- August 25, 2022
Paolo Ardoino on the Bitcoin Lightning Network and Crypto Trends
Which crypto trends are worth keeping an eye on? We spoke with Paolo Ardoino, the CTO of Bitfinex, about the most exciting trends in the crypto space.
Paolo Ardoino is a passionate software developer and crypto expert. In 2014, the Italian-born joined the Bitfinex exchange, and in 2016 he took the position of CTO. Ardoino explained to us which factors influence the Bitcoin price and which Technologies could revolutionize the crypto market.
What Bitcoin trends should we keep an eye on?
Since the beginning of 2022, we have been experiencing a massive sell-off in the stock and crypto markets. What is your opinion on the current situation? Will we see another bull market in the near future?
Ardoino: The cryptocurrency markets are against the background of a the impending global recession and further interest rate hikes by central banks are still under pressure. Nevertheless, there are signs that Bitcoin stocks are declining on the exchanges, which is probably due to a long-term price support.
Are there any trends or cryptocurrencies that we should keep an eye on?
Ardoino: The adoption of crypto payments is definitely something to keep an eye on. First of all, the Bitcoin Lightning Network, a second-layer protocol designed to support micropayment channels on a large scale. This can relieve the Bitcoin network and reduce the associated transaction fees.
The Bitcoin Lightning Network was developed in 2015 by Joseph Poon and Thaddeus Dryja and is designed to solve the scalability problem of Bitcoin.
If you are not yet familiar with the term “second layer”: with a second layer, the transactions are processed outside the blockchain and then sent back to the BTC blockchain. Since no mining is necessary for the validation of the second-layer transactions, the Costs for a Lightning Network transaction currently at just one cent. For comparison, a normal BTC transaction currently costs around $ 1.50. In addition, the Lightning Network Instant Transactions. Ardoino believes that the Lightning Network will be the future of e-payment opens.
Ardoino: “The Lightning Network could become the ideal platform for transactions in online shopping. Users could set up wallets with online retailers and pay for an item relatively easily. Once the Lightning Network is ready for the mainstream, it will completely change the way remittances, e-commerce purchases and peer-to-peer payments work.“
Crypto Loans and the Internet of Things
How could crypto affect our lives in the future?
“I expect more innovations in crypto lending, especially with regard to the use of digital tokens and assets as collateral for loans. We even see Non Fungible Tokens (NFTs) being used as loan collateral. This will be a new trend this year.“
In addition, Ardoino explained to us that the ”Internet of things (IOT)” will become one of the most significant trends. For example, refrigerators could detect when we no longer have enough milk and reorder it. Ardoino assumes that the Communication skills of these technologies will grow exponentially and will play an important role in the cities and homes of the future.
Thank you, Ardoino!
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