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Roger Ver pitted Ethereum and Lightning Network supporters

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Roger Ver pitted Ethereum and Lightning Network supporters

Roger Ver pitted Ethereum and Lightning Network supporters
CONTENT

  • Roger Ver calls the Lightning Network a “complete failure”.

  • The size of bitcoins tokenized on Ethereum has grown to $ 1.3 billion.

  • However, this growth is not scaling, but the DeFi phenomenon..

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Roger Ver made a provocative statement, calling the Lightning Network’s scaling solution “a complete failure.” At the same time, he cited the example of Wrapped Bitcoin on Ethereum.

Well-known Bitcoin Cash lawyer Roger Ver has thrown a very provocative statement into the crypto space that has caused a response from both Ethereum and Lightning Network (LN) enthusiasts..

Roger Ver pitted Ethereum and Lightning Network supporters

Lightning Network lost to Ethereum?

In a post on Twitter, he called the Lightning Network’s solution, designed to tackle the scaling problem of Bitcoin, “a complete failure”. As evidence, he cited the current situation with a sharp increase in the number of bitcoins tokenized on the Ethereum blockchain..

According to BTConEthereum, currently the volume of such coins in the Ethereum ecosystem has increased to almost $ 1.3 billion and amounts to over 118 thousand tokens. The vast majority (almost $ 1 billion) are presented in the form of Wrapped Bitcoin (wBTC).

In the meantime, the Lightning Network ecosystem, designed as a solution to the scalability and bandwidth problem of the bitcoin network, has not seen such a rush. As Ver emphasized in his tweet, almost 100 times less BTC is used on the Lightning Network..

Having nearly 100x more #Bitcoin wrapped for use on #Ethereum than in #LightningNetwork shows LN has been a total failure for scaling BTC. pic.twitter.com/USDQDR9kYv

– Roger Ver (@rogerkver) September 27, 2020

Wrong premise

As expected, these statements immediately drew a response from bitcoin maximalists, Ethereum evangelists and other crypto industry enthusiasts. At the same time, few people fully agreed with Vera’s argument, which is understandable if you think about the essence of his comparison.

Indeed, the BeInCrypto editors have already said that the boom in the DeFi application segment has led to a massive influx of tokenized bitcoins into the Ethereum blockchain. At the same time, in the past two months, this trend has grown even more aggressive thanks to the explosive popularity of a new phenomenon – profitable farming..

Roger Ver pitted Ethereum and Lightning Network supporters

However, profitable farmingCryptocurrencies, as an alternative financial instrument, open up additional earning opportunities for users. Decentralized finance (DeFi) market participants decided to take advantage of this feature …. More in the DeFi segmentDecentralized finance (DeFi) is financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More in essence has nothing to do with the asset scalability issue. All that interests bitcoin owners in this case is a way to use their coins to make a profit through access to liquidity mining and other features of the DeFi segment. From this point of view, wBTC as a tokenized bitcoin is ideal for them.

Meanwhile, the Lightning Network was designed with a completely different purpose. Its goal was to simplify the implementation of micropayments in bitcoins, and LN does it well. The fact that there are fewer bitcoin users in the LN ecosystem does not mean that the project was a failure. He just says that BTC is more actively used for hodling or reinvestment in DeFi than for payments..

Some commentators went further and ironically wrote to Vera that, following his logic, his beloved Bitcoin Cash also turned out to be a “complete failure”, since it is not tokenized on Ethereum.

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