Although many Bitcoiners subscribe to laissez-faire political and economic beliefs of the libertarian variety, some “invisible politics” has reared its ugly head in the ‘Bitcoin Community’ thanks to the digital currency’s scaling issues. The growth of Bitcoin has created a variety of social governance problems that have left many in the ‘Community’ confused.
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Bitcoin Governance
While focus has been largely on scaling Bitcoin at the technical level to make room for increasing transaction demands, the distributed governance of Bitcoin itself has proven difficult.
“There are two types of governance. Governance of a specific software project and governance over consensus rules,” submits Eric Lombrozo, Bitcoin developer and CEO of Ciphrex. “For historical reasons, the two have been conflated in the minds of many people.”
Mr. Lombrozo suggests problems could manifest in several ways. “Governance over a particular software codebase doesn’t require universal agreement over all changes as long as it remains compatible with the existing network,” he says. “It’s only when compatibility is broken that it creates issues that affect everyone in the community.”
Further adding questions to Bitcoin’s social issues, when former Bitcoin developer Mike Hearn left Bitcoin for R3CEV, he lamented how Bitcoin had become “completely controlled by just a handful of people.”
Benevolent Dictator?
Critics have claimed Bitcoin needs a “benevolent dictator” to expand and onboard an increasing number of transactions. “Someone, or some group, must decide how to meet users’ requirements,” Reuters reported on the opinions of some in the Bitcoin space.
Cornell Computer Science professor, Dr. Emin Gun Sirer, cites Ethereum, a blockchain smart contract model, and its “benevolent dictator model” as a working example of distributed governance.
Vitalik Buterin, Ethereum founder and main programmer, in effect holds controlling decision-making power over that open-source creation community, some say (even though those who disagreee can fork the network).
Mr. Buterin has defended this model. “Over the last couple of years it’s become apparent that having a static protocol is just not a viable approach,” Buterin said at a blockchain conference. “Software has to evolve … and there has to be some mechanism for agreeing on how software is going to upgrade.”
Mr. Lombrozo points out, however, that Ethereum’s ‘benevolent dictator’ could not stop a split in the Ethereum blockchain, resulting in an duplicate version dubbed ‘Ethereum Classic.’
Gavin Andresen, Bitcoin’s former Chief Scientist, has discussed in YouTube videos how Bitcoin has evolved from a similar model after pseudonymous founder Satoshi Nakamoto’s departure.
“If you go back in history, it was really simple. It was whatever Satoshi decided at the beginning. That’s really where we started. We had one source code. We had one [pseudonymous] person who made all the decisions about what should Bitcoin be, how should it evolve, and what should it do,” he said.
