Prepare, brace your self. Studying this would possibly enrage and confound you, it would confuse you, you would possibly even get mad sufficient to punch your display screen (don’t do 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 round 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 might be thought of and accepted? What’s the authentication mechanism limiting writing entries to this database? How do you throttle database entries so that folks 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 can be giant sufficient to trigger different denial of service issues?
It’s all in regards to the database.
Proof-of-work? Your complete function of that within the protocol is to handle who can really course of updates to the database. Bitcoin is supposed to be a decentralized system, so it wanted a means for the database to be up to date in a decentralized means whereas nonetheless permitting customers to come back 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 is no such thing as a means everybody will come to consensus on a single model of the database. When you depend upon some authority figures to deal with updates, then the replace course of isn’t really decentralized. This was the purpose of POW, to permit anybody to course of an replace, however not with out incurring a verifiable value 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 function of functioning as an authorization mechanism for entries within the database. With the intention to delete an present entry within the present database state, the UTXO set, a person proposing that replace should present authentication proof assembly the circumstances of the script locking the present database entry. Solely present entries, or UTXOs, may be “spent” with a view to authorize the creation of latest entries into the database. Miners are the one ones within the protocol allowed to create entries with out assembly the situation of eradicating an present one by assembly the authorization necessities set out in it’s locking script.
Bitcoin script is just a mechanism to regulate and prohibit who can write to the database.
Each single side of what Bitcoin is revolves across the core central operate of sustaining a database, and making certain that many community individuals 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 beneficial 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 assume that this database ought to be used solely for a method of fee, or a type of cash, and I empathize with that view. I too assume that’s crucial use case for it, and I believe that each effort ought to be taken with a view to scale that individual use case as a lot as attainable with out sacrificing the sovereignty and safety of having 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. Individuals prepared to pay the prices denominated in satoshis to write down an entry that’s thought of legitimate beneath the foundations of that database can accomplish that. There may be nothing you are able to do with a view to cease them wanting altering what is taken into account a sound entry in that database, which entails convincing everybody else to additionally undertake a brand new ruleset relating to what’s a sound entry.
Individuals can freely compete inside the consensus guidelines to write down no matter they wish to this database, so long as they pay the prices required of the foundations and incentive construction of mining to take action. Interval. Are lots of the issues folks can and are getting into into the database silly? Sure. In fact they’re. The web is affected by thoughts numbing quantities of silly issues in siloed databases all over. Why is that? As a result of persons are prepared to pay the associated fee to place silly issues in a database.
Whether or not that’s customers of the database paying the supplier and operator, or the operator themselves permitting sure issues to be entered as a part of operations with out passing the associated fee to a person, is irrelevant. These silly issues solely exist someplace in digital kind as a result of ultimately, the associated fee is paid to take action.
Bitcoin is basically no totally different from another database in that regard. The one distinction is that there is no such thing as a singular proprietor or gatekeeper dictating what’s allowed or not. Each proprietor of a replica 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.
When you discover sure database entries unacceptable, then by all means change the foundations your native copy validates new entries in opposition to. However that’s chopping 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 payment, they get to play. That’s simply the way it works.
On the finish of the day, it’s totally as much as each particular person what they wish to permit or not permit of their database, however chopping by all of the semantics and philosophical debates occurring proper now one factor stays unquestionably and objectively true: Bitcoin is a database.
