In a recent interview Twitter’s CEO Jack Dorsey stated that Bitcoin will be the world’s single currency. He casually dismissed Bitcoin’s scalability problem as a matter that “at the end would go away.” These statements are appalling for two reasons: one, different crypto-currencies serve different purposes, and two, after years of research, the best solutions are centralized blockchains.
Most utility and infrastructure tokens use their own token as currency. Nano, Steem, and Ethos all use their coin to incentivize users and conduct transactions. Ripple uses XRP to hold money in escrow. Neo uses GAS to pay for computing power. Ocean Protocol will use its token to pay for data sharing. In addition, the irony is that the growing list of alternative digital currencies exists due to the self-imposed limitations of the Bitcoin network. By design, Bitcoin’s blockchain uses specific data block sizes and each new block added takes ten minutes. And then there are the seven to ten thousand nodes in the network needed for the tedious Proof-of-Work (mining) verification, which create fees. All these rules are countermeasures against hacking attacks but they create a paradox: you cannot scale Bitcoin and keep it decentralized.
Mr. Dorsey endorsement of Bitcoin Lighting as a scalability solution also falls short. The Lightning Network works by bypassing the blockchain through opening channels and a line of credit to execute transactions. Therefore, channels run “Off chain”, and the liquidity of the payments is dependent on the actual existing balance in the channels. In short, the second the blockchain is removed from the equation, Bitcoin becomes something else entirely.
The cold reality is that Bitcoin is too limited in vision and technology. That’s why we have Ethereum, Cardano, IOTA, NEO, NEM, EOS, and many others. Computer scientists all over the world have been working on the Bitcoin blockchain’s scalability problem for years and all the leading solutions abandon it entirely. Advanced blockchains like DAG, Sharding, block lattices, quantum computing, and AI blockchains are superior to Bitcoin’s in all aspects.
Whatever assumptions Mr. Dorsey has in Bitcoin as the only future alternative to the dollar, run contrary to reality. His beliefs that in ten years Bitcoin will assume its role as world currency are also unreal, as quantum computing and AI will also mature in that time. And when that happens, these technologies will create far more efficient currency systems, and they will make the Lightning Network look like a patch for the 23 year old software program that is Bitcoin.