Strong Network is Required to Grow Bitcoin – Elon Musk
Elon Musk has weighed in on the Bitcoin (BTC, +1.25% ) scaling controversy on Twitter, claiming that the layer two payments Lightning Network is “necessary” for the time being.
“Layer count is determined by anticipated bandwidth and computation, both of which are fast increasing, which means a single layer network [e.g., Bitcoin alone] can transport all human transactions in the future IMHO,” Tesla CEO Elon Musk wrote on Twitter on Friday. However, until then, he argues, Lightning will be required to supply the required bandwidth.
The Lightning Network is a layer above the Bitcoin blockchain that allows users to create their channels for sending and receiving payments, allowing for faster and cheaper transactions. Musk has also been reacting to a Twitter discussion over bitcoin’s energy consumption, which was cited as the cause for Tesla’s recent U-turn on using bitcoin as a payment option.
As one solution, he advocated that the top ten mining companies conduct audits of the amount of renewable energy they use in their operations.