P01 - proof of study
notes session 10.12.23 [811869]
Report: #Bitcoin First Revisited by Fidelity Digital
--
Lindy Effect: the longer a non-perishable thing survives, the more likely it is to survive in future
Antifragility: when something becomes stronger with each attack or stressor it faces
Bitcoin is antifragile and every second, minute, day, month it survives increases the likelihood it will continue to survive
Most people underestimate the volume and intensity of negative events Bitcoin has already endured
Due to network effects, it is likely that one digital monetary good will dominate the global market
It is unlikely that another digital asset will supersede Bitcoin as a monetary good
Blockchain trilemma: a decentralized database can only deliver on two of three guarantees at one time: decentralization, security, or scalability
Security: likelihood of the network being attacked or compromised
As the Bitcoin network grows with more nodes and miners distributed across the world, it becomes harder and more expensive to attack Bitcoin
Bitcoin is by far the most secure digital asset when measured by hash rate securing the network
Decentralization: how much control any one person, entity or group has on a system or network
The opposite of a decentralized network is a conpletely centralized network where a signle intermediary controls all aspects of the network
Decentralization = lower network throughput (lower scalability) but higher security
Bitcoin is the most decentralized digital asset and continues to show increasing decentralization over time
Scalability: how well a network can handle growth of number of users and volume of transactions
Bitcoin optimizes for decentralization and security and as a result has a slower transaction throughput capability
Bitcoin scales in layers built on top of the base layer, not on the base layer itself
Bitcoin is currently the most secure and decentralized monetary network
The transaction throughput of Bitcoin is limited by the time between each block (approx 10min) and the block size (just over 1mb) which limits the number of txs that can fit into each block
Blocksize war: a battle to increase block size which would decrease decentralization over time (because running a node would be more expensive over time with bigger blocks creating more data to store)
This war resulted in a hard fork which created a code change that was not backward compatible
All hard forks from Bitcoin to date have either failed completely or struggled to gain any kind of market dominance
This signals that the market values a highly secure and decentralized store of value more than another payment network
Bitcoin's revolutionary invention was solving the problem of digital scarcity and creating a digital store of value, not making an incremental improvement to a payment system
-
21min
pgs 8-14
Finney21
npub1ks2…pkex
2023-10-12 17:23:01
Author Public Key
npub1ks2lwal5ewlzpsgvtsc82kteszpyvnjcnfypmzepw5kd3pvaxtaq9fpkexPublished at
2023-10-12 17:23:01Event JSON
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"content": "P01 - proof of study\n\nnotes session 10.12.23 [811869]\n\nReport: #Bitcoin First Revisited by Fidelity Digital\n--\nLindy Effect: the longer a non-perishable thing survives, the more likely it is to survive in future\n\nAntifragility: when something becomes stronger with each attack or stressor it faces\n\nBitcoin is antifragile and every second, minute, day, month it survives increases the likelihood it will continue to survive\n\nMost people underestimate the volume and intensity of negative events Bitcoin has already endured\n\nDue to network effects, it is likely that one digital monetary good will dominate the global market\n\nIt is unlikely that another digital asset will supersede Bitcoin as a monetary good\n\nBlockchain trilemma: a decentralized database can only deliver on two of three guarantees at one time: decentralization, security, or scalability\n\nSecurity: likelihood of the network being attacked or compromised\n\nAs the Bitcoin network grows with more nodes and miners distributed across the world, it becomes harder and more expensive to attack Bitcoin\n\nBitcoin is by far the most secure digital asset when measured by hash rate securing the network\n\nDecentralization: how much control any one person, entity or group has on a system or network\n\nThe opposite of a decentralized network is a conpletely centralized network where a signle intermediary controls all aspects of the network\n\nDecentralization = lower network throughput (lower scalability) but higher security\n\nBitcoin is the most decentralized digital asset and continues to show increasing decentralization over time\n\nScalability: how well a network can handle growth of number of users and volume of transactions\n\nBitcoin optimizes for decentralization and security and as a result has a slower transaction throughput capability\n\nBitcoin scales in layers built on top of the base layer, not on the base layer itself\n\nBitcoin is currently the most secure and decentralized monetary network\n\nThe transaction throughput of Bitcoin is limited by the time between each block (approx 10min) and the block size (just over 1mb) which limits the number of txs that can fit into each block\n\nBlocksize war: a battle to increase block size which would decrease decentralization over time (because running a node would be more expensive over time with bigger blocks creating more data to store)\n\nThis war resulted in a hard fork which created a code change that was not backward compatible\n\nAll hard forks from Bitcoin to date have either failed completely or struggled to gain any kind of market dominance\n\nThis signals that the market values a highly secure and decentralized store of value more than another payment network\n\nBitcoin's revolutionary invention was solving the problem of digital scarcity and creating a digital store of value, not making an incremental improvement to a payment system\n\n-\n21min\npgs 8-14",
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}