by • Bitcoin’s security will rely increasingly on transaction fees as the block subsidy drops.
• Threats from powerful institutions may arise if miners lack sufficient revenue.
• Developers must prioritize network security while leaving room for innovation.
The Challenges Bitcoin Will Soon Face
At some point, less than ten years from now, the block subsidy will drop below one bitcoin — and continue its decay at each subsequent halving epoch. This means that the security of the network will rely more and more on transaction fees alone. We should expect, in that same period, that the powerful fiat institutions of the world will become keenly aware of what a serious threat Bitcoin is to their hegemony. If transaction fees are insufficient to sustain broad and distributed miner activity, then there may be an opportunity for those powerful institutions to control enough hash rate to attack the network.
Ensuring Network Security
In order to ensure the continued security of the network, the ecosystem of miners must be robust and widely distributed. It is incumbent upon miners to seek out attractive energy sources, to be prudent in capital planning and to maintain operational excellence. Unfortunately, if there is simply not enough accessible revenue to go around, all of the best practices in the world will not be enough, and miners will be forced to shut down and sell their ASICs.
Precautionary Principle
Since the Blocksize War concluded in 2017, improvements to the network have been extremely difficult to implement due to an obsession, correctly, with the security of the main chain. Given its importance, skepticism toward a proposed improvement of Bitcoin Core’s code is reasonable and desirable. That said, resisting all proposals in the name of precautionary principle is counterproductive in event that a proposal contributes towards security of network . Developers should function as custodians aiming perfect he network , rather than gatekeepers who stagnate it .
Two Critical Issues
Bitcoin , like other protocols ,will ossify at some point – however , there are two critical issues which are vital remedy before it hardens permanently . The first is uncertainty that transaction fees suffice secure they can work as they need while making sure they keep up with inflation levels . The second , which related indirectly first one , developers without place permissionlessly safely innovate useful fee – generating features for networks .
Conclusion
We , as community , must take this threat seriously resist becoming complacent idea somehow Bitcoin’s success preordained requiring no further effort our own . Given importance ensuring secure future networks we must strive together create just society where our children can inherit legacy wealth created ours actions today .
