Although Bitcoin is the most popular and most used cryptocurrency in the world, there are some aspects of it, like high fees or slow confirmation times, that make people prefer other coins. Another issue is that the anonymity and privacy could be better and its Smart contract capabilities are basically non-existent. Because of this, users of cryptocurrencies often go with competing products like Ethereum, Litecoin, Monero, or other Bitcoin forks for better delivery of certain features.

Bitcoin tried to make some quick fixes for the problems mentioned above. Those fixes, however, were not without tradeoffs and they only made Bitcoin more usable in the short term. These fixes refer to competing forks like Litecoin and Bitcoin Cash that were implemented and include changes like increased block size, SegWit2x, and reduced block confirmation times.

On the other side, the Lightning Network, which is a base for Bitcoin 2.0, is a proposed system built on top of Bitcoin that would let people instantaneously send/receive payments and reduce transaction fees by keeping them off the main network. It helps Bitcoin be more useful as a day to day currency. Technically, the Lighting system can be adapted to any cryptocurrency since it’s just a layer built on a blockchain. However, if lightning ends up delivering on its promises, then a question arises. What purpose does Litecoin and Bitcoin Cash serve? Even if those forks implement their own lightning networks, which they technically could, Bitcoin has the most users and dollars behind it and could absorb those ecosystems back into itself.

Installation of Lightning will be the biggest change to Bitcoin ever. If it works, it reintroduces Bitcoin as a usable daily currency, and as a currency unaffected by slow transactions and high fees. This is exciting for the adoption of cryptocurrencies as puts it back on track as a replacement for fiat. Also, if it works, predictions are that other cryptocurrencies, mainly Litecoin and Bitcoin cash are going to have hard times ahead of them.

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Posted by Min Park

Blockchain Marketing Consultant

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