In an interesting development, a payment processing system related to Bitcoin, OpenNode has declined a lucrative offer of $1.25 million investment from the Bitcoin Cash proponent, Roger Ver. So that you know, OpenNode is developing a payment system related to Bitcoin-only. The payment solution is based on the protocol of Lightning network which is a second-layer payment protocol operating on the top of the blockchain network and enables the fast transaction between different participating nodes. In fact, it is touted as one of the best solutions to the scalability problem faced by Bitcoin. The network comes with the peer-to-peer payment system and uses bi-directional channels for carrying out the digital micropayments without surrendering the funds’ custody. While declining the investment offer, OpenNode emphasized that the open financial payment system it is developing will work only with Bitcoin. This decline has resulted in a flurry of comments in the crypt world with some standing behind Ver’s proposal while others are opposing it.
Ver’s offer and Analysis
Earlier, Ver offered $1.25 million to OpenNode in a youtube video explaining the scaling issue related to the Lightning Network. The offer came close on the heels of a similar investment made by Tim Draper, a US-based venture capitalist in the Bitcoin-only payment system. Ver made it clear in the offer that he doesn’t want any equity shareholding in return to his investment, only the thing he wanted was OpenNode to work on the payment processing system involving Bitcoin Cash. In an explanation, Ver stated that OpenNode should work on the payment method which can easily scale to become money of the world, a veiled reference to one of the main problems faced by Bitcoin regarding its scalability issue. Using the Morre’s law, Ver analyzed the Lightning network and predicted that it would take 200 years for the world to adopt the system. Bitcoin Cash, on the other hand, would require only 50 years achieving the adoption, said Ver, delving into details. Ver predicted that with its block size limited between 1MB to 4MB, Bitcoin would take a reasonable time to become the currency of the world while Bitcoin’s Cash can achieve the same within far less time.
Reaction to Ver’s Analysis
Expectedly, the analysis by Ver drew a sharp reaction from Bitcoin’s loyalists with many pointing out the faulty method of calculation used by Ver in order to propagate the agenda of Bitcoin Cash. After the rejection of investment offer by OpenNode, Ver took to the Twitter and called the rejection, “Tribalism.”
For the knowledge of our readers, Roger Ver is one among the initial developers of the Bitcoin who eventually parted ways with the platform owing to his differences with the teammates over the scaling issues. His persuasion to increase the block size of Bitcoin from 1MB to 4MB for hard fork was met with strong opposition and ultimately led to a divide between the Bitcoin community. The development eventually gave birth to Bitcoin Cash, which has now emerged as arch-rival to Bitcoin.
