Bitcoin Scalability – trading with QProfit System


This article discusses bitcoin scalability and possible upgrades to the protocol. The discussion is very tricky, and many users have lost track of the events. You can find out more on trading with the QProfit System and additional successful  tips.

Bitcoin code is open-source. What does that  mean?

First, we need to understand what an open-source code means. Briefly, nobody has the copyright on the bitcoin code. This means it is not commercialized. It is an aspect that contributes to the decentralization of the  coin.

An open-source code assumes that any interested person can see the system in its entirety, study it, make sure it does what it claims. In other words, anyone with programming skills can look under the hood for the engine that puts the currency into operation. Any programmer can retrieve the entire code, pieces of it, relevant fragments, and build its own platform. Satoshi Nakamoto’s system can be used free of charge as a piece of construction in other  projects.

The bitcoin code does not belong regarding copyright to Satoshi Nakamoto. In fact, less than half of the existing code today is the one created by Satoshi in 2009. An open-source protocol assumes that any programmer can propose code changes and commitments on  GitHub.

GitHub – zero point. Firm bifurcation and soft  bifurcation

GitHub is the platform for changes and upgrades to open-source project code. It is a developer space where they can report problems, propose solutions, and add code source code that governs open source software. GitHub has an entire community of programmers who make proposals to bring value to a project. These proposals go through a selection process. The bitcoin network is based on nodes that validate transactions, following deterministic rules that govern their  activity.

All nodes must be governed the same way. If some of the nodes make an update that other nodes have not done, they will work by other rules, they will go at a different pace, and then we have basically two separate battalions. We have two formulas – (1) we have two forces that marched each in his law (firm bifurcation and two different coins); or (2) all nodes accept the same protocol, so are soft backward compatible. In any case, to have unitary cryptomonads, all nodes must speak the same  language.

When there is a majority of nodes that have made a particular update, then it becomes the official update and is synchronized over the entire network. Users who keep an active node (so they have downloaded the blockchain register to their computer, periodically synchronized) will update the new code when the synchronization is done. Miners will be motivated by the market to monetize the most valuable currency, that is, what the market supports and will update the code accordingly. The same applies to wallet developers who will help the dominant money. It is the pure economic decision and the perfect symbiosis. Each user has a direct interest in maintaining the value of the network, and decisions to adopt an update or other influence that  value.

It’s a free market. Let’s say that many nodes have updated from 0.13 to 0.14, which adds support for SegWit. This creates SegWit blocks. It follows that miners are motivated to implement SegWit to meet demand. See more  here.

There is no method of consensus superior to the code. For  example:

1) Because the nodes accept SegWit can include more SegWit transactions in a  block.

2) Because they can add more operations in a block, miners can make more commissions so they earn  more.

3) To be able to meet demand, 95% of miners must have SegWit  active/testable. ”

Who has power over the  network?

Here we can talk about the bitcoin philosophy and the question “is bitcoin centralized?” However, I have described above that the market leader is the economic  value.

Basically, the nodes are the ones that set the new updates in a first step. That’s also practical because the nodes accept all the weight. To simplify, it is a market in which the knots are consumers and  miners.

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Nodes independently validate transactions, store the entire registry individually from the home block to the present, and make the whole network resistant to changes and censorship (you may have encountered the tamperproof term). We have about 6-7000 active nodes validating transactions. It does not mean that the currency protocol power and the code with its updates are in the hands of busy node operators. Miners are not required to maintain an active node. For miners, there is no difference, it does not bring any benefit to supporting an active  node.

They have to find the lucky number; they do not validate the transactions. Miners produce samples of node specifications because for nodes that information is valuable. Miners, when rewarded, get the right to spend the money at the nodes. If the nodes do not agree with the block’s hash or cannot use it to validate and decipher the consistency of the data/information, it will reject it and will not reward the  miner.

The bitcoin ecosystem is populated by multiple types of users, each with a well-defined role. They are all interconnected and must reach a consensus. Miners are the ones who consume electricity to generate new bitcoins on the market. Of course, they can stubbornly go for one code or another, but for the what they make to be feasible on the market, the nodes must validate their blocks. The nodes do not exist either in the ether or the bitcoin wallets. All these categories must reach a consensus to create a functional market. Imagine a tissue machine that has to stitch a cloth with a colorful  pattern.

The weaving machine is programmed to place the blue color at the top, green at the bottom and a yellow circle in the middle. The blue is conforming, the green is fitting, but the yellow works by another code and makes points randomly across the canvas because, in fact, the yellow would want to draw something else. Is anybody winning? Certainly not, because the trend this year is blue and green cloths and the sun in the middle. No one will buy a defective fabric. So all colors have every reason to agree on the same pattern. To say that miners or wallet providers centralize the network or want to take control of the code is like saying that the yellow has gone mad and wanted to draw something else. It’s straightforward to say that bitcoin makes a firm bifurcation that it is divided into two branches that compete, just as it did in the case of ethereum. The truth is, yes, we are likely to see a firm bifurcation, two different branches of the bitcoin. However, one of the two chapters will prove to be dominant, and there is an excellent likelihood that the other one will dry up. The currency history is fascinating and there are a lot of opportunities to win money with it. You just have to be patient, learn everything you need to know until you get to know all there is to know about the blockchain and  bitcoin.