The lightning network may improve Bitcoin, but bitcoin cash [BCH] is still king

Related Topics

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

The lightning network has been hyped as the solution to all of bitcoin’s problems ranging from slow speeds, high transaction costs, and the old issue of scalability. On its part, Bitcoin cash [BCH] has been taunted by some pundits as the true bitcoin, the real vision of Satoshi Nakamoto. So which of them is better for someone looking to make a transaction?  Let’s compare them on their key features then you will realize that bitcoin cash is king.

  1. Transaction speeds

The lightning network aims to make the underlying network faster. For instance, it is usually presented as the solution to bitcoin’s slow transaction speeds. That’s because it creates a layer on top of the bitcoin network, hence increasing confirmation speeds. However, there is one flaw to this process. If you are a new user looking to move bitcoin from a non-lightning supported wallet to one that supports the lightning network, you would have to go through the usual bitcoin confirmations. As such, the lightning network only adds an extra lawyer, but does not in any way solve the problem of speeds as it’s much taunted to do. That’s not the case with Bitcoin cash. Provided you hold bitcoin cash in your wallet, you can send them to any other bitcoin cash wallet, and the transfer will be almost instantaneous.

  1. Transaction costs

Another area where the lightning network is taunted as the solution to bitcoin’s problems is on the issue of costs. Bitcoin transactions are not cheap, and have been increasing as the number of users grows. While the lightning network is intended to solve this problem, a user still has to pay the normal bitcoin transfer fees for them to send bitcoin to a wallet that supports the lightning network. Essentially this means that you would be paying twice to make a payment, since the lightning network is not feeless. That’s not the case with bitcoin cash [BCH].  Since bitcoin cash in its very nature is designed to offer low transaction speeds, it then follows that it is the cheaper crypto when compared to bitcoin even with the introduction of the lightning network. The lightning network is only useful when transferring bitcoins between wallets that support it.

  1. Ease of transactions

The lightning network has one peculiar property, and that’s the fact for you to receive bitcoin, you would have to be online. This can be a challenge for someone looking to get paid in bitcoin, but cannot access their wallet at the time of the transaction.  It is limiting, and defeats the whole essence of blockchain technology, which is freedom. This is not a problem you have to deal with when sending or receiving money via bitcoin cash. Anyone who has your address can send money to your wallet, irrespective of whether you are online or not.

Clearly, the lightning network is not the solution to all of bitcoin’s problems. Bitcoin cash [BCH] still has an edge, and in the long-run could still emerge as the true bitcoin.

Sign up today for our free weekly newsletter!