I first heard about Jack Mallers in January 2020 and when I heard what he was doing with Strike, I immediately posted the following message on Facebook:
I continued to look at everything I could find on him and his company.
Jack Mallers is a very smart 27-year-old with a hoodie that works outside of women’s clothing wearing Crocs, and he is proud of it! How do I know this? Because he he said stay on CNBC. Bitcoiners love its bottom-up character, and its deep love, enthusiasm and commitment to Bitcoin. Its contributions to the Bitcoin community will also be felt throughout eternity on the Bitcoin platform.
Lightning Network’s founding company, Zap Inc., was founded by Jack Mallers in 2019, which includes Mallers’ mobile payment program, Strike.
Strike is a paid mobile app like Cash App except that the Strike app works on the Lightning Network. Mobile payment programs, such as Cash App, operate on their locked networks. Strike operates on an open payment network, Lightning. I get into the importance of open payment networks later in this article.
The most important note about why Strike is able to send payments indiscriminately using bitcoin is because bitcoin is a asset that has 24/7 currencies. Instead, Strike is repaying and repaying Strike accounts using bitcoin as a shipping vehicle through the Lightning Network.
I could end this article right now but I still read to explain in more detail about Strike, including the analogy I like to use to help people understand Strike, Network Lightning and open networks.
Here is Jack Mallers’ description of how Strike works on one of Saifedean Ammous’s most recent podcasts:
There are three legs in which Strike sends money to the Lightning Network:
- US dollars are deducted from your Strike account and there is a bitcoin-to-USD exchange where bitcoin buys US dollars.
- Bitcoin-to-bitcoin payments are made using the Lightning Network to accelerate and fulfill the cost of carrying the tool.
- The conversion of bitcoin-to-euro then occurs when Strike sells bitcoin on the Euro. Jack smiles and says there is no dollar value up to the Euro that Strike is using. Beating only uses “bitcoin / dollar” and “bitcoin / euro” to facilitate the conversion of the dollar to the euro.
In short, US dollars (fiat currencies) magically convert to bitcoin and bitcoin magically converts to any currency you want in the other direction.
As science fiction writer Arthur C. Clarke puts it, “no advanced technology is inseparable from magic.”
My definition of “under farm” The normie hit could be: Strike magically sends money to Network Lightning using a magical bitcoin car.
Strike uses Lightning Network which solves two payment problems in the first phase, Bitcoin.
- The Lightning Network solves the problem of Bitcoin transaction time
- The Lightning Network solves the problem of the volatile price of Bitcoin.
Mallers’ vision of how the Strike could work out in terms of the two pay problems came from the epiphanies he was on vacation in Paris. He realized that these two changes are two different variations that Visa makes. His second epiphany was able to use bitcoin as a cost car around the world.
Mallers’ writings made him a digital genius that resides outside any party, company or government. Bitcoin meets the basic requirements for this currency.
Strike is doing what Google, Amazon and Facebook did on open networks we know as internet, the Transmission Control Protocol / Internet Protocol (TCIP). The internet is an open communication platform where the best companies with the best users compete with their competitors. Open networks allow for real, free market competition. Strike was connected to the open money network, Bitcoin, through the open Layer 2 network of Bitcoin, the Lighting Network, to send money around the world for free. Free, you ask?!? Yes, for free. So how does Strike make money without paying a fine? Strike does not have to pay any fines because Mallers do not charge for their services, and this is possible because of the money his company makes. How does Strike earn money? Like all business executives Mallers may not be able to disclose its secret sauce, but one way his company makes money is through its Strike debit card partnership with Visa, where it collects all the currency exchanges. His company also charges commercial fees as a source of revenue.
Reducing his fine to zero, Mallers forces everyone who competes to start again. Now it is up to each competitor to try to win the Strike with his or her user skills. We are about to have as much competition as we had on the open internet platform between MySpace and Facebook. Some of the many “MySpace-like” competitors are Western Union, Visa and MasterCard. Competitors use their own closed networks and pay rails – which is not as good as open payment networks, Lightning. Strike is able to work with very little cost due to its use of the Lightning Network. Visa, MasterCard and Western Union operate at a much higher cost and there is no chance of reducing their costs because they would not earn any money.
Strike’s use of the Lightning Network, allows its company to partner with any other company that has decided to use the Lightning Network. This is a powerful idea because the company gets better every time a new company connects their company to the Lightning Network. This is because the services offered by other Lightning Network companies may be combined with Strike operations, without signing any agreements or acting with caution on companies that work with Strike.
The Lightning Network is reminiscent of Linux operating systems, which were also open source (OS). Prior to Linux, Microsoft had control over their locksmiths and the people who wanted to use their software were at the mercy of Microsoft with the amount of money they paid for their products and services. Open Linux operating systems allow competing with Microsoft blockchain machines. Companies that previously used Microsoft OS can now use Linux OS as an opportunity to discuss the cost of Microsoft products and services. The open-source Linux code allowed companies that had previously been compliant with Microsoft’s requirements to opt out of shut-off machines and use low-cost, open-source, Linux-based machines.
The most important thing that Strike achieves is paying in real time, for free between parties. Prior to this, people from poor countries like El Salvador traveled many miles to Western Union to send and receive their fiat money. Along the way, El Salvadorans expect money laundering to be carried out by thugs who want a 25% reduction in any amount they have to send. Western Union then receives a 5% or more fine from El Salvadorian. So if El Salvadorian started with $ 100, he lost $ 25 to the robbers and $ 5 to Western Union and now has only $ 70 to send to his family. The minimum wage for an El Salvadorian man is about $ 242 a month to determine the need for a few El Salvadoran workers to be able to send $ 100, all, through Strike for free. This is why Strike and Lightning Network is so complex!
As soon as I heard what Jack Mallers’ company was doing, I immediately phoned a former banker who was over 20 years old, telling him that Strike was seizing banks and payment methods. He told me that the banks were already using Venmo and Zelle for similar things. Little did they know that unlike Zelle and Venmo, which would be similar to Microsoft’s closed systems, Strike is integrated into the “Linux-like open-source operating system,” Lightning Network. I personally believe that Strike will enter many paying areas. In my opinion, Strike will be paying for the network as Amazon was a retailer. Grab your popcorn and see the Bitcoin game ideas continue to play. As Jack would say, “Pawn to E4, your payment methods around the world.”
This is Jeremy Garcia’s guest post. The ideas offered are their own and do not reflect BTC Inc either Bitcoin Magazine.
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