Part 2 Twitter’s moves in Bitcoin

https://dailyfintech.com/2021/09/14/part-2-twitters-moves-in-bitcoin/
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Jack Dorsey, CEO of Twitter, is on record as a Bitcoin fan. As such he is also a fan of Lightning Network and on June 11 he tweeted that “it is only a matter of time” to integrate the Lightning Network into Twitter.

For more on Lightning Network, see our 4-part series

This is a radical stance for the  CEO of a publicly traded social media business with a market cap over $50 billion and the implications are significant.

Twitter, a centralized system,  and Bitcoin, a decentralized system, would make odd bedfellows. Which brings us to Bluesky, Twitter’s decentralized social network project which Jack Dorsey has billed as a “standard for the public conversation layer of the internet.”

This is a fundamentally different approach from Mark Zuckerberg and Facebook Diem:

  • coopting Bitcoin rather than creating a corporate currency.
  • creating a decentralized social network rather relying on centralized governance.

There are two possible takes on this:

Either,  negative = two big dreams – Lightning Network and Bluesky – do not make reality.

Or, positive = Twitter are heading in the right direction and they know how to get there.

My take is positive. Re the negative, we shall have to wait and see if they execute well.

Bluesky currently looks like a mashup of three well-known decentralized systems:

  • ActivityPub, which powers the social network Mastodon
  • XMPP, the messaging standard which powers WhatsApp 
  • Solid, a decentralization project led by World Wide Web creator Sir Tim Berners-Lee.

Imagine if they pull this off. Creators will move to Bluesky as they do not like the control and fees of centralised systems. Then Twitter monetise via payments over Lightning Network.

Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

Part 1

Part 2

Part 3

Part 4

Some may not be published yet.

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https://dailyfintech.com/2021/09/14/part-2-twitters-moves-in-bitcoin/