History of Bitcoin

LearnHistory of Bitcoin

History of Bitcoin

Here is a brief history of Bitcoin:

SCALING BATTLES – The Bitcoin developer community has disagreed for many years over whether Bitcoin should scale with bigger blocks or remain with small blocks. The group supporting the Bitcoin project using the ticker symbol BTC kept blocks at a tiny 1MB size, and argue it is best to process more transactions off-chain. Other camps believed scaling on-chain was best as originally envisioned by Satoshi Nakamoto. On August 1st, 2017 the BTC group forked off of the original Bitcoin Protocol by introducing a controversial code change called “Segregated Witness” or SegWit – which is designed to remove the tracing capabilities of bitcoin allowing the introduction of off-chain exchange solutions such as the Lightning Network that allow individuals to exchange bitcoin without leaving an audit trail. The introduction of SegWit materially changed the Bitcoin Protocol, and thus constitutes a fork away from the original Bitcoin chain. A new ticker symbol BCH, emerged at that time, to support a version of Bitcoin that sought to follow the original design to increase the block size – ultimately increasing to 32MB blocks.

HASH WAR – Even after BCH emerged its community ultimately became divided into two more factions. One group (led by the Bitcoin ABC implementation) did not want to scale as quickly and kept its block size at 32MB; it also wanted to introduce technical changes which deviated from the Bitcoin Protocol in order to seek a more anonymous system that cannot be traced by government. The other group wanted to build exactly what was described in the Bitcoin White Paper and follow Satoshi’s original vision to massively scaling the Bitcoin Blockchain. This battle led the group using the ticker symbol BCH to introduce significant code changes which meant it forked off the original Bitcoin Protocol. BSV became the new ticker symbol for the original Bitcoin Protocol. This is why November 15th, 2018 is considered Bitcoin Independence Day.

PROTOCOL WARS – The period that describes the fight for Satoshi’s Vision to be realized is referred to as the Protocol Wars. It began during the lead up to the Scaling Battles and it ended just after the Hash War.

APPLICATION WARS – The time period that started just after the end of the Hash War and is currently underway is considered the Application Wars. Businesses and developers are racing to build applications that are powered by the BSV blockchain to be superior to applications that can be built on BTC, BCH, or any other blockchain or distributed ledger platforms. Now the Protocol Wars are over, and the original Bitcoin won, there is a race underway within the developer ecosystem to be the first to build best blockchain use cases. Developers are quickly finding the best place to build them is on the BSV blockchain.

GENESIS UPGRADE – This was a critical update for the Bitcoin SV network that took place in February 2020 to restore the original Bitcoin Protocol as closely as possible to Satoshi’s original design and help lock it down to create stability for developers and enterprises to build upon it. Aside from laying the foundations for unbounded scaling potential, the Genesis Upgrade re-enabled the original Bitcoin script language allowing developers to build on-chain applications easier.