Coinbase, Dorsey Discuss Bitcoin’s Lightning Network

In a recent Twitter exchange, Brian Armstrong, CEO of cryptocurrency exchange Coinbase, and Jack Dorsey, former CEO of Twitter, discussed the potential and future of Bitcoin and its Layer-2 solution, the Lightning Network.

This cordial conversation between two influential executives from the technology and cryptocurrency sectors demonstrates the growing interest in and movement toward Layer-2 solutions for Bitcoin.

Dorsey initiated the discussion by questioning why Coinbase ignored Bitcoin and the Lightning Network.

Armstrong responded by stating that Coinbase is considering the optimal method to integrate the Lightning Network, a task that he acknowledges is not simple but is worthwhile.

He further emphasized Coinbase’s commitment to Bitcoin by alleging that his company has introduced more people to Bitcoin than any other company.

Dorsey suggested that Coinbase allocate more resources to Bitcoin and Layer-2 technologies, recognizing Coinbase’s contributions to the spread of Bitcoin.

He also alluded to the possibility of a collaborative effort, promoting the idea of a decentralized, open protocol for monetary transmission.

Since then, Binance has announced its intention to integrate the Lightning Network to mitigate future base-layer fee increases.

Nonetheless, despite calls from prominent Bitcoin advocates, such as Michael Saylor of MicroStrategy, Coinbase has not yet announced similar intentions.

Dorsey has criticized Ethereum and Solana in the past, dismissing them due to their centralized control and potential for corporate takeover.

Spiral, a Block subsidiary under Dorsey’s aegis, has designed tools to assist app developers in integrating the Lightning Network more seamlessly.

Moreover, CashApp, their popular payment service, has integrated the Lightning Network.

The Layer-2 solution The Lightning Network addresses Bitcoin’s scalability issues. By conducting transactions outside of the leading Bitcoin network, it makes transactions nearly instantaneous and virtually free.

After a surge in Bitcoin-based meme currencies in May resulted in high transaction fees and slowed withdrawals on Binance, this technology attracted more interest.

Despite these obstacles, the Lightning Network’s usage and potential continue to expand. Galoy, a Bitcoin infrastructure provider, has developed “Stablesats,” a method for efficiently exchanging “dollars” over Lightning.

Moreover, Stably has just released the first base-layer stablecoin for Bitcoin, employing the recently adopted BRC-20 token standard.