rajatsonifinance on Nostr: You look dumb when you say Bitcoin is slow compared to Visa and MasterCard They're ...
You look dumb when you say Bitcoin is slow compared to Visa and MasterCard
They're not solving the same problem
Bitcoin is sound money that can be moved on a decentralized digital network (also called Bitcoin)
Visa and MasterCard move IOUs of unsound money (US Dollars) using a centralized database
The Bitcoin blockchain is the settlement layer of the Bitcoin network
Bitcoin transactions that have been confirmed can't be reversed or censored
They can be sent OR received WITHOUT the need for a central third-party
Lightning is the transaction layer of the Bitcoin network
This network is a way to take transactions off of the base layer and transact on a private database
You can set up your own Lightning node to make it trustless, or you can use apps that people have created to make it trusted (I have a limited understanding of the technicals here)
Eg. Wallet of Satoshi isn't real Lightning - from what I know, you're just using someone else's Lightning node to send and receive transactions
In the current financial system, we can send wire transfers for final settlement
Wire transfers that have been sent cannot be reversed
Wire transfers have to be sent by one financial institution to another financial institution
To send a wire transfer, you MUST complete all KYC (know your client) requirements, which are set by governments
Your bank will ask you 8,483 questions before you can send a wire transfer and you can only send it during bank hours
We use Visa and Mastercard on a day-to-day basis
Visa and MasterCard transactions can be reversed
They require a central authority's permission and can be censored if the payment processor doesn't like you or the merchant you're dealing with
They can be tracked
They can be stopped
The Bitcoin base layer is for movements of large amounts of value, Lightning is for movements of small amounts of value
You would make a payment for something like a car or a house with Bitcoin, and you would pay for coffee with lightning
Once you have a certain amount of money on Lightning, you can move it to the Bitcoin base layer
They're not solving the same problem
Bitcoin is sound money that can be moved on a decentralized digital network (also called Bitcoin)
Visa and MasterCard move IOUs of unsound money (US Dollars) using a centralized database
The Bitcoin blockchain is the settlement layer of the Bitcoin network
Bitcoin transactions that have been confirmed can't be reversed or censored
They can be sent OR received WITHOUT the need for a central third-party
Lightning is the transaction layer of the Bitcoin network
This network is a way to take transactions off of the base layer and transact on a private database
You can set up your own Lightning node to make it trustless, or you can use apps that people have created to make it trusted (I have a limited understanding of the technicals here)
Eg. Wallet of Satoshi isn't real Lightning - from what I know, you're just using someone else's Lightning node to send and receive transactions
In the current financial system, we can send wire transfers for final settlement
Wire transfers that have been sent cannot be reversed
Wire transfers have to be sent by one financial institution to another financial institution
To send a wire transfer, you MUST complete all KYC (know your client) requirements, which are set by governments
Your bank will ask you 8,483 questions before you can send a wire transfer and you can only send it during bank hours
We use Visa and Mastercard on a day-to-day basis
Visa and MasterCard transactions can be reversed
They require a central authority's permission and can be censored if the payment processor doesn't like you or the merchant you're dealing with
They can be tracked
They can be stopped
The Bitcoin base layer is for movements of large amounts of value, Lightning is for movements of small amounts of value
You would make a payment for something like a car or a house with Bitcoin, and you would pay for coffee with lightning
Once you have a certain amount of money on Lightning, you can move it to the Bitcoin base layer