Lightning Labs Coordinating Attacks on Bitcoin?

3 years ago

Lightning Labs Coordinating Attacks on Bitcoin? Some Bitcoiners are now making this accusation. To do this, they use a specific argument. They believe the central development studio behind the Lightning Network wants to do targeted damage to BTC.

Lightning Labs Coordinating Attacks on Bitcoin?

Programmer and bitcoiner “Magoo PhD” has hit out at Lightning Labs after the development studio released a video explaining planned features of the Taro protocol. Taro creates the possibility to display additional currencies on the Lightning Network.

Our focus as Lightning Labs is on the stablecoins because we see huge demand there.

Explains Lightning Labs CEO Elizabeth Stark. The development studio does not want to appear as the publisher of the stablecoins itself, but only wants to provide the necessary technology.

We are agnostic. We do not issue stablecoins like a US dollar on Lightning. We just build the technology. Many people are very interested in issuing stablecoins over Bitcoin .

Execute Stark. The Taro Protocol is expected to be fully developed next year. Stablecoins can then be issued via the Bitcoin mainnet and sent quickly and inexpensively via Lightning a short time later.

Stark believes he can “bitcoinize” the economy this way. She wants to turn Bitcoin into a financial instrument in various regions of the world through the new use. Magoo disagrees.. She writes on Twitter :

So Lightning Labs is a government funded attack on Bitcoin.

He then explains his criticism as follows:

Centrally issued and redeemed USD stablecoins on Lightning bring massive regulatory risk to Lightning.

Authorities associated with Lightning

Magoo suspects that if Taro takes the step to issue stablecoins, government control over the Bitcoin mainnet and Lightning Network will reach intolerable proportions.

No user will ever be able to use stablecoins in this way without receiving specific permission from the authorities to do so.

Explains Magoo in a podcast . She believes the stablecoins are issued by central authorities and can then be controlled remotely by the issuers and frozen at will.

This puts the fundamental idea of decentralizing the Bitcoin network in jeopardy. Magoo therefore suspects a targeted, state-sponsored action behind this development – an attack on Bitcoin.

She sees Lightning Labs’ membership in the World Economic Forum, which is known for its vehemently anti-crypto positions, as evidence for this thesis. But Magoo also makes it clear: The problem is not the Lightning network itself, but a lack of loyalty by the central developers to the basic principles of the project.