THE Bitcoin Podcast LYN ALDEN & STEVE LEE: Analyzing Bitcoin Consensus: Risks in Protocol Upgrades (THE Bitcoin Podcast)
Nov 18, 2024
Lyn Alden, a renowned macro analyst in the Bitcoin sphere, teams up with Steve Lee, who leads Block's open-source Bitcoin efforts. They delve into the dynamics between self-custodied investors and larger institutions during hard forks, revealing how smaller players can significantly influence the market. The duo explores Bitcoin consensus, discussing the varied roles of stakeholders, protocol upgrade risks, and the fragility linked to mining centralization. Join them as they unpack the complexities of Bitcoin's evolving landscape and the importance of community engagement.
AI Snips
Chapters
Transcript
Episode notes
Self-Custody Power
- Self-custodied Bitcoin holders wield disproportionate influence in the network, especially during hard forks.
- They can react faster than large entities, setting prices efficiently.
Report Overview
- The report analyzes Bitcoin's consensus upgrade process, including risks, from technical and economic viewpoints.
- It aims to demystify consensus, stakeholders, and game theory.
Bitcoin Consensus Explained
- Bitcoin consensus involves objective rules for transactions and blocks, defined in the software code.
- Changing these rules requires navigating complex game theory as individual code changes don't force network-wide adoption.