- Bitcoin's Payment Capability and The Lightning Network
- Blockchain as a Universal Solution
- NFTs and Digital Ownership
Success in crypto trading often hinges on a deep understanding of fundamentals, sharp technical analysis skills, or access to market intelligence. However, the driving force behind price movement frequently comes down to market narratives. In 2024, several crypto narratives have taken center stage. Memecoins, decentralized physical infrastructure networks (DePIN), and real-world asset (RWA) tokenization are just some examples. The dominant narrative is the approval of spot Bitcoin and Ether-based exchange-traded funds (ETFs). However, not all trends have lived up to expectations.
Bitcoin's Payment Capability and The Lightning Network
In 2008, Satoshi Nakamoto created Bitcoin to be an independent digital currency. However, the network's slow transaction speeds remain a hurdle for its use in payments. The Lightning Network (LN) is a layer-2 protocol developed to accelerate transactions on the Bitcoin blockchain, capable of processing up to 1,000,000 TPS. However, the adoption of Lightning technology faces challenges related to privacy and network liquidity, making global acceptance difficult.
Blockchain as a Universal Solution
'Put it on a blockchain' has long been a term used in business to attract attention. In 2017, during the cryptocurrency boom, blockchain’s popularity surged, and it was advertised as a solution to various business problems. However, in practice, many projects, like PetChain or Dentacoin, did not meet their goals. The hype around blockchain overshadowed its real benefits, and it became clear that not all problems require a blockchain solution.
NFTs and Digital Ownership
NFTs exploded in 2021, attracting significant attention and investment. These tokens offered proof of ownership over digital content. The purchase of Jack Dorsey’s first tweet for $2.9 million became a landmark event. However, its current value is much lower. The massive interest in NFTs quickly faded due to the lack of copyright protection and numerous scams. Despite the decline, NFTs still have potential applications in areas like real estate, the academic environment, and anti-counterfeit systems.
These cryptocurrency narratives demonstrate that not all predictions hold true. The Lightning Network, blockchain, and NFTs are still evolving, finding their path towards mass adoption and improvement.
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