How Bitcoin fights against censorship
What would it cost to move a billion dollars in gold from the US to a country like China? Besides considering the weight of the asset, how easy would it be? How will censorship both online and in the air affect such a transaction?
One way to answer the question above is that a billion dollars can be moved from one nation-state to another without any interference using the Bitcoin network. As a guest at the Bitcoin and Lightning for Corporation event, Michael Saylor, the Executive Chairman of MicroStrategy, said that one of the essences of Bitcoin is its ability to be censorship resistant.
Moving a billion dollars of gold to a state such as Kazakhstan “would be a worrisome thing” as one would likely require a battleship or a complex air transportation process.
The fear in doing this is that the nation-state can resort to gunning down the aircraft in order to interfere with such a transaction, he added. On the other hand, Bitcoin can do that comfortably and anyone who dares to stop it can try; however, the probability of purchasing all Bitcoin nodes to obstruct a transaction is extremely low. “Bitcoin is now censorship-resistant; it is a bulletproof way to move incredible amounts of value around.”
He noted that there has never been a better and faster way in the history of humanity “to move a billion dollars of value”. However, he also believes that while “Bitcoin itself is emerging as a great technology achievement” technocrats will be won over via the use of Lightning Network.
The importance of Lightning Network
The Lightning Network is a second-layer payment protocol that operates on top of the Bitcoin blockchain. It allows for fast, cheap, and scalable payments between users without the need to broadcast transactions to the entire network.
The Chairman stated that the Lightning Network has an advantage over the traditional banking system as it utilizes the Bitcoin network, resulting in faster and more cost-effective transactions.
While it can take “30 to 45 days for final settlement” to be achieved in today’s banking infrastructure, with “two and a half percent of the money” used as a fee, on Lightning Network, transactions will take approximately 60 seconds with a minimal fee.
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