Pro-XRP Attorney Challenges Lightning Network’s Security

Pro-XRP Attorney Challenges Lightning Network’s Security

Renowned pro-XRP attorney and cryptocurrency advocate, John Deaton, has recently voiced his critique of the Lightning Network, raising questions about its efficacy when compared to the “Spend The Bits” protocol on the XRP Ledger (XRPL). The Lightning Network, a layer-2 scaling solution for Bitcoin, is designed to enhance the scalability and efficiency of Bitcoin transactions, primarily by enabling off-chain, peer-to-peer transactions.

Deaton, who disclosed his position as an angel investor in Spend the Bits and serves as its chief legal officer in an October 21 post, has previously extolled the virtues of Spend The Bits as an alternative to Lightning within the Bitcoin ecosystem. Back in September, the pro-XRP attorney lauded Spend The Bits, describing it as a more secure avenue for utilizing Bitcoin as opposed to the Lightning Network.

The timing of Deaton’s recent criticism coincides with a tweet from the online crypto investigator WhaleWire, which raised concerns about a potential security vulnerability discovered within the Lightning Network.

This revelation prompted a developer to withdraw from the project, alleging that deliberate vulnerabilities existed within the Lightning Network’s code, potentially granting attackers complete control over the network. Furthermore, the fact that significant backers of the Lightning Network are also linked to entities like Tether, Bitfinex, and BlockStream has fueled suspicions surrounding the network’s security and trustworthiness.

As of the latest available data, the Lightning Network boasts a network capacity of 5,338 BTC, according to 1ML. However, this figure has raised concerns about the network’s viability and long-term sustainability, particularly given a 15% reduction in capacity over the past three months. These concerns are amplifying the ongoing debate about the future of Bitcoin’s scaling solutions.

DeFi Advocacy Challenges Government Surveillance in Landmark Case

In addition to Deaton’s criticism and the current discussions about Lightning Network, a cryptocurrency advocacy group known as the DeFi Education Fund (DEF) has entered the legal conflict. On October 20, DEF submitted an amicus brief in support of James Harper’s appeal against the IRS (Internal Revenue Service) with the United States Court of Appeals for the First Circuit. This move is part of a larger attempt to limit the government’s unlimited access to users’ transaction history on cryptocurrency platforms, which became a source of concern after Coinbase handed over data from over 14,000 customers to the IRS in response to a 2017 court order.

DEF has argued that the Fourth Amendment of the U.S. Constitution, which protects individuals from unreasonable government searches and seizures, needs to be reinterpreted and updated in light of the unique privacy challenges posed by blockchain technology. The group cited the Carpenter vs. United States case as evidence that the Fourth Amendment should limit the government’s ability to obtain data from third-party platforms such as Coinbase.

Highlighting the traceability of cryptocurrency transactions on public ledgers, DEF pointed out the potential to link real-life identities to pseudonymous addresses, thereby impacting the privacy of all 14,355 users involved in the Coinbase case. This level of insight into users’ lives far exceeds what traditional banking records can provide, according to the advocacy group.

The DeFi Education Fund’s purpose is to educate politicians on the benefits of decentralized finance and to provide legislative clarity for the DeFi ecosystem. The Harper vs. Werfel and IRS Services case is expected to set a significant precedent in the domain of digital privacy rights and law enforcement tactics in the United States, demonstrating the complicated interplay between technology and constitutional rights in the modern day.

DISCLAIMER: It's important to know that the stories on this blog are not meant to serve as, nor should it be construed as, advice in legal, tax, investment, financial, or any other professional context. You should only invest an amount that you are prepared to lose, and it's advisable to consult with an independent financial expert if you're uncertain. For more information, kindly consult the terms of service and explore the assistance and support areas provided by the issuing or advertising entity. Our website is dedicated to accurate and unbiased reporting, but it's important to note that market circumstances may change rapidly. Additionally, please be aware that some (but not all) articles on our site are sponsored or paid posts.

Jesse Rosenbalm
About Author

Jesse Rosenbalm

Jesse Rosenbalm stands out in the crypto journalism realm, seamlessly blending intricate blockchain concepts with accessible prose. Known for his deep dives and accurate forecasting, Jesse's articles are a must-read for both novices and experts. As crypto trends shift, his insightful writings remain a beacon in the digital currency space.

Leave a Reply

Your email address will not be published. Required fields are marked *

Skip to content