Bitcoin's Cultural Shift: Navigating the Waters of Change and Opportunity - #221
TL;DR - Bear market truths and Bitcoin's path: A recap of Bitcoin Builders Conference and BTC23. Unveiling vulnerabilities and embracing change.
Dear reader,
I had the honor of attending two significant Bitcoin conferences, The Bitcoin Builders Conference and The Bitcoin Conference 2023, where I gained valuable insights into the ever-evolving digital landscape. Conferences are similar to meet ups, only on a much larger scale. If you haven't been to a Bitcoin meetup, I highly encourage you to do so in order to meet fellow enthusiasts, developers and more.
My goal is to distill the information to provide a clearer understanding for all.
The Bitcoin Builders Conference.
Though smaller in scale, it proved to be a treasure trove of insights. The focus was squarely on Bitcoin's current state, expanding beyond its traditional role as a form of money. I discovered a growing trend of individuals shifting their attention from other projects to concentrate on Bitcoin development. This shift emphasizes the expanding use cases for Bitcoin, which I found inspiring and invigorating.
The Bitcoin Conference.
Attendance was noticeably lower due to the bear market. However, similar to the Builders Conference, BTC23 provided a wealth of meaningful content. Engaging debates revolved around concepts like Ordinals, Inscriptions, and BRC-20 tokens. Notably, the staunch "gold" guards, often advocating "HODL only," didn't hold as much sway this time around.
Two Conferences One Message
Both conferences were slightly different from one another, but both of them gave the hint that the tides are starting to change in the world of Bitcoin. A cultural shift is brewing and not everyone is seeing eye to eye.
Now, let's delve into the specifics of these concepts (that were brought up in both conferences which have caused a divide) in a clearer and more coherent manner:
Of NFTs, Ordinals and Inscriptions
NFTs, or non-fungible tokens, are unique digital assets that can be linked to Bitcoin. They represent ownership of special items like artwork or collectibles, offering exciting possibilities for creators and collectors.
OP_RETURN
Storing data on the Bitcoin blockchain is akin to putting essential information inside a transaction's secret box. The feature called OP_RETURN allows you to attach extra details to a Bitcoin transaction without affecting the money transfer, much like adding a note.
Inscriptions
To store data more effectively, inscriptions emerged as a new approach. They leverage the witness data of a transaction, which holds signatures and other crucial spending information. Segregated witness (segwit) and Taproot upgrades enhanced efficiency and security, enabling inscriptions.
Ordinals
To keep track of individual satoshis, the smallest unit of Bitcoin, ordinals come into play. They establish a linear ordering system, vital for inscriptions. However, it's important to note that not all Bitcoin wallets fully support inscriptions and ordinals yet. Specialized software is required for seamless interaction and tracking of these inscribed satoshis.
BRC-20
Inspired by Ethereum's ERC-20 tokens, BRC-20 tokens provide a means to create tokens on the Bitcoin network. While their functionality is not as extensive as ERC-20 tokens at present, users can mint, deploy, and transfer BRC-20 tokens. It's worth mentioning that broader support for BRC-20 tokens across wallets and exchanges is still developing.
Real-world applications of ordinals
In the world of Bitcoin, beyond the realm of NFTs, lies the potential for real-world applications of Ordinals. Imagine a future where inscribing news articles becomes a means to preserve honesty in journalism, safeguarding the truth from manipulation. Furthermore, the concept of inscriptions extends to personal matters, where having a will inscribed could ensure the utmost integrity of a contract, providing certainty and peace of mind.
Interestingly, it was none other than Satoshi himself who set the stage for inscriptions by making the first notable inscription. On that fateful day of January 3, Satoshi inscribed the truth about the Bank of England's bailout of the banks, forever marking a milestone in the Bitcoin blockchain's history.
As the current iteration of inscriptions continues to evolve, the landscape is brimming with a multitude of exciting projects and endeavors. However, as time progresses, we can anticipate the settling of these nascent developments into more practical and sustainable use cases. Gone will be the days of pump and dump schemes, giving way to the emergence of genuine and enduring applications.
The power of Ordinals lies not only in the realm of digital assets like NFTs but in the real-world impact it can have on journalism, contracts, and beyond.
Cultural divide emerging…
As Bitcoin experiences increased usage, some challenges have arisen. Congestion and higher fees have become more prevalent. However, this surge in interest has attracted a fresh wave of developers, investors, and speculators, infusing new life into the Bitcoin ecosystem.
Bitcoin's role is undergoing a noticeable shift, with a cultural divide emerging. Some prefer to maintain the status quo, while others embrace Bitcoin's newfound utility and seek to explore its full potential.
A step-by-step guide to navigating the landscape
Stay humble and open-minded is crucial.
Avoid falling into the trap of tribalism, which focuses on being right rather than being useful.
Learn about Bitcoin, explore its practical applications, and gain firsthand experience to truly understand its potential.
Stay informed as trends move quickly.
Explore Bitcoin services and learn which works for you.
To be prepared for higher fees and congestion, you can refer to the guide I mentioned earlier.
Conclusion
New use cases for Bitcoin are driving its increased usage, leading to congestion and higher fees. The surge in interest is revitalizing the Bitcoin ecosystem, attracting a diverse range of participants. As Bitcoin evolves, it is essential for both newcomers and seasoned enthusiasts to adapt, remain open-minded, and actively engage with the developments in the space.
Stay informed, stay curious, and embrace the ever-changing world of Bitcoin.
Until next time,
Rare Passenger
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