The Bitcoin protocol is built into Bitcoin, but hidden in the White Paper. This article aims to extract the protocol that is subtly outlined in the White Paper.
The Bitcoin protocol consists of 5x elements that are essential for Bitcoin to be classified as a commodity & maintain economic value, in order for it to be used as a medium of exchange to economically sustain its network. Those elements are: 1) Economic competition 2) Common Accountability 3) Locked Protocol 4) Unbounded Scale Capacity 5) Fixed Asset supply.
Below are these 5 elements that commoditise data & where they are hidden in the Bitcoin White Paper…
Translating the Bitcoin White paper:
https://craigwright.net/bitcoin-white-paper.pdf
- Element: Economic competition.
Hidden location in the Bitcoin White Paper: ‘Abstract’
Sentence: “nodes can leave and rejoin the network at will”
Explanation: In order for a network to be a commodity network, & not have any central point of authority or control, it must be economically competitive. The various operations sustaining the network must be completely independent of one another and therefore be able to “leave and rejoin the network at will”. Only an economically competitive network enables this. - Element: Common Accountability
Hidden location in the Bitcoin White Paper: ‘2. Transactions’
Sentence: “We define an electronic coin as a chain of digital signatures” Explanation: In order for a network to be a commodity network, network users must be equally accountable to one another rather than a central authority. Accountability is transferred to the users of the network (rather than those who maintain the network) by a digital signature being attached to each data upload developing “a chain of digital signatures.” - Element: Locked Protocol
Hidden location in the Bitcoin White Paper: ‘6. Incentive’
Sentence: “He ought to find it more profitable to play by the rules, such rules that favour him with more new coins than everyone else combined, than to undermine the system and the validity of his own wealth.”
Explanation: The Bitcoin protocol remains locked by economic incentive since any alteration to these 5 elements would securitise the network & remove all economic value by bring it under the control of an unaccountable, central authority. - Element: Unbounded Scale
Hidden location in the Bitcoin White Paper: ‘6. Incentive’
Sentence: “the incentive can transition entirely to transaction fees and be completely inflation free.”
Explanation: This statement indirectly says that there cannot be a block size cap/scale restriction due to Bitcoin’s distribution model. Over time the transaction fees incentivise the minors/payment processors to compete for the block fee rather than the block reward. If the block size is restricted it means the block fee would also be restricted. This would remove the ability of the payment processors to economically compete with one another for a large enough block fee, to cover their operational running costs, as the the block reward continues to diminish until it reaches 0. Limitations & restrictions anywhere in the system mean the network is susceptible to being manipulated & centrally controlled. An uncapped block size is therefore essential for the network to have unbounded scale/user capacity & maintain economic commodity value. - Element: Fixed Asset Supply
Hidden location in the Bitcoin White Paper: ‘6. Incentive’
Sentence: “Once a predetermined number of coins have entered circulation, the incentive can transition entirely to transaction fees and be completely inflation free.”
Explanation: A predetermined number is a number than can be predicted & calculated. The network must have a fixed asset supply so there is no central point of authority or control that can inflate or deflate it, so a “predetermined number of coins” can be calculated & the network remain “completely inflation free.”
https://www.buybsv.live/ The original protocol & genuine Bitcoin has legacy wallet addresses that start with the number 1. That Bitcoin protocol is now represented by the ticker symbol BSV.
