Author | Muneeb Ali
Production | Blockchain Base Camp
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It is undeniable that Bitcoin is still the undisputed "king of blockchain." Since the trial period in 2017, Bitcoin's dominance has increased significantly. Bitcoin survived many attempts of forks and "civil wars" and established itself as a reserve cryptocurrency. People are falling back to Bitcoin in a bear market. Today, production networks have stood the test of time for more than 10 years.
However, when it comes to smart contracts or Web 3.0, the cryptocurrency industry is no longer using Bitcoin. I believe this will change.
Bitcoin is indeed not a panacea. Bitcoin is secure because of its limited scripting language. Because Bitcoin cannot be changed, it is reliable and durable. This does not mean that the developer ecosystem surrounding Bitcoin cannot innovate and cannot support Web 3.0. As the crypto industry moves towards Web 3.0, we will realize that the security and network impact of Bitcoin is difficult to overcome.
Despite some steps taken by some potential competitors, the security provided by the Bitcoin network's hash rate and its proof-of-work (PoW) mining remains unmatched to this day. For years, new cryptocurrencies have been trying to launch their own local PoW network, but no one has been able to achieve the success of Bitcoin.
Bitcoin has a network effect
Most people are exposed to cryptocurrencies through Bitcoin. If something can be done on top of Bitcoin, then eventually it will do something on top of Bitcoin rather than a smaller ecosystem. The network effect made Bitcoin's success self-reinforcing: miners saw the establishment of the network, the strength of the community, and the currency as the "hardest" currency in the crypto space. Miners have joined or expanded their commitments to improve hashing power and network reliability; their participation has inspired more holders and businesses and increased community support. This cycle continues.
Smart contracts on Bitcoin
Despite Bitcoin's success, critics who question its ability to innovate have some legitimate points. Some aspects of Bitcoin frustrate developers who want to explore the world of smart contracts and decentralized applications. Many projects have created their own blockchain because they see Bitcoin's scripting limitations as a transaction disruptor. They cannot deny the security of the original chain, but they also hope that they can write more expressive smart contracts. New blockchains find themselves struggling with poor local PoW security and often try to jump into Proof-of-Stake (PoS) or Delegated Proof-of-Stake PoS settings, which may be less secure and tend to be centralized .
As a result, several crypto projects have concluded that they must choose their own route: they must try to guide the local PoW chain or establish a PoS chain and make all the compromises.
However, these are not the only options. There is a different way to go: smart contract platforms can take advantage of Bitcoin's PoW security to protect new blockchains.
The new protocol can anchor Bitcoin's security and extend its utility. Compared to other networks, transactions settled in Bitcoin are more difficult to restructure. This is an untapped design space, but it is beginning to change.
The Bitcoin blockchain already has security from energy consumption, and this security can be passed to the interconnected chain by using concepts such as proof of transmission (PoX). It is important to realize that interconnected chains are different from traditional side chains. Interchain created its own crypto assets, but they used the Bitcoin chain to broadcast mining operations and reach consensus steps. The Bitcoin-based interconnection chain is a win-win proposal for all parties, because the new blockchain benefits from the reliability and longevity of Bitcoin, while providing freedom and flexibility for developers using the interconnection chain.
The Bitcoin blockchain can also benefit from new and powerful use cases. These can attract new miners and new network participants, further consolidating Bitcoin's position as a reserve cryptocurrency.
In the smart contract platform, including the author's own projects, it is necessary to understand the powerful functions of on-chain contracts. However, just as you don't need to build all new roads to drive new cars, you also don't need to reinvent PoW or PoS chains to adopt reliable smart contracts or launch new blockchains. The solid foundation needed to realize our Web 3.0 vision is already in place, and future Web 3.0 can use Bitcoin as a foundation.
This article only expresses the author's personal opinions and does not represent the views of the blockchain base camp. I hope this article is useful to you, and welcome to discuss with us in the comment area.