Bitcoin Development and Upgrades
What is Bitcoin development?
Bitcoin does not have a CEO, instead it improves through open-source code updates proposed by developers. Every change to Bitcoin’s framework must:
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Keep Bitcoin decentralized
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Maintain security
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Have broad community support
Think of it as adding a new amendment to the United States Constitution. Very hard to pass and needs a majority consensus
Key Bitcoin upgrades:
SegWit, 2017
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Fixed transaction malleability. In other words, no longer can fake transaction IDs (TXID).
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Paved way for lightning network
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Lower fees
Taproot, 2021
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Added better privacy
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Complex and bigger transactions appear more normal (transactions from Multisig wallets)
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Cheaper smart contracts
Lighting Network, Ongoing Upgrade
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Instantaneous payments (1 second vs 10 minutes)
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Micro fees (able to send $0.01 for $0.0001 in fees)
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The future of consumer purchases using Bitcoin
How do these upgrades happen?
They happen through a BIP proposal (Bitcoin Improvement Proposal). Anyone has the ability to submit ideas. Developers test the idea and the code for months, sometimes years. If approved, miners and nodes have to upgrade
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95% must adopt the proposed change
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No forced changes
Why these upgrades matter:
Bitcoin is not currently running version 1.0. It is constantly updating, evolving, and improving. Unlike apps which force users to update, the Bitcoin network requires near unanimous support from its users to update. Changes to Bitcoin’s framework benefit you, not an overlying leader or corporation.
Common Questions:
Can Bitcoin developers force changes?
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No. Miners and nodes must voluntarily upgrade to support the new framework
What stops bad upgrades?
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If miners/nodes feel there is no need for this change or it could crash the price of Bitcoin. In other words, no economic incentive to upgrade.
Can I participate in myself?
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Yes, run your own node to vote for your software choice. You can also join developer discussions.
