John Deaton has expressed concerns over potential vulnerabilities in the Bitcoin Lightning Network’s code. An advocate for cryptocurrency and attorney by profession, Deaton has previously voiced his preference for the “Spend The Bits” protocol on the XRP Ledger (XRPL) over the Lightning Network. The latter serves as a second-layer scaling solution intended to enhance Bitcoin’s scalability by facilitating off-chain transactions directly between users.
On October 21, via a post on platform X (previously known as Twitter), Deaton disclosed his role as both an angel investor in Spend the Bits and its principal legal advisor. He has, in the past, championed Spend The Bits as a safer option than the Lightning Network for Bitcoin transactions. His disclosure came conveniently around the same time an online cryptocurrency investigator, WhaleWire, highlighted a significant security flaw found in the Lightning Network. This issue led to a developer departing from the project, voicing concerns over intentional vulnerabilities that could give attackers full control over the network. Observers have noted that some key Lightning Network supporters are also linked to Tether, Bitfinex, and BlockStream, which has only amplified the apprehensions about the network’s security.
At present, the Lightning Network boasts a capacity of 5,338 BTC as per data from 1ML. However, confidence in its long-term sustainability has been shaken, given that its capacity has witnessed a drop of 15% in just the last quarter.