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The evolution of Bitcoin development

By Guardian Nigeria
18 July 2022   |   8:02 pm
This virtual currency has been a hot topic for over a decade now. With so much recent news, fully understanding this expanding market's significance and overall purpose cannot be easy. Satoshi Nakamoto introduced this digital money in 2008 as a decentralized currency without the need for a central bank or intermediaries. Moreover, users can transfer…

(FILES) In this file photo taken on July 19, 2021 this illustration photograph taken on July 19, 2021 in Istanbul shows a physical banknote and coin imitations of the Bitcoin crypto currency. -(Photo by Ozan KOSE / AFP)

This virtual currency has been a hot topic for over a decade now. With so much recent news, fully understanding this expanding market’s significance and overall purpose cannot be easy. Satoshi Nakamoto introduced this digital money in 2008 as a decentralized currency without the need for a central bank or intermediaries. Moreover, users can transfer this virtual currency via the Bitcoin network, a peer-to-peer network in which transactions are authenticated by nodes and recorded on a blockchain. However, in 2009, Bitcoin’s first use happened after its release as open-source software when Nakamoto mined the starting block of the blockchain. Check out https://guerillacoin.com/ for some trading advice.

Since then, people have traded this virtual money hundred of millions of times on crypto exchanges, with the earliest significant transactions occurring in black markets.

Constant Evolution
The Bitcoin protocol’s idea of changes will be surprising to many. Bitcoin’s code has been continuing for over ten years, but it has undergone a few changes. In the early days, there were frequent claims that Bitcoin’s pseudonymous creator, Satoshi Nakamoto, and collaborators would fix it. There was a civil war in 2017 which most early adopters can recall, and various scaling options went to the heart of what the community desired Bitcoin to be. And this led to a change to the Bitcoin code, amplifying the block capacity, and dissenting opinions emerged to form a new Bitcoin blockchain known as Bitcoin cash. 

There is also solid work on functionality enhancements, such as enabling sidechains or smoothing information exchange. Furthermore, compatibility issues and other minor bugs require constant attention. In addition, if this virtual asset is not maintained and frequently updated, it will wither. 

Regarding how changes happen, anyone can make changes to Bitcoin’s code which is open source. On the other hand, getting the changes implemented requires network consensus, which is extremely difficult to achieve. Consequently, the network enjoys protection from changes other than those the majority believe are beneficial to the ecosystem. 

Incentives Matter
Initially, the Bitcoin network developers’ funding came from one source: the Bitcoin Foundation. However, other funders, including several companies dedicated to Bitcoin work, have entered the scene, such as Blockstream. What’s more, there are other well-known crypto businesses such as Square crypto, Coinbase, and non-profit organizations, such as the Human Rights Foundation. In addition, many developers work on this electronic money for free, which, in simpler terms, is out of passion. 

The Bitcoin development backers’ diversity matters because it ensures that no one set of priorities can influence the network.

Next Upgrade
There was the Taproot upgrade that will enhance the functionality of the network’s smart contract and introduce more privacy features. Bitcoin mining pools represent over 54% of the network’s current hash rate and have signaled support. This upgrade is a vital step towards implementation. 

This implementation is not only significant because of the specific changes Taproot will introduce, but it also indicates that Bitcoin’s use cases are constantly evolving and that itself is a value proposition. 

Bitcoin Tomorrow
most people keep wondering what the future of this electronic asset is. Nonetheless, no one can tell for sure. However, this digital money presents many opportunities because it is transparent, cost-effective, and innovative hence why investing in this virtual money is more accessible. 

The Bottom Line
Investors should remember that no investment does not have its share of risks. Also, these investors should view the history of this virtual currency and see that the price of this digital money goes up and can drop, and at times, it falls very fast.