Find the best broker for your trading or investing needs Few events are as well known in the short history of bitcoin as Pizza Day, when the first real-world transaction was made using the cryptocurrency, then very much in its infancy. On May 22, 2010, software developer Laszlo Hanyecz paid 10,000 bitcoin for two Papa John’s pizzas.
On Feb. 25, 2018, he did it again, this time buying two pies using the lightning network.
The lightning network is a second-layer bitcoin application that’s in the very early stages of development and – if it lives up to the hype – adoption. It was proposed by Joseph Poon and Thaddeus Dryja in a 2015 whitepaper as a way to solve bitcoin’s notorious scalability problem: the blockchain’s throughput maxes out at a handful of transactions per second, compared to tens of thousands for major credit card networks.
This leads to long wait times and contributes to occasional spikes in transaction fees. (See also, How Bitcoin Works.) Hanyecz had to pay rather less for his ‘za this time around, 0.00649 bitcoin.
The 2010 pizza transaction has become an object of fascination, not just because it marked bitcoin’s first halting step into the tangible economy, but because of how much that pizza would be worth today. @bitcoin_pizza, a twitter account that broadcasts the dollar value of the pizza to over 6,000 followers every day, informs us that on Feb. Read more from investopedia.com…
thumbnail courtesy of investopedia.com