Signatories to the New York agreement on the implementation of the Segregated Witness protocol and the increase of block size refused to implement the hardfork due to the lack of consensus within the community, and this proves that the basic bitcoin protocol is digital gold, and not just an improved version of PayPal or Visa payment systems. Kyle Torpey writes about this for Forbes.
Part of the community considers bitcoin as an asset of a new class, unattainable for governments, banks and third parties. Others consider bitcoin to be an innovative payment system.
Representatives of the first camp oppose the controversial changes in the system, in order to avoid the risk of non-fulfillment of obligations of one of the parties associated with the preservation of value in a digital asset. Their opponents see in hardfork the opportunity to increase billing performance and reduce transaction fees.
In addition, a new version of PayPal can indeed be developed on top of the basic bitcoin protocol, but only if the community stays true to the idea of digital gold. Otherwise, you can not create a more secure system based on less secure.
— Kyle Torpey (@kyletorpey) 8 ноября 2017 г.
Torpey is convinced that bitcoin is digital gold, but you can still run an improved and reliable version of PayPal on top of Bitcoin.
The most likely version of the "improved PayPal" is the Lightning Network technology, which allows you to send cached transactions using special payment channels, and not directly through the block system. In this case, the detachment acts as a "court" for resolving disputes.
In addition to the two-tier payment solution, the Lightning Network also contains a number of compromise technological characteristics in the context of centralizing confidentiality and reducing transaction costs.
For example, representatives of ZCash presented a draft of a reliable payment system on top of the bitcoin block or ZCash blockchain, which will not be able to freeze users' funds and will not know about the purpose of transactions.
Although the idea of blockchain is to eliminate intermediaries, Kyle Torpey believes that, perhaps, one should think about the advisability of developing a centralized model over a decentralized basis. Such a payment system will not be able to steal users' funds, prohibit the conduct of transactions or establish surveillance over network members.
Crypto currency is not suitable for making payments, unless its liquidity is provided by those who consider it as a means of preserving value. With the growth of liquidity, the probability that one transaction will greatly affect the price of an asset decreases, as volatility decreases.
A more secure payment system will be developed precisely on the basis of a highly liquid asset.