Decade Retrospective
A fresh year has begun, and as is customary in this digital age, social media is abuzz with predictions for “what to expect in 2020!” Instead of just focusing on the immediate year, I’d like to broaden the scope and consider the entire decade ahead. However, before we gaze into the future, it’s essential to take a moment to reflect on the past decade (yes, I’m aware I’m slightly behind schedule, but bear with me) to truly appreciate the remarkable progress that has been made.
Mining and Network Security
Back in 2010, the Bitcoin network’s security was maintained by everyday hobbyists using their desktop computers. Any well-resourced entity could have easily overwhelmed this system. Fast forward to the beginning of 2020, and we see a network fortified by billions of dollars worth of specialized hardware. The sheer energy consumption of this network rivals that of entire small countries, with numerous multi-billion dollar companies supplying the necessary infrastructure (admittedly, some valuations are speculative, but the scale is undeniable). Over these ten years, the security framework of Bitcoin has transformed dramatically, moving from individual enthusiasts with readily available hardware to sophisticated ASIC technology and professionally run data center operations.
Protocol Development
In 2010, Bitcoin transactions were quite rudimentary for the average user. You could send Bitcoin to public keys or IP addresses, implement timelocks on transactions (but only on the transaction itself, not UTXOs), and utilize raw multisig, which was cumbersome and expensive. And yes, famously, a bug allowed anyone to spend coins via OP_RETURN. While the script system was more capable even then, practical usability for the average person was limited. In 2020, the landscape is vastly different, and to illustrate this, let’s look at key advancements:
- P2SH was introduced to make sending funds to more complex scripts (like multisig) more cost-effective for senders.
- The ability to timelock a UTXO to a specific block height or Unix timestamp became possible.
- UTXOs could now be timelocked to a relative block height or a time interval starting from their creation.
- Transactions could be constructed with non-malleable TXIDs thanks to Segregated Witness, crucial for second-layer protocols and transaction chaining. (SegWit also brought easier script upgrades through versioning, addressing the limited number of undefined OPs available for new script functions. Witness versioning offers a way to add new features without depleting these scarce OPs.)
- A preliminary, developing version of the Lightning Network, a second-layer solution enabled by the malleability fix in SegWit, was available.
- Sidechains, where more advanced and experimental features can be deployed and tested more easily, were actively deployed.
The last decade has yielded an impressive collection of foundational elements for building upon Bitcoin’s core network and blockchain. This is especially remarkable when considering the inherent challenges in achieving consensus on upgrades, and the subsequent complexity of implementation and deployment.
Political Relevance
Back in 2010, Bitcoin was a mere flicker on the radar, barely registering. The CIA had just begun to take notice and show interest, a response that involved inviting a developer for a discussion, coincidentally followed by Satoshi Nakamoto’s disappearance. Beyond this, mainstream attention was absent – politicians, agencies (except perhaps certain undisclosed Alphabet initiatives) were largely unaware. Bitcoin existed in obscurity.
By 2020, Bitcoin had catalyzed an entire market and industry valued at hundreds of billions of dollars. Cryptocurrency exchanges had amassed billions in revenue from trading fees. Miners collectively earned billions in return for their operational investments. Tens of millions, potentially hundreds of millions, of individuals held Bitcoin (precise metrics are elusive and difficult to interpret definitively). The shift is stark: from minimal CIA interest to virtually every significant government globally holding regular legislative or committee sessions to analyze Bitcoin and its broader macroeconomic and geopolitical ramifications, and to strategize their responses. Nations have launched their own cryptocurrencies and imposed sanctions on cryptocurrency addresses. Bitcoin has unequivocally earned a seat at the global table. In 2010, perhaps only one agency known for its pervasive reach was paying attention (as far as we know); today, the entire world is watching.
The landscape has been transformed. As the saying goes, stopping this train is no easy feat.
This article is a guest contribution from Shinobi. The views expressed are solely those of the author and do not necessarily represent the opinions of BTC Inc or Bitcoin Magazine.
