- Sztorc criticizes federated models; Gladstein shifts viewpoint on Lightning.
- Debate centers on Bitcoin scaling solutions.
- Community sentiment on scaling models evolves.
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Paul Sztorc and Alex Gladstein engaged in a contentious Bitcoin scaling debate in June 2025, addressing the future role of the Lightning Network.
The debate highlights differing visions for Bitcoin’s scaling, influencing future technical and governance discussions.
Sztorc, CEO of LayerTwoLabs, and Gladstein, CSO at Human Rights Foundation, debated stronger self-custody solutions over federated models. Gladstein altered his stance, advocating a revised role for the Lightning Network in scaling Bitcoin effectively. Both emphasized risks in federated solutions, contradicting traditional custodial approaches. Critics argue these solutions conflict with Bitcoin’s foundational principles.
“Anyone who still shills LN in 2025 is kind of an idiot, I agree.”
— Paul Sztorc, CEO, LayerTwoLabs
No immediate market changes followed the debate, but the discussion fueled increased community debate. Impacts on BTC’s scalability remain pivotal, with unresolved tensions over centralization and custodial models. The debate could catalyze renewed development interest, potentially revisiting proposals for hard forks or technical innovations.
As of now, regulatory bodies like the SEC or CFTC have not reacted. However, historical precedent shows such debates can precede major network shifts or hard forks. Developers are expected to continue exploring alternatives like Drivechains, reflecting on trust-minimization and transparency.
While no immediate funding changes or institutional actions were noted, persistent scrutiny of Bitcoin’s future scaling solutions continues. The debate underscores ongoing tensions around integrating scalable yet decentralized networks within Bitcoin’s ecosystem.
