Ex-Fb exec David Marcus now constructing on Lightning Community

Ex-Fb exec David Marcus now constructing on Lightning Community

  • David Marcus has introduced that he has now launched a brand new startup referred to as Lightspark which is able to concentrate on constructing on Lightning Community on the Bitcoin blockchain.
  • Lightspark has already obtained $175 million from the who’s who of the VC trade together with Andreessen Horowitz and Paradigm.

At one level, it appeared like Fb was sure to develop into one of many greatest gamers within the stablecoin trade with its Libra (after which Diem) cryptocurrency. This fell by way of badly and Fb was compelled to promote it off. David Marcus, the one who led the initiative, and was previously the CEO of PayPal left Fb and he has now revealed that he’s constructing on the blockchain, particularly on Bitcoin.

Marcus revealed on Twitter that he had began an organization referred to as Lightspark, “to discover, construct and lengthen the capabilities and utility of Bitcoin. As a primary step, we’re actively assembling a workforce to dive deeper into the Lightning Community.”

The Lightning Community is a layer on Bitcoin that facilitates quick and low-cost transactions. It’s thought of by many as a Layer 2 to Bitcoin’s Layer 1, however this has been disputed. Lightning permits two counterparties to open an off-chain funds channel the place they’ll ship an infinite variety of BTC between them. As soon as they’re accomplished, nonetheless lengthy it takes and so they shut the channel down, the principle BTC blockchain is just up to date with a small quantity of information concerning the transactions.

There’s additionally the difficulty of safety. Lightning has been confirmed to be vulnerable to assaults by malicious actors. A technique that they’ll assault it’s by way of the ‘Flood & Loot‘ technique found by Hebrew College during which looters spam the community with transactions, making it doable to steal any funds which were unclaimed by the given deadline.

Nonetheless, Marcus believes the longer term lies in Lightning Community, and with the résumé he has, you possibly can’t put it past him to realize what has been an elusive dream for a decade – Bitcoin funds. He was beforehand CEO of PayPal, a board member at Coinbase, and the top of Messenger and later Diem stablecoin at Fb.

Marcus has managed to carry onboard among the greatest cryptocurrency buyers. They embody Andreessen Horowitz, Paradigm (the crypto VC agency based by Coinbase co-founder Fred Ehrsam), Ribbit Capital (an early investor in FTX, Coinbase, Ethereum, Uniswap), and Matrix Companions, a non-public fairness agency with investments in Oculus, Postmates, and Zendesk.

According to folks conversant in the corporate, Marcus has attracted $175 million.

Associated: David Marcus leaves Fb – is that this the start of the tip for Diem?

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