There is a legendary story about cryptocurrency. It is about a man who bought a couple of pizzas in exchange of 10000 Bitcoin currencies in the year 2010 to manifest the workings of electronic currencies. The same guy is on his game once again.
In the recent times, a developer of Bitcoin named Hanyecz, was seeking to examine the network named “Lightning Network”, which is a technology that resembles Blockchain technology, and has been launched with an objective to quicken the speed of crypto currency transactions. Hanyecz is the guy who bought two pizzas and paid with Bitcoin, or to be specific, 0.00649 BTC which is equivalent to 67 dollars. The transaction of payment cost him about 6 US cents. This purchasing stunt was performed in 2010. It was the first buying that was met with cryptocurrencies. This purchase proved the fact that the crypto currency Bitcoin can be successfully used as means of payment and/or exchanges while buying or selling ordinary stuff like a couple of pizzas. This proof suffered a setback and made it quite difficult and expensive to conduct daily purchases, when the cost of transaction shot up to an exorbitant rate of 55 dollars per transaction, as confirmed by the data and information provider BitInfoCharts. As a result, developers and designers including the team at Lightning Network are striving to develop and work on strategies and techniques, in order to resolve the issue of high transaction costs.
In an interview, Hanyecz stated that a cryptocurrency shareholder can still use Bitcoin to purchase pizza, contrary to popular belief. But if one has to pay a transaction cost of 100 dollars to buy pizza that’s worth 50 dollars, then that would be impractical. The team of developers at Lightning Network, are working hard to upgrade the security of the network and make it more and more like the Blockchain technology of Bitcoin to facilitate instantaneous transfers and eliminate the delay caused by confirmation.
Risk of congestion
The working of Lightning network involves the opening of a two channel through payment of funds is made between two parties without making the transactions public, which gets rid of unnecessary costs and delays. After closing the payment channel, the remaining balance gets recorded instead of the entire history of transaction. However, this is still in beta stage and wrought with quite a few technical glitches. A payment channel was opened between Hanyecz and a blockchain supporter, and the pizza order was placed. The delivery was to be done on the condition that Hanyecz would show the initial and latter 4 characters to the delivery boy, which if matched with the code of the blockchain supporter, then the delivery will be made in return of successful payment.
This day is honoured as the Bitcoin-Pizza Day, wherein 30 dollars of Bitcoin paid to the Pizza store now stand at 100 million dollars.