Bitcoin 2016: Apolitical Money Challenged By Politics This Year
Eric Lombrozo who is a Bitcoin Core developer and CEO of a software company Ciphrex recaps a fraught year in the development history of BTC in a review. He states that I started on working to develop the bitcoin applications in 2011 and at that time, I assumed that it was just a fairly stable protocol that will unlikely to be changed in the drastic ways.
New challenges for consensus networks
It is an extremely challenging problem to extend or modify the decentralized consensus protocol. When dealing with a distributed financial ledger in particular, it is vital that all the people come to agree with its state and no one will be able to game it in an unfair manner or violating the existing contracts during any stage of an update. In 2015, the bitcoin encountered its first challenge of major protocol upgrade.
The technical upgrade becoming political challenges
The year of 2015 marked an important turning point for the bitcoin. A change was proposed for the first time that will alter the incentives and will be certain in breaking the compatibility in methods that would not only need extensive logistical coordination. However, it also leads to controversies that need that kind of cooperation for smooth transition difficult.
Political challenges becoming challenges for society
He says that for the few years I am working on Bitcoin Core and already familiar with the difficulties, which arises in an open-source and free software developer. I felt the whole bitcoin network for the first time was threatened potentially by the tensions of the rising community.
Moving beyond politics
In 2016, a new term hard fork enters the popular lexicon. This year, the world watches the occurrence of the contentious hard fork on the consensus network having significant capitalization. The DO hacking causes the ethereum network for splitting into two separate networks. In simple words, the hard fork can be defined as any change in the rules of the decentralized network.