The Next Decade Unveiled: Reflecting On The Journey So Far - Part 1

(MENAFN- Crypto Breaking)

As we step into a new year, the typical social media buzz around predictions for“what will happen in 2020!” is in full swing. However, I would like to broaden the perspective and explore the next decade. Before diving into future insights, let's take a moment to reflect on the previous year (I know I'm a bit late, but it's worth it) to really highlight the progress we've witnessed.

Mining and Network Security

Back in 2010, the Bitcoin network was safeguarded primarily by hobbyists using desktop CPUs, easily outmatched by larger, resourceful entities. Fast forward to the beginning of 2020, and the network is now reinforced by billions of dollars' worth of hardware, consuming as much electricity as small nations. This infrastructure is supported by numerous companies, each valued in the billions. Over the past decade, the security model of the network has evolved from amateur setups to highly specialized ASIC machinery and professionally managed data centers.

Protocol Development

In the early days of 2010, users could send Bitcoin merely to public keys (or IP addresses), utilize time-locked transactions (just for the transactions, not the UTXOs), and craft raw multisig transactions, which were cumbersome and costly. Moreover, a bug allowed anyone to spend any coins through OP_RETURN. Although the scripting capabilities were more extensive back then, this overview focuses on what individuals could practically achieve. By 2020, the advancements are extensive and deserve bullet points:

• Implement P2SH to facilitate cheaper transactions when sending to complex scripts (like multisig).
• Time-lock actual UTXOs to a specific block height or UNIX timestamp.
• Time-lock actual UTXOs relative to a block height or UNIX timestamp interval from their creation.
• Construct transactions with non-malleable TXIDs for second-layer protocols and linked transactions, thanks to the Segregated Witness (SegWit) upgrade. This also facilitates smoother script upgrading as SegWit introduces its own versioning system, providing more flexibility in defining new script functions without exhausting the limited undefined OPs in Bitcoin script.
• Utilize a rudimentary version of the Lightning Protocol, a second layer made possible by the malleability fix in SegWit.
• Establish operational sidechains that allow for the experimentation and deployment of more advanced features with greater ease.

The last ten years have yielded a remarkable array of primitives that form the basis for developing upon Bitcoin 's foundational network and blockchain. This progress is particularly impressive given the complexities involved in achieving consensus on upgrades, alongside the challenges of implementing and deploying these enhancements.

Political Significance

In 2010, Bitcoin was a relatively inconspicuous blip on the radar, only just gaining the attention of the CIA. Their initial reaction involved inviting a developer to discuss the technology, coinciding with the mysterious disappearance of Satoshi Nakamoto. Beyond that, Bitcoin attracted little attention from politicians or government agencies (aside from covert entities we may still be unaware of). It was basically ignored.

By 2020, however, Bitcoin has evolved into a thriving market and industry valued at hundreds of billions of dollars. Cryptocurrency exchanges have reaped billions in revenue through trading fees. Collectively, miners have also earned significant returns in exchange for their investments. Tens of millions, potentially hundreds of millions, of people now hold Bitcoin (though accurate metrics are scarce). We've transitioned from a time when the CIA barely acknowledged Bitcoin to a landscape where almost every significant government regularly engages in legislative sessions to address Bitcoin and its extensive macroeconomic and geopolitical implications. Nations are developing their own cryptocurrencies and even imposing sanctions on specific cryptocurrency addresses, marking their official involvement. From the CIA's solitary gaze in 2010 to the global spotlight in 2020, the shift is undeniable.

Transformations are underway. As the saying goes, good luck trying to halt this progress.

(This marks Part 1 of 4; stay tuned for Part 2 coming tomorrow).

This piece is a guest contribution from Shinobi. The views expressed herein are solely those of the author and do not necessarily reflect the positions of BTC Inc or Bitcoin Magazine.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don't invest unless you're prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

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