OpenNode is a lightning network software company that rejected Roger ver’s $1.25million offer to change their work from Bitcoin (BTC), to Bitcoin Cash (BCH). OpenNode stated, “Our vision of a better and more open financial system can only be achieved with Bitcoin.”
Roger Ver attacked the Lightning Network and its followers in a video. He pointed out that on-chain scaling of Bitcoin Cash using Lightning Network would take more than 100 years while off-chain scaling would take only 40 years.
OpenNode, a software company, focuses on creating software that makes it simple to deploy Lightning Network channels for retailers. Lightning Network is a set of smart contracts that allows users to transact bitcoin with no need for cluttering the main Bitcoin network. These transactions are fast and almost free.
Recently, the company received a $1.25m seed investment from Tim Draper. This is a well-known American venture capitalist. Ver mentions that he doesn’t want his company to be at the end of Draper’s investment.
Tim Draper: “I don’t want to be on the other side of an investment. He is one of the most intelligent and skilled investors in the world. Tim may not have done the math. Are you willing to wait for decades before onboarding people? This is a huge mistake. Lightning Network would be far more efficient on a system without a limit on the block size, such as Bitcoin Cash, than it is on BTC. ”
Ver is referring to the spreadsheet Ver created that illustrates how long it would take Lightning Network to scale globally. This mix is later enhanced with Bitcoin Cash and includes Moore’s Laws and Nielsen’s Laws. These laws are widely accepted as proving that computing power doubles every 18 months.
Ver’s analysis has a few flaws. He assumed that BTC and BCH would remain stagnant with no updates or upgrades over the next 100 year. Ver also fails to consider the significant gains made to the Lightning Network which is already gaining traction.
Get the Offer
Ver confidently made these assumptions and offered to OpenNode for their technology on BitcoinCash to be developed.
“I have an offer to the OpenNode team, Tim Draper. Draper invested $1.25million in OpenNode, which is a Bitcoin-only payments processing company. Tim, I am offering to match your $1.25million investment in OpenNode. There are no equity restrictions. I don’t require any equity. OpenNode must start processing payments for Bitcoin Cash. This version of Bitcoin has the most Bitcoin-ness.
OpenNodes’ recent split between Bitcoin Cash (Bitcoin Cash) and Bitcoin S.V. might be one reason for OpenNodes’s decline. According to the firm they chose BTC for these reasons only:
“Bitcoin’s blockchain is a decentralized cryptographic network that has not been compromised or hacked since its inception. It is the longest-running, most secure, and liquid blockchain. Because we want to protect our users, we only offer businesses the ability to accept Bitcoin.
BTC vs BCH
BCH supporters believe that BCH’s network represents Satoshi Nakamoto’s vision of peer to peer electronic cash. They claim that BTC supporters lack “common sense” to implement changes to improve the protocol. Roger Ver’s criticisms are also based on a similar sentiment.
The BTC community asserts that BCH is trying mislead people by its revisionist history. By buying domains like Bitcoin.com or the Twitter handle @Bitcoin they are trying to make it seem that Bitcoin cash is the original Bitcoin.
We all know which OpenNode side it is. Every true believer in Bitcoin believes that the protocol can scale to become one of the most widely-used payment options on the planet, despite its limitations.
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