Bitcoin: How SegWit Broke It…
When Satoshi Nakamoto designed Bitcoin he created: “A Peer-to-Peer Electronic Cash System” for the world.
Money is a function. Therefore if something cannot function as money, it’s not money. In order for money to function, it must be neutral. If it’s not neutral then it’s a Security because it has been issued by a central point of authority that has control over it.
The issue with digital currency is that it has a centralised starting point, which implies there is a central point of authority in control of it. Satoshi Nakamoto understood this paradox.
To learn more about this paradox you can read my medium article linked here — https://medium.com/@sirtoshitv/bitcoin-the-paradox-of-the-centralised-starting-point-c359d164cbdb
In order to create a digital currency, Satoshi Nakamoto realised he would have to create a system that would somehow dilute & neutralise the power & control that came with the centralised starting point over a period of time. Part of this strategy was to author the Bitcoin White Paper under a pseudonym.
To learn more about the significance of this pseudonym you can read my medium article linked here-https://medium.com/@sirtoshitv/bitcoin-why-satoshi-nakamoto-5149d17cda2
By using a pseudonym and stepping away from the Bitcoin project for a period of 10yrs he allowed the Bitcoin network to grow without any central point of authority, control or influence, which was all part of neutralising the network.
He also used a system called Proof of Work (POW) which enabled the network to become a distributed ledger technology (DLT). This diluted the central point of authority further by encouraging miners to share in the security of the network, which meant the system no longer had a single point of failure.
Due to the block reward halving that happens every four years miners are economically incentivised to add value to the digital asset that sustains the network that is Bitcoin. Part of making sure the network is used & therefore increases in value is making sure it can be trusted & it can only be trusted if there is no central authority controlling it.
To learn more about the value of trust in a system you can read my medium article linked here-https://medium.com/@sirtoshitv/bitcoin-its-accountability-not-anonymity-that-protects-us-78ddf2bfd7e6
This is why Satoshi Nakamoto designed Bitcoin with a chain of signatures. The chain of signatures validates transactions on the network, which means there is nothing that anyone can do that no one else would know about. This means that the system cannot be corrupted by the creator, which is fundamental to the system being honest, trusted & valued.
Blockstream are a centralised group of developers that now control the development of BTC. They implemented a change in the protocol of Satoshi Nakamoto’s Bitcoin design. They called this implementation “Segregated Witness” (abbreviated to SegWit). SegWit broke the chain of signatures that validated the network & kept it honest. This means that the central authority that implemented SegWit now has complete control of the system & is free to make further changes without anyone knowing. It’s because of this that BTC can no longer be considered as money, be used as a Peer-to-Peer Electronic Cash System for the world or be defined as Bitcoin.
Bitcoin is defined by the set of digital protocols described by Satoshi Nakamoto in his Bitcoin white paper. This protocol is now named Bitcoin Satoshi Vision, known as Bitcoinˢᵛ with a ticker symbol (BSV).
To understand why Satoshi Nakamoto’s Bitcoin protocol is known as Bitcoinˢᵛ & has the ticker symbol BSV read my Medium article titled: “Bitcoin: A Tail of Blockchain BTC/BCH/BSV” linked here — https://medium.com/@sirtoshitv/bitcoin-a-tail-of-blockchains-x3-eebb136457c7
Satoshi Nakamoto had a vision. That vision was Bitcoin. Bitcoin is Satoshi’s Vision. Bitcoin is BSV.
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