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If it wasn’t already abundantly clear, we (Seb & Chevy) love innovation.
Which is why we acquired all types of giddy after we heard Elizabeth Stark, the CEO of Lightning Labs, talk about how far they’ve gotten with improvement in direction of internet hosting stablecoins on the Bitcoin blockchain.
Right here’s three the reason why this might be cool:
Errbody loves to save cash on charges – Visa and Mastercard sometimes cost 1-3%. By utilizing the BTC Lightning Community, transaction charges for the BTC Stablecoin can be “a cent or lower than that.”
Not like among the different stablecoin suppliers, BTC is definitely probably the most decentralized.
When BTC was created, Satoshi didn’t take an preliminary funding from any VC corporations who now personal an enormous share of fairness within the underlying firm.
Did we point out it’s the Bitcoin blockchain?
That in itself is essential as a result of it’s the oldest (and at all times will probably be!) and most safe blockchain that exists.
With out getting too technical, right here’s the way it’ll work:
A stablecoin (let’s name it ‘BTCUSD’) will probably be pegged to the US Greenback, however all transactions will happen on the BTC Lightning Community which is tremendous quick and low cost as a result of it takes plenty of transactions, validates them off-chain, after which simply the primary and final transaction are validated again on the BTC community.
Actually, except you’re fairly nerdy (like us), the ‘how does it work’ half doesn’t matter as a lot because the ‘what can it do for us?’ half.
And briefly, it would allow anybody to spend crypto, in the identical approach they might use a USD debit card at present, only for a less expensive value (via decrease charges).
Now that’s innovation!
