The Escalation of On-Chain Fees and the Impending Shift to Bitcoin's LN and Sidechains.

In the dynamic world of cryptocurrency, a recent surge in on-chain fees has sparked concerns among enthusiasts. I must shed light on the increasing on-chain transaction fees within the last 24 hours, surpassing $5 for transactions involving approximately 100 satoshis or more. This development raises questions about the future of on-chain transactions and the growing need for alternative solutions.

One inevitable question arises: when will more exchanges embrace the Lightning Network (LN), and why haven't they done so already? One plausible concern could be the fear of falling victim to LN attacks. As larger nodes join the network, hackers might find it profitable to wait for increased liquidity before striking, posing a potential threat to the security of the system.

Another perspective suggests that exchanges might be hesitant to adopt LN due to financial considerations. The prospect of funding high-salary teams, including developers and software engineers, for the operation and maintenance of an LN service may be a deterrent.

Alternatively, it could be a strategic move based on the realization that the traditional business model of many exchanges, relying on altcoins, may become obsolete. If users recognize the efficiency of BTC LN, a shift back to Bitcoin could not only cut into the revenue stream of exchanges but also challenge the narrative that positioned altcoins as solutions to Bitcoin's perceived shortcomings since 2017.

The emergence of alternatives to on-chain transactions is becoming apparent, with solutions like Chivo enabling direct onboarding of dollars to BTC-LN. This not only reduces liquidity from altcoins touting cheap transactions but also signals potential altcoin sell-offs with increased LN adoption by more exchanges.

While the allure of altcoins driven by human greed persists, a shift towards concentrating on Bitcoin sidechains, as opposed to independent altcoins, seems plausible for the future. The prospect of Bitcoin sidechains may signal the beginning of the end for conventional altcoin narratives.

Ethereum, long considered the second altcoin, faces potential disruption with the adoption of sidechains like Rootstock, which employs the Solidity programming language. The move to Rootstock could eliminate the need for the Ethereum ecosystem, especially considering the vulnerabilities identified in Solidity smart contracts. The adoption of Rootstock, anchored by the PowHSM security chip and Bitcoin miners, holds promise, especially with the anticipated implementation of BIP300 and BIP301, bringing true decentralization to the sidechain.

Despite the potential advantages of sidechains, challenges like affinity scams loom. Projects like Stacks deviate from the true sidechain model by using their token instead of Bitcoin for fees. In contrast, Rootstock's reliance on Bitcoin pegged to one Bitcoin, and its layered security concept akin to an onion vegetable, promises genuine decentralization with the implementation of BIP300.

In the face of these advancements, the inevitability of developments like "shittokens" and other innovations through soft forks cannot be ignored. While individual preferences may vary, the crypto landscape is evolving, and the community must remain open to changes such as the TapRoot upgrade and the growing prominence of sidechains. Resistance may be futile, as others are likely to soft fork and adapt to the ever-changing crypto landscape.