Lawyer and cryptocurrency supporter John Deaton has criticized the Lightning Network, deeming it less effective than the “Spend The Bits” protocol on the XRP Ledger (XRPL). Lightning is a layer-2 scaling solution for Bitcoin. It is designed to enhance the scalability and efficiency of Bitcoin (BTC) transactions by enabling off-chain, peer-to-peer transactions.
In an Oct. 21 X (formerly Twitter) post, Deaton revealed he’s an angel investor in Spend the Bits, in addition to its chief legal officer.
Deaton previously touted Spend The Bits as a substitute for Lightning on the Bitcoin blockchain. In September, the pro-XRP (XRP) attorney commended the protocol, characterizing it as a safer method for using your Bitcoin than Lightning.
Let me be clear and transparent: I’m now involved in @Spend_The_Bits as an angel investor and function its Chief Legal Officer. Therefore, please accept my comments with that in mind. But a serious reason I invested in @Spend_The_Bits, or stated more accurately, invested in… https://t.co/aheyTxjGxp
— John E Deaton (@JohnEDeaton1) October 21, 2023
Deaton’s Saturday disclosure was well-timed, aligning with an X post from the net crypto investigator WhaleWire. This tweet raised concerns a couple of recent discovery in Lightning indicating a major security vulnerability that prompted a developer to withdraw from the project.
The developer alleged the presence of deliberate vulnerabilities within the Lightning Network’s code, which could potentially provide attackers with complete network control. Major backers of the Lightning Network are also involved in Tether, Bitfinex and BlockStream. This claim has raised questions on Lightning’s security and trustworthiness.
Related: Lightning Labs releases Taproot Assets alpha, bringing stablecoins to Bitcoin
At the time of writing, the Lightning Network has a network capability of 5,338 BTC, according to 1ML. This has sparked doubts regarding the network’s resilience and long-term viability, with the payment protocol having seen a 15% reduction in capability over the past three months.
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