OpenNode, a lightning network software company just rejected a $1.25 million offer by Roger ver, to switch their workings from Bitcoin (BTC) to Bitcoin Cash (BCH), stating “our vision of a better, more open financial system is only possible with Bitcoin.”
In a recent video, Roger Ver bombarded the Lightning Network and the followers who believe that it can solve Bitcoin network’s scaling issue. He readily pointed out that off-chain scaling using Lightning Network for 10 billion people would take over 100 years, whereas on-chain scaling for Bitcoin Cash would only take 40 years.
OpenNode is a software company that is focussed on developing software that makes it easy to deploy Lightning Network channels for retailers and the general public. The Lightning Network is a series of smart contracts that enables users to transact with bitcoin without cluttering the main Bitcoin network; these transactions are instantaneous and almost fee-less.
Just recently the company received a $1.25 million seed investment from Tim Draper, a renowned American venture capitalist. Mentioning the development Ver does mention that doesn’t want to be on the tail end of an investment from Draper:
“I don’t want to be the opposite side of an investment from Tim Draper. He’s one of the smartest and best investors in the entire world. But, I don’t think Tim has looked at the math on this. Is he willing to wait decades to onboard people? You’re making a mistake in doing that. Lightning Network would work far, far, far, far better on a system that doesn’t have a limit to the size of the blocks, like Bitcoin Cash than it will on BTC. [sic].”
The math that Ver refers to here is the spreadsheet that he develope, illustrating how long Lightning Network would take to scale to the entire world, approximately. Later Bitcoin Cash is added into this mix and factoring in Moore’s and Nielsen’s Laws, which are commonly accepted assertions that computing power doubles approximately every 18 months.
Amongst the few shortcomings in Ver’s analysis is the assumption that he made that both BTC and BCH will be stagnant, with no upgrades or updates whatsoever, over the next 100 years. In addition, Ver does not consider the improvements made to the Lightning Network, which is already gaining considerable traction.
After confidently making these assumptions, Ver went on to make an open offer to OpenNode to develop their technology on BitcoinCash:
“I have an offer for the OpenNode team and Tim Draper. You [Draper] invested $1.25 million in OpenNode, a Bitcoin-only payments processing startup. Well Tim, I’m offering to match your $1.25 million investment in OpenNode, with no strings attached equity-wise. I don’t need one share [of equity] whatsoever. All I require is that OpenNode actually starts working on payment processing for Bitcoin Cash, the version of Bitcoin that has the most Bitcoin-ness about it.”
The offer, however, did not appeal the OneNote team and they tweeted their response for the offer:
Thanks for the $1.25MM offer @rogerkver, but we’re going to have to turn it down. Our vision of a better, more open financial system is only possible with Bitcoin. #bitcoin4everydayhttps://t.co/4tbavwnXXb
— OpenNode (@OpenNodeCo) December 30, 2018
One reason that might have attributed to OpenNodes’ decline is the recent split between Bitcoin Cash and Bitcoin S.V. According to the firm, they have chosen BTC exclusively for the following reasons:
“Bitcoin’s network is a decentralized cryptographic blockchain that has never been hacked or compromised since its inception. It is the most secure, liquid, and longest working blockchain. We are only providing businesses with the ability to accept bitcoin because we want to protect our users as best we can by limiting their exposure to the broader token market.”
BTC vs BCH
The party that supports BCH believes that BCH’s network is a “truer” representation of Satoshi Nakamoto’s vision of peer-to-peer electronic cash. They claim that BTC supporters lack the “common-sense” to implement the changes to improve the protocol. Roger Ver’s criticism is coming from a similar sentiment as well.
However, the BTC community claims that BCH is trying to mislead people through its revisionist history, and by buying domains such as Bitcoin.com and the Twitter handle @Bitcoin, they are just trying to create a misconception that Bitcoin cash is the ‘original’ Bitcoin.
Well, we all know by now which community does OpenNode sides. Regardless of its limitation, every true BTC believer is confident that the protocol will be able to scale and become one of the world’s widely-used payment solutions.