Source: telemediaonline.co.uk

Out of Control: Why The Bitcoin Cannot be Changed

According to the pseudonymous Satoshi Nakamoto, “the nature of Bitcoin is such that once version 0.1 is released, the core design is set in stone for the rest of it’s lifetime.” Bitcoin has been able to resist different attacks. Indeed, there have been many attempt to alter its features. If bitcoin currency were to be compared to banks’ currency, it would be the most independent bank in the world. It would be the most independent sovereign state if it were to be compared to other sovereign nations. The sovereignty of Bitcoin implies that it can never be altered by anyone. It is not an overstatement to affirm that Bitcoin cannot be controlled by anyone. There are only two simple options available: either to use it as it is or not use it.

This inflexibility is not a characteristics of the software as it is susceptible to change for someone with good coding skills, but instead is based on the economics of the currency and network, and arises from the difficulty to ensure every member of the Bitcoin network uses the same changes to the software.

An Open-source software

Source:channelfutures.com

Bitcoin uses open-source software, which means that nobody owns or controls it and everyone can take part. It was first made available by Satoshi Nakamoto and some other programmers. Since then, it has been available to people to download freely and use the software as they please. This triggers a competitive market in its implementation and everyone is free to contribute improvements to the software for users to adopt.

Over the years, many programmers across the globe have attempted to improve the node software and enhance the features of individual nodes. These programmers have contributed to several implementations – the most prominent one is the Bitcoin core. There are several other implementations and users are free to alter the source code at any point. For the node to be a part of the network, it must follow the rules of other nodes. There is no central authority that dictates the evolution or operation of the Bitcoin software and no single programmer can set its outcome in motion. For an implementation to be accepted, it must follow the parameters of the original design. The improvements are made to enhance the way individual nodes interact with the system, and not completely alter the general consensus rules of the Bitcoin network. Furthermore, there are several trading platform for Bitcoin. An example is bitcoin-rush.org.

No Bitcoin stakeholder can control its network

Source:valuewalk.com

Bitcoin programmers, for all their exceptional brilliance, have no complete control over the Bitcoin network, and are just Bitcoin coders because they provide node operators with software the operators need to use. However, not only coders lack total control of the bitcoin network.

Miners too have no authority or control, for all the “hashing” power they possess. No matter how much this “hashing” power might be, when they attempt to process invalid blocks, there is no way they will be validated by the majority of the Bitcoin nodes. This implies that anytime miners attempt to change the consensus rules of the network, any block they create will be ignored by the members operating the nodes, and they would have wasted much effort and resources on solving complicated proof-of-work problems without any form of reward. Hence, Miners power is only limited as they can only work on blocks with valid transactions in strict accordance to the consensus rules of the system.

Furthermore, it might be tempting to think node operators should then be capable of controlling Bitcoin. Realistically, that is wrong. They only have power over their own nodes and can choose which network rules to adopt and which transaction they can regard valid or invalid. Nodes have restricted choice of consensus rules and must follow the rules that are consistent with the consensus of the network for their transactions to be accepted. In other words, all nodes must maintain the general rules and remain compatible with the nodes of the same rules. Each node cannot force other nodes to change their codes and this provides a strong incentive to maintain the general consensus rules.

Technology Behind Bitcoin

Source:information-age.com

This is a complex system that provides Bitcoin and other types of cryptocurrencies with their essential features. The great thing is that the developers are actively working on upgrades of this system and its implementation in other spheres. For instance, the introduction of smart contracts. Also, it can improve the online platforms and allow the integration of the advanced system. That can be used for improvements in the development of smart homes and overall IoT.

The simple explanation of this system is that it represents a digital model of storing data in a closed or open system, and it can keep it safe and unreachable outside that circle. When it comes to BTC and another crypto, they are using nodes for storing this data. That is the main reason why miners are essential for the system since they are the ones who provide resources that will approve transactions.

Also, miners are creating blocks of codes, where each block contains data that is connected and represents a chain with other blocks.  Besides that, each transaction is protected with the hash code. Moreover, after the data is added to the system with the hash code, there is no way to edit or delete it. When you buy Bitcoin, the information about the transaction will be stored on a decentralized system where the nodes will allow the process. In the end, there is another layer of protection with encryption. While the system is public, and anyone can check the codes and volume of transactions, your private data will remain anonymous.

Besides the ability to allow cryptocurrencies to have their main features, there are many other advantages of using a blockchain system. We can notice the rise in popularity of NFT, which is a unique digital form where you can store multimedia files with reserved rights. That will have a big influence on the economy and completely change the way of trading in the future. The main benefit is related to the advanced model of security that this system provides.

Why Trading is So Popular?

Source:newsanyway.com

As we can see, the main reason why investing in Bitcoin is so popular is related to the great potential to earn a profit on trading with this digital unit. The current price is around $33,000. When we compare it with the same period last years, it grew more than three times. Also, a couple of months ago, the price was at a record-high $60,000. This market is highly volatile, which is the main reason why it is so attractive to investors. You can choose different methods of trading as well. When we look at some predictions, experts in this field are suggesting that the value might reach the price of over $100,000 before 2025. Therefore, simply buying and keeping it until the price gets higher is a great solution. On the other side, you can be more active in trading. The interesting feature is that the prices are frequently changing every day. For example, the price might vary in thousands of dollars during the same day. Therefore, you can implement a proper strategy and be aware of various factors that are affecting these changes, and make a great profit every day.

Bottom Line

In conclusion, even though it seems one member of the network has power over the others, the control is limited. Every member of the Bitcoin community works hand-in-hand with the others. It is a perfectly decentralized system of transaction and no one has complete control over Bitcoin.

Ricardo is a freelance writer specialized in politics. He is with foreignspolicyi.org from the beginning and helps it grow. Email: richardorland4[at]gmai.com