Papa John’s Pizza and the Bitcoin Maverick

Remember Laszio Hanyecz? The man who made bitcoin’s 1st major purchase? Well he’s breaking news again with a network purchase of one of Italy’s favourite foods. Pizza! Yes pizza that orgasmic delicacy with stringy dripping butter cheese that melts in the mouth with a gooey satisfaction, fresh tomatoes, Italian spices, red or green peppers and all kinds of different meat toppings  that put’s pizzas on another planet. Planet Pizza! Are you tempted to order one now? Thin crust or thick?

Papa John’s Pizza and the Bitcoin Maverick

Done it? OK back to Laszio who became famous on the 22nd of May 2010 when he traded 10,000 Bitcoin’s, $41 at the time, for two Papa John’s pizzas. Papa John’s Pizza is the American restaurant franchise company with headquarters in Jeffersontown, Kentucky that runs the 3rd largest take-out and pizza delivery chain in the US. Laszio’s Pizza deal went viral and is legendary today due to the massive increase in Bitcoin’s price since then. $410,000 in 2010 is now around $100 million in 2018.  This transaction also became an important landmark in Bitcoin’s history. Laszio became the 1st person buy something from a mainstream merchant, making him a Bitcoin Maverick, and now he’s done it again by purchasing pizza with Bitcoin’s in progress off-chain Lightning Network.

Brian Lockart, Blockchain researcher, commented:

“Good people, harken and know that on this day the one called Laszio did buy the 1st Bitcoin Lightning Pizzas, bringing us into this new era of glory and cheesy goodness.”

And one Reddit user commented:

“This dude Laszio has nerves of steel and should be in the 1st batch of Mars colonists”

For Laszio though it’s all about the future of Bitcoin as a cost effective, quicker, and all in all a better online payment service. In 2010 he paid a fee of 1 BTC which at that time he didn’t care about. He’d used internet money to purchase a real good and now he explains his current purchase:

“I’m posting about Lightning because I do believe in it and it’s still in its very early stages. But the Lightning Network promises to bring back that functionally of being able to buy pizza with Bitcoin.”

From Small Pizzas Bit Pizza Trees Grow!

This, unquestionably small transaction, sends a big message about Bitcoin’s direction after recent questions related to its roadmap.

But Challenges Need to be Overcome

As Lightning development nears completion there are still challenges that need to be overcome. Lightning has to rely on a bi-directional payment channel which means the services of  middle men are required which means both parties need to set up a payment channel to accept lightning payments. In deed Laszio had to set up special channel with a friend to order his pizza as the establishment didn’t have the ability to set up a Lightning channel. The future of middlemen in these transactions will have to be reviewed, as time goes by, but the main purpose of the exercise was to show how it can work.

For the technical issues Laszio comments:

“I’m thinking that people will figure that stuff out pretty quickly, and they’ll provide ways of doing it automatically so that people don’t have to think about it,”

Anyone for Pizza?

As its Tuesday, and 2 for 1 day at our local pizza place, we’ve just ordered a few boxes for lunch.  Are you tempted?