Jack Dorsey did not like FTX CEO Sam Bankman-Fried’s criticisms of bitcoin’s viability as a payment system. The head of Block also got into an argument with him over his refusal to acknowledge Lightning’s achievements and the need for mining.
The conflict began when Bankman-Fried told the Financial Times that bitcoin could not support a large volume of transactions. At the same time, he recognized the Lightning network as a useful solution and cryptocurrencies as a means of savings.
Jack Dorsey took this statement with skepticism, while also asking the CEO why he didn’t mention Lightning Network in the first place.
And you didn’t mention the Lightning Network because…?
The Lightning Network is the leading decentralized scaling solution for the bitcoin network, designed to provide the network with fast and cheap transactions that can’t be done on a basic level. Chivo Bitcoin Wallet in El Salvador uses this network to provide instant and free cross-border money transfers from the United States.
Bitcoin payment processor Strike also uses a Layer 2 solution. Soon it will allow large U.S. merchants to process both fiat and bitcoin payments through Lightning.
… Lighting was designed to speed up the movement of bitcoin in everyday transactions,” Dorsey added.
In his defense, the FTX CEO said he usually mentions Lightning when asked about it, but he was misquoted in the interview. He also expressed some interest in integrating Lightning into his exchange, which would allow traders to transfer and withdraw funds much faster and cheaper.
In the interview, Bankman-Fried also stated that bitcoin’s use of the Proof-of-Work (POW) consensus model is inefficient in terms of transactions. Dorsey stood by his position that mining is the “Holy Grail” of network security.
It’s the easiest and most intuitive option… it can be trusted the most, given how decentralized it can be.
In addition, the head of Block reiterated his talking points from a letter he sent to the U.S. Environmental Protection Agency last month, where he opined that Proof-of-Stake blockchains are subject to “single points of failure.”