Could Bitcoin Lose Its Crown?

What if we copy Bitcoin code?

Since it is open source, Bitcoin code can be easily copied. You can copy the code now or create your own variation with new functionality. You can name this new network as: Bitcoin 2, Bitcoin 3, Bitcoin Road To Be A Billionaire, whatever you want. If I’ve piqued your interest as a blockchain developer, I let you. BitcoinCore, Bible 3.0. But then, what makes Bitcoin valuable if the code is easily copied.

People have tried to make bitcoin improvements called fakes and forks. The list numbering in the thousands, back in 2013, four years after the launch of the first Bitcoin block called Genesis. Guess what? Despite possible minor improvements to the original Bitcoin protocol, none of them have ever caught the attention of the public, at least not on the same level as the real Bitcoin.

So why was Bitcoin able to maintain its dominance?

Metcalfe’s law

We can find the first reason Metcalf’s law. This principle suggests that the cost of a telecommunications network is proportional to the square of the number of connected users of the system. So the bigger the network, the easier it is to grow faster. For example, by analogy, owning a fax machine is useless. When you have two fax machines, you can contact another person, but when you have millions, the device has a certain value.

Cryptocurrencies, due to their social nature, are subject to growth measures defined by Metcalf’s Law. The more people adopt a given cryptocurrency, the more attractive it is for others to use it. The more others use it, the more attractive it is for merchants to adopt it. And the more merchants adopt it, the more valuable it becomes to the original users. Repeat ad infinitum, or at least until all people have used it.

Metcalf’s law
Researchgatenet

This law may also explain the high degree of decentralization of the Bitcoin network, which, being one of the oldest networks, has allowed the proliferation of nodes protecting the network around the world over the years. Bitcoin remains the most decentralized network in the cryptocurrency ecosystem today.

Now let me ask you. Would you want to own a bitcoin, or even a fraction of it, knowing that you could instantly sell it to hundreds of millions of people around the world? Or buy my new “BetterBitcoin” instead: “I can guarantee you, no one is using it yet, but trust me, they will.” What do you think most people will choose? The answer is clear.

But what about the 20,000 cryptocurrencies you’ve heard of?

There is Bitcoin and others

If, on the one hand, Bitcoin was intended as a decentralized, uncensored and transparent peer-to-peer payment system limited to 21 million units with its own digital currency (some prefer to call it “digital gold”), on the other hand, competing blockchains are a completely different profession. they have Let me explain, let’s take Ethereum for example. We can compare it to a world computer where anyone can create their own software, except you use ether, the blockchain’s native cryptocurrency, to transact in this software. Ethereum is the promised land for developers of decentralized applications (Dapps) who want to trust. smart contracts Creating 3.0 software. Since then, many blockchains have in turn tried to become a better world computer than Ethereum. This is the case with Solana, Cardano, Cosmos or Avalanche, among others.

So why not build these decentralized applications on Bitcoin, you say? As we can see, this is not the profession of Bitcoin, it was designed by Satoshi Nakamoto to be a decentralized and uncensored electronic payment system. You will say that one does not necessarily prevent the other. Well, it’s time to tell you a little story to explain.

A Brief History of Vitalik Buter on Bitcoin

Ethereum co-founder Vitalik Buterin saw the value of Bitcoin and decided to devote his life to the crypto sphere since his teenage years. Buterin is also one of the founders Bitcoin magazine September 2011 while studying in college. He quickly became a bitcoin expert and deepened his knowledge to improve the blockchain. In May 2013, due to his interest in Bitcoin, the young Buterin decided to pursue cryptocurrency development full-time, and at the end of the semester he dropped out of university to pursue his dream of a decentralized world. For six months in 2013, Buterin traveled around the world meeting with bitcoin developers. But he realized he could create a new, potentially better blockchain. “Bitcoin had very limited functionality,” he said.

To illustrate his point, Buterin compared Bitcoin to a pocket calculator and Ethereum to a new smartphone-like blockchain. “A pocket calculator does one thing and does one thing well, but really people want to do all these other things. If you have a smartphone, you have a pocket calculator as an app,” he said. As a result, he came up with Ethereum, the smartphone of the cryptosphere. That is, Bitcoin’s original scripting language to maximize security at the expense of programmability, which limited the young Buteri’s ambitions.

Bitcoin is now known for its peer-to-peer payment system, While Ethereum can process more transactions, it can power and build decentralized applications like financial instruments and social media platforms, as well as NFTs through the development of smart contracts – in other words, a whole bunch of features that are too complex to integrate. Bitcoin Pocket Calculator. with its transition from proof-of-work to proof-of-stakeThe ultimate goal is to prove Ethereum’s ambition to maximize the programmable slider. the blockchain trilemma. But the criterion of decentralization is in question, especially after its transition to proof of stake…

So with Bitcoin and Ethereum, it’s two rooms, two atmospheres. On the one hand, a good old pocket calculator that never disappoints, on the other hand, a smartphone that is sometimes full of good or bad apps… In my opinion, the big cryptocurrency in the future will be Bitcoin. currently the most decentralized and therefore less vulnerable to unauthorized private transactions or manipulation – and likely better suited to solving unique and specific or tailored economic tasks according to the unique political and social customs of several dozen other cryptocurrency users – The reference blockchain remains for the moment to satisfy the wishes of Ethereum Developers Web3.

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