Prominent lawyer and cryptocurrency advocate, John Deaton, has expressed his reservations about the effectiveness of the Bitcoin Lightning Network, particularly in comparison to the “Spend The Bits” protocol on the XRP Ledger (XRPL). The Lightning Network is a layer-2 scaling solution designed to enhance the scalability and efficiency of Bitcoin transactions, allowing for off-chain, peer-to-peer exchanges.
In a Twitter post dated October 21, Deaton disclosed his role as an angel investor in Spend the Bits, where he also serves as the chief legal officer. Notably, Deaton has previously endorsed Spend The Bits as a compelling alternative to Lightning on the Bitcoin blockchain. In September, he commended the protocol, highlighting its superior security when using Bitcoin compared to Lightning.
Deaton’s critique coincided with an online post by the crypto investigator WhaleWire, raising concerns about a recent revelation within the Lightning Network. This discovery pointed to a significant security vulnerability that prompted a developer to withdraw from the project. The developer alleged that there were deliberate vulnerabilities within the Lightning Network’s code, potentially granting malicious actors complete control over the network. It is worth noting that major supporters of the Lightning Network are also associated with Tether, Bitfinex, and BlockStream. This claim has cast doubt on the overall security and reliability of the Lightning Network.
As of the current moment, the Lightning Network boasts a network capacity of 5,338 BTC, according to 1ML. This figure has sparked concerns regarding the network’s resilience and long-term sustainability, particularly given that it has experienced a 15% reduction in capacity over the past three months.
