Michael Saylor Explains Why Bitcoin’s Lightning Network Is “Very Interesting”
On Tuesday (November 1, 2022), Michael Saylor, co-founder and executive chairman of business intelligence software company MicroStrategy Inc. (nasdaq: MSTR), spoke about Bitcoin’s Lightning Network during the third-party earnings conference call. quarter of 2022 of his company.
Recall that on August 11, 2020, MicroStrategy announced via a Press release that he had “purchased 21,454 bitcoins at a total purchase price of $250 million” to use as a “primary Treasury reserve asset”.
Saylor said at the time:
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro-factors affecting the economic and business landscape that we believe create long-term risks for our corporate treasury program – risks that need to be addressed proactively.“
Since then, MicroStrategy has continued to hoard Bitcoin, and its former CEO has become one of Bitcoin’s most vocal advocates. MicroStrategy’s latest $BTC purchase, which Saylor tweeted on September 20, 2022, means the company now owns approximately 130,000 bitcoins, which were “acquired for approximately $3.98 billion at an average price of approximately 30,639 dollars per bitcoin”.
This is how Binance Academy Explain What is the Lightning Network?
“The Lightning Network is a network that relies on blockchain to facilitate fast peer-to-peer transactions. It is not exclusive to Bitcoin – other cryptocurrencies such as Litecoin have incorporated it. You might be wondering what we mean by “sits on top of a blockchain”. The Lightning Network is what is known as an off-chain or layer two solution. It allows individuals to transact without having to record every transaction on the blockchain.
“The Lightning Network is separate from the Bitcoin network – it has its own nodes and software, but it still communicates with the main chain. To enter or exit the Lightning Network, you must create special transactions on the blockchain. What you’re actually doing with your first transaction is building some sort of smart contract with another user.“
Anyway, according to the transcription of The Motley Fool’s third quarter 2022 earnings call, Saylor said:
“Block Cash App upgrade and Cash up is a 40 million user type mobile app, and they have upgraded it in their Lightning support. So now they can send and receive lightning to Cash App mobile instances. And they did it with a universal barcode.
“And so that means I can hold the barcode on my phone, and you can scan it, and it’ll either send a bitcoin to the base layer, layer 1, if that’s what you asked for, or it will send it to the Layer of Lightning. We’re already seeing this creating huge excitement in the Lightning dev community.
“It launched a lot more flash wallets. This has generated much more interest among vendors to take Bitcoin as a flash payment. And one of the most interesting stories right now is about a chain of supermarkets called Pick-N-Pay, all over South Africa. Pick-N-Pay has rolled out Lightning Payments to 40 of its live stores as part of the second stage of its Bitcoin adoption.
“And it seems to have succeeded. Many videos are circulating and people are entering and paying in seconds via Lightning transactions on Android and iPhone, but the most important point is that their stated plan is to roll out Bitcoin Lightning support to 1,628 stores. Thus, the widespread adoption of Bitcoin as a medium of exchange via Lightning technology is now taken seriously with the Cash App example, with the Pick-N-Pay example. This is getting a lot of attention in the community. And of course, the advantage for the retailer would not only be that there are almost no fees, but it is also an instant settlement…
“And of course, it also becomes a matter of passion for merchants, because if merchants cannot be paid in hard currency and have to go through multiple tiers of credit, their businesses are also at risk. So that’s a big fundamental development for bitcoin because traditionally the view of bitcoin is that it’s just a store of value because it runs on a tier one transaction network with only seven transactions per second .
“But now that people are saying it’s infinitely scalable on the Lightning Network, it’s not just store value. It is a revolutionary technology that you can integrate into a mobile application on billions and billions of mobile devices. And so, it gets very, very interesting and it changes the narrative when it comes to Bitcoin.“
Saylor first tweeted about the Lightning Network on May 26, 2021:
On September 4, 2022, CoinDesk reported that Saylor spoke (via video call) on Saturday, September 3 to an audience at the Baltic Honeybadger conference in Riga, Latvia, and had this to say about what his company is doing with the Lightning Network:
“MicroStrategy currently has ongoing R&D projects where we are working on enterprise applications of Lightning: Enterprise Lightning Wallet, Enterprise Lightning Servers, Enterprise Authentication.“
He also explained why he thinks Lightning has a great future:
“The advantage of Lightning is not only that you can boost bitcoin to billions or reduce the transaction cost to next to nothing, but also, the ethics of bitcoin is to go very carefully and not budge quickly over the base coat without the universal. consensus, but in Lightning you can develop features much more aggressively and take more risks with apps than with the underlying bitcoin layer.“
In late September, MicroStrategy began looking for a Lightning Software Engineer to help them “build a SaaS platform based on the Lightning Network, providing businesses with innovative solutions to cybersecurity challenges and enabling new e-commerce use cases. “.
On October 4, 2022, Saylor confirmed that – despite what Stockholm-based software engineer Eric Wall thinks – he has made more than three Bitcoining Lightning transactions in his lifetime:
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