets isn’t cheap.
Ignoring historical evidence about the evolution of computer network protocols is delusional.
Never too late to re-route. Bitcoin is most likely the only winning base-layer protocol in 20-30 years.
Why build elsewhere?
Ignoring historical evidence about the evolution of computer network protocols is delusional.
Never too late to re-route. Bitcoin is most likely the only winning base-layer protocol in 20-30 years.
Why build elsewhere?
A few companies building on LNP/BP at the moment:
@Blockstream
@ChaincodeLabs
@lightning
@acinq_co
@BullBitcoin_
@CasaHODL
@unchainedcap
@trylolli
@bitrefill
@sqcrypto
@nodl_it
@ln_zap
@Coinkite
@wasabiwallet
@SamouraiWallet
@OpenNodeCo
@UpstreamDataInc
@Bitfarms_io
...
@Blockstream
@ChaincodeLabs
@lightning
@acinq_co
@BullBitcoin_
@CasaHODL
@unchainedcap
@trylolli
@bitrefill
@sqcrypto
@nodl_it
@ln_zap
@Coinkite
@wasabiwallet
@SamouraiWallet
@OpenNodeCo
@UpstreamDataInc
@Bitfarms_io
...
