Tuesday, January 2, 2024

How Developers BROKE the Bitcoin Trust | Understanding the Vision in Sat...

How Developers BROKE the Bitcoin Trust | Understanding the Vision in Satoshi's Original Whitepaper

In this video, we discuss the newly released ebook "Understanding Bitcoin Miner Economics" published by The Bitcoin Association. Authored by Bryan Daugherty, Gregory Ward, and Kurt Wuckert Jr., the book aims to provide readers with a comprehensive understanding of how the economics and incentives behind Bitcoin mining work.

We discuss some of the key insights and lessons from the book, including how the bitcoin mining process secures the network through proof-of-work. The economics are carefully designed to encourage miners to act honestly and follow the protocol rules.

We also draw parallels to how Satoshi Nakamoto described Bitcoin in the original whitepaper. Just as the whitepaper laid out the technical details and vision for Bitcoin, it established a sort of "trust" for how the system should operate going forward.

Any changes to fundamental parameters like block size limits or consensus rules would break this underlying trust. We argue that developers who promoted controversial changes like segregated witness and a 1MB block size limit cap failed in their duty to execute the trust as outlined in Satoshi's original bitcoin vision.

Overall, the discussion analyzes how the new ebook provides valuable insights into Bitcoin's mining incentives and economics, helping readers better understand this crucial but often overlooked aspect of the Bitcoin system and its design principles.

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