Bitcoin has been around for over a decade, and during that time, it has faced many criticisms. One of the most common criticisms is that the Bitcoin base layer is slow and unchangeable. However, in this blog post, we will explore why the slow and unchangeable nature of the Bitcoin base layer is a feature, not a bug. Here are five reasons why:
#1 – Security
One of the primary goals of Bitcoin is to be a decentralized and trustless currency. The Bitcoin base layer achieves this by using a consensus mechanism called Proof of Work (PoW). PoW requires miners to compete to solve complex mathematical problems to validate transactions and add new blocks to the blockchain. This process takes time and consumes a significant amount of energy. However, it is what makes Bitcoin’s base layer so secure. The difficulty of mining new coins means that it is challenging for any single entity to gain control of the network.
#2 – Store of Value
Another important feature of the Bitcoin base layer is its ability to act as a store of value. The limited supply of Bitcoin means that it is resistant to inflation, unlike fiat currencies that can be printed and inflated at will. The slow and unchangeable nature of the Bitcoin base layer helps to ensure that the currency remains a store of value. The difficulty of mining new coins means that the supply of Bitcoin grows at a predictable and limited rate. Additionally, the inability to easily change the base layer means that the underlying rules of the currency are unlikely to change significantly.
#3 – Resistance to Censorship
The slow and unchangeable nature of the Bitcoin base layer also makes it resistant to censorship. Any attempts to manipulate the blockchain would require a majority of the network’s computing power, making it nearly impossible to censor transactions or manipulate the currency’s rules.
#4 – Innovation
The slow and unchangeable nature of the Bitcoin base layer has also spurred innovation in layer 2 solutions. The Lightning Network, for example, is a layer 2 solution built on top of the Bitcoin base layer that allows for faster and cheaper transactions. It works by creating a network of payment channels between users, allowing for instant and low-cost transactions without the need for miners to validate each transaction on the blockchain. The Lightning Network leverages the security of the Bitcoin base layer, ensuring that any attempts to manipulate transactions on the network would require a majority of the network’s computing power.
#5 – Stability
Finally, the slow and unchangeable nature of the Bitcoin base layer provides stability. The inability to change the underlying rules of the currency means that investors can be confident in the long-term value of their holdings. This stability makes Bitcoin an attractive asset for investors looking for a hedge against inflation and a store of value that cannot be easily manipulated.
While the slow moving nature of the Bitcoin base layer may seem like a bug to some, it is actually a feature that provides unparalleled security, resistance to censorship, stability, and the ability to foster innovation in layer 2 solutions like the Lightning Network. As Bitcoin continues to mature, we can expect to see more innovative solutions built on top of the base layer that leverage its unique features to create new use cases and applications.