This piece is contributed by a guest author, who is an initial contributor at Core DAO.
Satoshi created Bitcoin not as a universal platform—a jack of all trades, master of none. Instead, Bitcoin intentionally sacrifices speed and scalability in favor of decentralization and security. Contrary to some prevailing beliefs, this is not a barrier to developing new applications based on Bitcoin.
In fact, Bitcoin’s slower pace is an asset rather than a shortcoming. The ‘Building on Bitcoin’ initiative will thrive only if developers accept and utilize Bitcoin’s gradual architecture while creatively navigating its constraints.
Avoid Altering Bitcoin
The slower nature of Bitcoin is integral to its security framework and transaction confirmation process.
By eliminating the need for centralized intermediaries, Bitcoin achieves trustless finality in transactions through Proof-of-Work (PoW) consensus, valuing security over speed. The computationally intense and time-consuming PoW offers a safeguard against malicious attempts to manipulate Bitcoin’s transaction history.
The 10-minute block confirmation period is, therefore, one of Bitcoin’s foundational security features, even though it may appear basic.
If block times were reduced, it would lead to a higher likelihood of orphaned blocks and forks. Slower block times, conversely, ensure that transactions are adequately disseminated among miners, allowing them to confirm and agree on the longest chain. This greatly reduces the risk of verifying erroneous transactions and creating hard forks.
However, scalability has always sparked debate within the community. Developers have sought to increase Bitcoin’s throughput and make it cheaper, especially during times of network congestion.
One such suggestion involved enlarging the block size to decrease transaction fees while accommodating more data within each block. The community strongly opposed this, rightfully so, leading to what became known as the Blocksize War.
While larger blocks could have enhanced transactions per second (TPS), thereby speeding up and scaling the chain, they significantly undermine decentralization and network security.
Increased block sizes demand more computational power, making it costlier to operate full nodes. If fewer miners can maintain the network, it raises the risks of centralization and consolidation among a wealthy few. This is precisely the issue Bitcoin was designed to address.
The takeaway is straightforward: you cannot change Bitcoin; instead, it changes you.
Increasing TPS is not the solution for scaling Bitcoin. In reality, there is no necessity for Bitcoin’s core to scale. Previous attempts have faltered, and future endeavors should follow suit.
Does that imply Bitcoin is destined to become irrelevant as a foundational network for crypto advancements? Absolutely not.
Developers need to shift their focus from building directly on Bitcoin. Instead, they ought to capitalize on the security and resilience provided by Bitcoin’s inherent slowness while adopting a layered approach to development.
Bitcoin serves, and will continue to serve as, the slow but secure foundation in the otherwise fast-paced and risky crypto environment.
Leverage Slowness, Innovate ‘Around the Edges’
Bitcoin was not envisioned for high programmability, intricate smart contracts, or fast-paced applications, nor other trendy concepts.
Its primary function is to establish a trust-minimized, censorship-resistant, and immutable base for sound money and secure financial transactions. Nevertheless, Bitcoin is capable of effectively supporting programmable applications.
The movement of ‘Building on Bitcoin’ demonstrates that it is feasible to enhance Bitcoin’s functionalities while maintaining its security and decentralization.
Improvements like Taproot have fine-tuned Bitcoin’s capabilities, and future developments including covenants and bridges will continue to extend its potential.
However, the most groundbreaking advancements are likely to emerge beyond the base layer.
Innovations powered by Bitcoin will occur at the peripheries, utilizing scaling solutions such as Layer-2s, Sidechains, Statechains, Rollups, and a variety of interoperability protocols.
By innovating ‘around the edges,’ developers can execute cutting-edge advancements and expand the ecosystem without jeopardizing its core principles. These solutions will create entirely new use cases for both the network and the broader asset class.
This approach will enhance Bitcoin’s usability as a medium of exchange and as a collateral asset, all while preserving its integrity as the most secure financial network.
While other chains may introduce features to compete for market share, Bitcoin has been subjected to extensive examination for any modifications. The community has consistently resisted hasty moves to accelerate the network, prioritizing its unmatched security.
Bitcoin’s deliberate pace is precisely what ensures the longevity of this network. It compels developers to prioritize long-term solutions that fortify rather than undermine the foundation.
Developers should not be swayed into pursuing ephemeral trends or making unwise shortcuts. Why would they when they have such a robust, secure, and resilient base from which to build?
Just as one wouldn’t excavate a building’s foundation to add a third story, remarkable things can be constructed on Bitcoin without altering or hindering its core. This is the pathway toward genuinely decentralized financial systems.
What is durable endures. Bitcoin is durable, and the applications developed within this ecosystem can be, too. It’s not a matter of if, but whether developers are prepared to embrace the right strategy. Those who do will thrive in the next decade of Bitcoin innovations. The journey has already begun.