Topic: Principles Of Bitcoin (Read 120 times)

Exactly the terms I mentioned above don't really have anything directly related to codes
Hence why I option for principles.
Quoted from Wikipedia
We can see the relation and similarity between the two words.
Sigh Now we discussing English.

My point is quite simple. I'm not saying there has been a successful 51% attack,  since so far from various articles I have read I haven't come across any recorded one. however, my point is there have been attempted ones a couple of times in the past. However since the 51% attack is based mainly on hash rate, those attacks were quickly twhated. Right now with the importance of Bitcoin transactions , the network just can't risk having such an attack. Plus building such amount of huge hash rate isn't an easy thing.

I get your point however Bitcoin is quite technical and choice of words have a significant role to play while passing information. for that reason in a context like this I won't fully agree that principles are same as protocols though they are close in meaning, protocols in this case should involve so sort of program or code rather.

Mia Chloe said it's not very frequent as if successful ones have happened in the past. If it's possible but not frequent, the whole network would have been down. Then incentive system has a way of solving it, if you have such a power to execute attack, you rather use it to earn more BTC to yourself.

Many people haven't even seen or read the 12 paragraphs whitepaper but they talk about bitcoin principles. Satoshi stated everything, from introduction, transaction, incentives, calculations, reclaiming disk space to conclusions. Understanding of the white paper is all that is needed to know the principles of bitcoin.

Yeah I know not all can be set in stone. That's why I specifically used should.

Protocols are like subsidiary of principles
I wanted more room so I used principles instead of protocols
What i mean is all protocols are principles.

Yeah I understand it does but the aim wasn't to explain everything but create some kind of an awareness that would require the readers research more on it.
I gave it in the basic level I could
About the censorship resistance, it's similar to how some studio censor Fuck, shit etc. It means it should the ability of the blockchain users to make transactions in the network without been suppressed.
For example CEX can seize your funds or prevent you from making withdrawal
This is a form of censorship.

They can but who would when they have no idea it even exist
I knew about the white paper but never read it until yesterday.

Funny how I got most of the above from the white paper based on my understanding.
I showed some relation with the white paper by quoting some text from the White paper.

I don't think the possibility should be ruled out
As it becomes harder with higher hash rate needed
Centralization of power start crippling in.
As it becomes harder
Small players starts leaving the industry or joining reputable firm with the computation power for success
This in a sense make it seem like its not fully avoidable
But I think Full nodes increasing and been diversified(not including individuals running more than one nodes) can be still help a bit.

None yet as far as the record shows, but mining pool crossing 51% of the total hashrate, I read that there is an instance where ghash.io did that but they pulled down their computational power. [1]

I think the whitepaper is the right reference if we talk about the Principles of Bitcoin since it is said that it is the foundational document for Bitcoin and outlines the concept of why Bitcoin is created along with the process of how it will be executed.  So without understanding the whitepaper let alone not reading it, I believe it would be hard to understand the real principle of Bitcoin.

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[1] https://www.linkedin.com/pulse/51-attack-demystified-hrishikesh-thakkar
additional reference: https://www.kvarnx.com/content/what-is-bitcoin-whitepaper

Although the 51% attack is very possible, it isn't very frequent because of the fact that it requires a very huge amount of hash rate plus electrical cost would also be very high to be able to run mining farms with such huge hash rates. However if u can remember vividly I think there has been only about few 51% attacks on the Bitcoin networks till date.
The idea is majority of them are quickly twhated . As time goes  on the chances of getting a 51% attack to succeed gets thinner and thinner since it would require more and more hash rate to make it successful. Currently foundry USA has the highest global hash rate and it still isn't up to 51% of the global hash rate although it is close.

This could just be definition of bitcoin terms. Op didn't consider the actual meaning of the word principle. Again, I think what OP did could easily be looked checked out by anyone in the internet. Although still a nice thread.

Immutable ledger is quite different from what is explained above. Meanwhile, has 51% attack ever happened in the bitcoin chain?

Nice compilation Op.
In my opinion I would suggest that these aren't principles but rather they are Protocols . Now my reason for saying so is quite simple.  If you look very closely at every single point you mentioned, they are either directly or indirectly Bitcoin protocols which in simple terms are more like rules which are part of the Bitcoin base code.

As for this part I don't think I will fully agree with that. now this is because it is very possible to reorg recent blocks on the block chain because of the 51% rule. Meaning if for example an evil mining pool is able to generate enough hash rate over 50% the will have the ability to alter recent block and  logically with a greater percentage of the total network hash rate they will have higher odds of being able to reorg a recent block.
I think you should check out quizes by BlackHatCoiner they are nice and have nice explanations about the 51% rule.

Your principles need explanation. I read this several times and could not understand them:


Isn't this a product of decentralization? Mining pools can request KYC before listing your transaction or block or not accept certain transactions, but as long as the network is decentralized, you will find the memepool accepting your transaction.


I do not know what the source of these principles is, but it is better to read the white paper. There are translations of it into most languages.


Principles of Bitcoin must be Bitcoin protocol and bitcoin Protocol features is Security, Unauthorized spending, Double spending, .... https://en.wikipedia.org/wiki/Bitcoin_protocol

Principles could be seen as sets of fundamental assumptions, laws, doctrines, truths, postulations, or propositions that guide or form the foundation for the workings or operations of a system. It gives the public the understanding of how a concept or discovery works. I might be wrong but you have explained nothing about the principles of Bitcoin. I was expecting to see a simple explanation of how the Bitcoin system works which could be helpful to newbies but you simply defined a few concepts about Bitcoin which can be easily gotten from the internet. Maybe you should change the title.

Just like there exist the principle of money said applies to Bitcoin.

Principles of Bitcoin

The principle of Bitcoin are the fundamental proposition that serves as the foundation where the belief system or behavior of Bitcoin. They are the fundamental attributes that makes Bitcoin,Bitcoin.These are

21 million coins: The total supply should never exceed 21million coins (the true total supply is 20,999, 999.9769 if not approximated)

Censorship Resistance: There should be certain resistance to power or individual from preventing valid transactions from being confirmed.

Permissionless: As the name implies, Been in the network should require Nobody permission.It is opened for everyone, there's no gate keeper or guardian whose permission would be needed to join the network. Permissionless is usually used interchangeably with Trustless.
Open-Source: This is a term I believe everyone here has come across one way or the other. Bitcoin source code should always be open for anyone to read modify copy or share.  

Pseudonymous Or Incognito: this principle state that there should be no requirement for IDs to access the network.
Fungible: Every coin, every Sats are equal and should be spent equally.

Immutable: The Blockchain history should never be changed. Every transactions should be irreversible.
Others are Decentralization, peer to peer system, verification of rules etc.
We can tell that from the above, the keyword is should. If Bitcoin starts failing in the above then it starts becoming something else that isn't Bitcoin.
No principle is ever fully perfect because of the unpredictability of human factor.
I would highlight some things that seems like they going against the principle.

Pseudonymous: The advent of KYC goes against this principle. ID's are not needed to use the network but a pseudonym that's your wallet address.

Fungible: the two words I would say is runes.He created runes a non fungible token by placing values on individual Sats. The believers here are of the notion that all Sats are not same and shouldn't be spent equally like we saw an individual buying a Sat for $3.3M won't say stupid but.....

Decentralization: This is some kind of a sore topic but Bitcoin of today isn't fully decentralized and might not get better in the future. One of the prohibited changes even if there come about unanimous decision on bitcoin is introducing centralization. This change can be considered as been against the spirit of Bitcoin and like i said before the end result shouldn't be called Bitcoin.

Now knowing this principles there are certain individuals I call the Bitcoin Police or accountant that helping in keeping this principles in order.The Bitcoin Nodes, but we can't talk about them without throwing some lights in Miners and Developers.

Bitcoin Miners : information on this individuals can be found in the Net and wouldn't want to bore you with them. In simple term they mine Bitcoin like we have mining Gold and help in the security of the Blockchain.
 
Bitcoin Developers : these are individuals that are focused in proposing, designing and optimizing protocols that define the function of the Bitcoin Blockchains. They are involved in BIP(Bitcoin improvement proposals) and if interested you can apply or check ongoing or finished BIPhere

Bitcoin Nodes :Here I would be focusing on Full nodes. They perform quite similar job in the blockchain but ain't rewarded for their actions (miners needs to be rewarded because it's more expensive mining than owning a full node. It can be considered altruistic.
Like I said earlier they are like a security force in the Blockchain and helps in keeping datas and work in accordance with the consensus Rule.

The more Full nodes in the network the better Bitcoin gets Decentralized, this is why it is encouraged to run a full node if you have the capacity.
Full nodes have been on the rise if you check https://bitnodes.io

The 8 year chart of reachable Nodes.

These individuals The miners, developers, and Nodes are needed in the maintenance and running of the Bitcoin Blockchain .

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Funny how despite been reading or learning about Bitcoin and stuff, I have never read the white paper until today.
For those that haven't try it out its worth the time not to mention is barely 8 pages long.
The quoted portion were from the Bitcoin white paper. If you interested in downloading you can try
here.


Warning, This information are subject to Corrections
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