Prepare, brace your self. Studying this may enrage and confound you, it would confuse you, you may even get mad sufficient to punch your display screen (don’t try this.) Think about this a set off warning.
Bitcoin is a database. Interval. That’s what it’s. The blockchain is a database for storing previous updates to have the ability to reproduce the present state of that database, the UTXO set. Your complete Bitcoin protocol is constructed across the database. What’s a sound entry in that database, and what’s not a sound database entry? Who’s allowed to suggest entries to that database, how do you make sure that solely these customers’ entries shall be thought of and accepted? What’s the authentication mechanism limiting writing entries to this database? How do you throttle database entries so that individuals can’t make so many it overloads or crashes the software program managing the database? How do you make sure that folks can’t make single entries which are massive sufficient to trigger different denial of service considerations?
It’s all concerning the database.
Proof-of-work? Your complete goal of that within the protocol is to handle who can truly course of updates to the database. Bitcoin is supposed to be a decentralized system, so it wanted a approach for the database to be up to date in a decentralized approach whereas nonetheless permitting customers to return to consensus with all their particular person copies of the database on a single replace to it. If everyone seems to be simply updating their very own copy of the database by themselves, there isn’t any approach everybody will come to consensus on a single model of the database. For those who depend upon some authority figures to deal with updates, then the replace course of just isn’t actually decentralized. This was the purpose of POW, to permit anybody to course of an replace, however not with out incurring a verifiable price in doing so.
Proof-of-work is just a decentralized mechanism for updating a database.
Your complete peer-to-peer community structure? It exists solely to propagate proposed database replace entries (transactions), and finalized database updates (blocks). Nodes verifying transactions as they enter their mempool? It’s to pre-filter proposed entry updates to the database and guarantee they’re legitimate. Nodes verifying {that a} block meets the required issue goal? It’s to pre-filter a proposed database replace and guarantee it is legitimate earlier than passing it on to different nodes to replace their native copy.
The peer-to-peer community exists purely to reconcile a number of copies of the identical database.
Bitcoin script? It actually exists for the only real goal of functioning as an authorization mechanism for entries within the database. So as to delete an current entry within the present database state, the UTXO set, a consumer proposing that replace should present authentication proof assembly the situations of the script locking the prevailing database entry. Solely current entries, or UTXOs, may be “spent” to be able to authorize the creation of recent entries into the database. Miners are the one ones within the protocol allowed to create entries with out assembly the situation of eradicating an current one by assembly the authorization necessities set out in it’s locking script.
Bitcoin script is just a mechanism to manage and prohibit who can write to the database.
Each single side of what Bitcoin is revolves across the core central perform of sustaining a database, and making certain that many community members all retaining their particular person copies of that database stay in sync and agree on what the present state of the database is. The entire properties that make Bitcoin worth as a type of cash, or a method of fee, are actually derived from the way it features as a database.
Many individuals on this house suppose that this database must be used solely for a method of fee, or a type of cash, and I empathize with that view. I too suppose that’s crucial use case for it, and I feel that each effort must be taken to be able to scale that exact use case as a lot as attainable with out sacrificing the sovereignty and safety of with the ability to instantly work together with that database your self.
However it’s nonetheless only a database if you boil all the way down to the target actuality of what Bitcoin is. Folks keen to pay the prices denominated in satoshis to write down an entry that’s thought of legitimate underneath the principles of that database can achieve this. There may be nothing you are able to do to be able to cease them in need of altering what is taken into account a sound entry in that database, which entails convincing everybody else to additionally undertake a brand new ruleset concerning what’s a sound entry.
Folks can freely compete throughout the consensus guidelines to write down no matter they need to this database, so long as they pay the prices required of the principles and incentive construction of mining to take action. Interval. Are most of the issues folks can and are coming into into the database silly? Sure. After all they’re. The web is plagued by thoughts numbing quantities of silly issues in siloed databases everywhere. Why is that? As a result of individuals are keen to pay the fee to place silly issues in a database.
Whether or not that’s customers of the database paying the supplier and working, or the operator themselves permitting sure issues to be entered as a part of operations with out passing the fee to a consumer, is irrelevant. These silly issues solely exist someplace in digital type as a result of ultimately, the fee is paid to take action.
Bitcoin is essentially no completely different from some other database in that regard. The one distinction is that there isn’t any singular proprietor or gatekeeper dictating what’s allowed or not. Each proprietor of a duplicate of the Bitcoin database is able to permitting or not permitting no matter they need; the issue is that if they select to refuse one thing that everybody else finds acceptable, they fall out of consensus with everybody else. Their native database is not in sync with the worldwide digital database that everybody else is following and utilizing.
For those who discover sure database entries unacceptable, then by all means change the principles your native copy validates new entries towards. However that’s reducing off your nostril to spite your face. On the finish of the day Bitcoin runs on one easy axiom: pay to play. If folks pay the price, they get to play. That’s simply the way it works.
On the finish of the day, it’s solely as much as each particular person what they need to permit or not permit of their database, however reducing by way of all of the semantics and philosophical debates happening proper now one factor stays unquestionably and objectively true: Bitcoin is a database.
