Lightning Network, Bitcoin Sedgwick, and the Taro project.
- Lightning Network, Bitcoin Sedgwick, and the Taro project come together to create a solution, dealing with the Bitcoin volatility which hinders mass adoption of Bitcoin.
- The title suggests I bit off quite a large amount of information, but I wish to distill it down to a few digestible bit.
- Lets begin with background and move quickly to the Take Home Lesson as my teachers use to say.
Background
- Bitcoin: is perhaps the most significant new financial tool of this century.
- Lightning Network: a side chain of Bitcoin, that makes Bitcoin transactions speed of one million transactions per second, and making Bitcoin transactions so cheap, that using Bitcoin to buy a cup of coffee is economically feasible.
- Sedgwick: a recent Bitcoin fork or software modification, which allows certain cryptocurrency constructs like decentralized exchanges to be built on top of Lightning, and transact with Bitcoin.
- Taro project: a multi-asset peer to peer trading protocol being built on Bitcoin Lightning which makes peer to peer trading of cryptocurrency assets like Stablecoins possible on top of Bitcoin, via Lightning.
Added together why is this important?
- A high level view of this is Bitcoin is a bank in your pocket, which can provide all basic banking functions to the majority of people on this planet who are unbanked, as in not having access to basic core banking financial tools.
- Bitcoin can also be used to provide the tech architecture for the development of local economies which flourish due to increased circulation of money within a community. This increases development of jobs and businesses locally, with resultant economic growth.
- Bitcoin volatility makes it extremely hard for individuals in developing countries with low monthly incomes to survive in a Bitcoin denominated ecosystem financially. Because the volatility in Bitcoin price of 300-400 dollars a day exceeds their total monthly income.This wipes out a months wages, destroying the individuals ability to provide, food, shelter and clothing to their family for a month.
- However the development of Lightning, Sedgwick, and now Taro could bring Stablecoins to Lightning, and to these Bitcoin denominated economies in developing countries.
- These Stablecoins can shield poor people, in Bitcoin denominated economies, from Bitcoin volatility.
- Thus protect them from the instantaneous financial ruin that daily Bitcoin price variations exceeding their total monthly incomes cause, because they can transfer their Bitcoin value when earned to Stablecoins.
- The cherry on top of this is that Lightning makes transactions of a Stablecoin like Tether or USDC very, very cheap also.
- Sweet.
Last words
- Stepping back from this and looking at how these pieces fit together, I am in awe, at how wonderfully these pieces fit together and keep the dream alive in terms of Bitcoin fulfilling the dreams of Satoshi of providing this amazing financial tool to all people regardless of their financial status.
- All I can say is Wow!
@shortsegments
About the author..
Shortsegments is a writer focused on cryptocurrency, the blockchain, non-fungible digital tokens or NFTs, and decentralized finance for over four years. He is also a project builder, with three current projects:
- No Loss lottery, a prize linked savings account here on Hive, which awards more the 100 Leo in prizes weekly, and which recent surpassed 5000 tickets sold. @nolosslottery
- Easy DeFi, which provides decentralized finance as a service: a two step process for investment into decentralized finance, which allows investors to bypass the complexity of the usual 10-12 step processes which are necessary to invest in decentralized finance. EasyDefi features investment pools on Cubfinance on the Binance Smart Chain blocjkchauin, or PolyCub on Polygon. Pool members can invest Leo, Hive, HBD or SPS. Learn more here
- Hive Business Center a project creating a list of all businesses on Hive and Businesses anywhere which accept Hive or HBD.
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I wonder if there is a lightening community.
We could invite them to create a community on Leofinance Communities.
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This is a revolutionary development, flying under the radar.
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I think Bitcoin is the biggest economic development since Adam Smith's "Wealth of Nations" and capitalism was essentially formalized back in 1776. Capitalism outlines how people or businesses can help themselves through work and trade; Bitcoin, and blockchains since, are giving people independence in their finances. Combined, those are two very powerful tools people have to improve their lives.
Suppose I've been away from the Bitcoin news...I don't know much/anything about Sedgwick or Taro. Will need to learn up.
!LUV
@crrdlx(1/4) gave you LUV. H-E tools | my wallet | discord | community | <><
HiveBuzz.me NFT for Peace
I agree with this statement:
I understand this very much:
Bitcoin is an amazingly complex and interesting entity, and it almost requires 24/7 dedication to keep up with it. But it's power is amazing.
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Bitcoin is the granddaddy, then all the subdivisions and subforks and ecosystems that have developed in 13 years. I have we're lucky to be living during this onset of tech and economi. !LUV
@crrdlx(5/4) gave you LUV. H-E tools | my wallet | discord | community | <><
HiveBuzz.me NFT for Peace
Yes, indeed thriteen years and is a long time and contains a lot of development. Time flies when your having fun.
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Bitcoin certainly broke the mold when it came to money. The distributed ledger technology was truly Earth-shattering. It really opened the door for so much more.
Lightning Network is allowing Bitcoin to provide micropayments, something the main chain cannot do.
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Agree 100%
Please review this new community I have created to promote businesses on Hive and leave me your feedback. hivebusinesscenter
Well this article is about some prettyy complex stuff, but you managed to give the kids version, so I think I know what your saying. Basically these complex technologies and ideas compliment each other to make the biggest and most important technology of our century more useful to more people.
Thank you
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