Hey OP Return To The Fundamentals! #Core #Node #Bitcoin
Video Transcript:
What price would you pay? What price should you pay to be able to store information online forever? And what we mean by online is someone else’s computer. And this is the debate right now happening in the Bitcoin community as to how much nonmonetary information should or shouldn’t be stored in the Bitcoin blockchain. And what is the Bitcoin blockchain? It’s other people’s computers all around the world, the Bitcoin nodes. And guess what? The Bitcoin nodes are volunteers. Bitcoin mining fragmented out into its own industry. Originally, people used to mine with their own laptop and they had their own mining, producing their own blocks, earning their own Bitcoin, storing it in their own wallet. Running a wallet has fragmented into apps and platforms and now ETFs and all these sorts of things. Bitcoin mining, the computational energyintensive aspect of running a node, has fragmented into its own multi-billion dollar industry. Energy and finance have fragmented out into these massive industries when it comes to Bitcoin. But guess what hasn’t changed? The node running through the middle. And these volunteers, they’re not paid to add Bitcoin blocks. They are simply storing the Bitcoin blockchain. Because if we trusted one computer, we’ve got 100% trust in that one computer. That is centralization. But if we store that ch same transaction file of database monetary units updated by all the miners all around the world and those updates are sent to all of the nodes of the network. If there’s not one computer but a thousand computers, we’ve distributed the trust among a thousand people. It shifts the percentage to trustless. And it’s not just a thousand people. There’s tens of thousands of Bitcoin nodes and all of these different pieces I’m going to delve into in a much longer video looking at the fact that Bitcoin nodes sit at the heart of the blocks based unit of account market phenomena which is people with Bitcoin paying to store transaction information and the Bitcoin miners being paid to update that blockchain and add that transaction information into the blockchain. But who sits in the middle between this market phenomena of energy and finance? It’s the Bitcoin nodes, the volunteers. And if we impose more cost because of more data on the volunteers of the network, there might be less of them. More cost means less people. We can see it has happened with Bitcoin mining that less and less people are able to mine relative to the technical, electrical, and financial frictions of actually getting into mining. The future of node running and keeping that cost low is fundamental to the success of Bitcoin as an energybased data money. Thank you for listening and I hope you enjoy.
