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The Academic Perspective on Bitcoin and the Lightning Network

The Academic Perspective

The academic perspective on Bitcoin and the Lightning Network is vast. There are many papers written about both technologies, but we'll focus on two in particular: "Bitcoin: A Peer-to-Peer Electronic Cash System" by Satoshi Nakamoto and "Lightning Networks" by Joseph Poon and Thaddeus Dryja (the original authors). Both of these papers were published in 2008, which means they were written before many people had heard of Bitcoin or even blockchain technology.

In his paper, Nakamoto describes how transactions work between two parties without an intermediary such as a bank or credit card company; he also explains how nodes keep track of balances in each account so that users can send money back and forth securely without needing any third party verification system like PayPal or Venmo. He calls this system "electronic cash."

Kali2Zona 2y ago

7 of 10

The Economic Perspective on Bitcoin and the Lightning Network

According to economist and professor Lawrence H. White, there are several economic implications of Bitcoin and the Lightning Network. The first is that it could have a significant impact on monetary systems around the world. This is because it's a new form of money that people can use without having any other currency or assets.

White also notes that Bitcoin may be deflationary in nature--meaning its value will increase over time--because there will only ever be 21 million bitcoins created (the last one being mined sometime around 2140). However, he also points out that if this were true then we would expect all goods and services to decrease in price as well but they don't; instead they rise steadily year after year despite inflationary pressures such as rising wages or lower production costs due to technology improvements or other factors like globalization which make goods cheaper overseas than domestically.

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Kali2Zona 2y ago

8 of 10

The Social Perspective on Bitcoin and the Lightning Network

Bitcoin and the Lightning Network have the potential to impact global communities in a variety of ways. The first is through improved financial inclusion, which would allow people from all over the world to have access to a secure and affordable payment system. This could lead to positive social change as well as an increase in economic activity for those who currently lack access to traditional banking services.

With these benefits come some risks, however: if you don't know what you're doing with cryptocurrencies then it's easy for someone else (like a hacker) who does know what they're doing with cryptocurrencies--and this can result in theft or loss of funds stored on your computer or phone!

Kali2Zona 2y ago

Part 9 of 10

Conclusion

In this article, we explored Bitcoin and the Lightning Network on NOSTR. We learned that Bitcoin is a decentralized cryptocurrency that was created by Satoshi Nakamoto in 2009. The network uses blockchain technology to record transactions between two parties without a central authority or third party involved.

We also learned about some of the benefits of using cryptocurrencies like Bitcoin, including: (see Part 10 of 10)

Kali2Zona 2y ago

Part 10 of 10

Security - Because it's decentralized and not controlled by any government or bank, there's no risk of fraud or identity theft when you make purchases with your cryptocurrency wallet (or "NOSTR").

Privacy - Your name isn't linked to your account number when making payments online with NOSTR; only an encrypted version of each transaction is recorded on an open ledger called "blockchain." This means no one can see how much money you have in your account unless they know both its public key (which acts as an address) and private key (which allows access).