Ethereum, Bitcoin, Chris Castiglione discussed on CoinDesk Podcast Network

Automatic TRANSCRIPT

And produced and distributed by coindesk. What's going on guys? It is Sunday, September 18th, and that means it's time for long reads Sunday. Before we get into that, however, if you are enjoying the breakdown, please go subscribe to it, give it a rating, give it a review or if you want to dive deeper into the conversation. Come join us on the breakers Discord. You can find a link in the show notes or go to bit LY slash breakdown pod. Also, a disclosure, as always, in addition to them being a sponsor of the show, I also work with FTX. Now, it is only fitting for Ethereum merge week that we do a merge themed long read Sunday. Although what we're actually going to look at is the contemplation it is prompted around Bitcoin and its relationship both to Ethereum as well as to itself. So first we're going to read a piece called Bitcoin should change slowly. Reconsidering the first cryptocurrency slow and steady approach to development as Ethereum's merge nears. The pieces by Chris castiglione who works on a secure chat platform for web three called console dot XYZ is a general manager at trust machines, which is building on Bitcoin and is an adjunct professor at Columbia University business school. Chris writes, Bitcoin is slow to change, transaction speeds are too slow for a global payment system. The community is reluctant to embrace novelty, and the rate of new innovation in comparison to nearly every other blockchain is tortoise like. Fortunately for Bitcoin, I believe it's slow and steady pace will ultimately be its superpower. This year, Ethereum will undergo a radical upgrade known as the merge. The event scheduled for mid September will change the underlying consensus mechanism that allows blockchains to function from something like Bitcoin's proof of work system to a more experimental model called proof of stake. It's a development that has been underway for years. Vitalik Buterin, the cofounder of Ethereum announced that a Paris based Ethereum conference that after the merge, Ethereum was still only 55% complete. There's a list of upgrades to Ethereum slated for the next two decades. The Ethereum community, buterin caution should learn to expect short term pain and long-term gains. The mentality of development opens Ethereum up to a new possible futures, but also risk. Herein lies the opportunity for Bitcoin, an opportunity to embrace its slow rate of change so that it can become the world's most valuable forever database. A forever database is a gift to humanity. I've heard blockchains described a million different ways an immutable ledger, a shared system for recording data, a growing list of records secured by cryptography. All of this is fine, but for the average person these explanations are confusing. The simplest definition of a blockchain is a forever database. Maybe you're a total beginner and you can't picture a database. No problem, and if forever database is one in which when you write data, that data is stored, well forever. Due to a series of design decisions, blockchains are immutable. Theoretically, the data store becomes a bulletproof record of truth for thousands of generations to come. Since Bitcoin went live on January 3rd, 2009, the network has never gone down, been hacked or stopped storing new data. Bitcoin is also a currency that can't be inflated by selling point that has become the network's chief use case. The bookkeeping is never wrong. Imagine that being able to trust that 1000 years from now that your data and money will still be accessible. Not only that, but people living many generations into the future could verifiably trust this ledger is true. That's powerful. Forever databases enable novel use cases beyond money like instruments, which are primarily being explored on networks beyond Bitcoin. Mike boj's crypto art project zero X infinity allows you to publish love letters the site claims will last forever or as long as the Ethereum network is running. Are we as a file storage system that claims to store documents and applications forever and starling labs as a project that, among other things, has uploaded 56,000 Holocaust survivor testimonials to preserve evidence of human rights abuses and protect against future disinformation. A forever database ensures the integrity of our collective memories in a way that previous databases could not. And yet, consistency is the key ingredient. As long as Ethereum, Solana, and other blockchains continue to upgrade their code base, they can't compete on consistency. In early 2022, the Solana blockchain, known for its move fast and break things mentality, suffer two outages, each of which took the network down for several hours. The key superpower that makes a blockchain forever database is being resilient to outages, a forever database should never go down. If it does, let's just call it database. For Bitcoin to thrive, users need to do more than just hold their money. Bitcoin needs to become productive. There's an opportunity for bitcoiners to harness the power of their forever database through the use of additional layers. CG lightning or stacks so that they can build new applications. The race to embrace layers. Stacks is an example of a layer that adds programmability to Bitcoin. With stacks clarity smart contracts you can create applications, social networks, photo sharing apps, chat apps, with the underlying transactions are secured by Bitcoin. On Ethereum similarly, polygon is a popular layer developers used to scale the Ethereum network. The difference is that if Ethereum were to fail, polygon and all of Ethereum's additional layers would follow, falling like a House of Cards. We need a new layer, one that can access bitcoins forever database. It and only it can be a complete system on which we build the future.

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