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Part 4: Bitcoin Isn't Very Decentralized

β–ˆβ–€ atoshi never solved the discovery, coherence, trust, privacy, and

β–„β–ˆ coordination problems in a decentralized way. Bitcoin uses a list of hard

coded IP addressesβ€”just like the Tor networkβ€”to solve the discovery and

coherence problems. When you start up a node and want to (re-)connect, it

connects to one of those hard-coded IP addresses to link to the network. This

is a fundamental weakness in Bitcoin's resistance to state sponsored attack,

which we can anticipate if Bitcoin ever becomes a serious competitor to a fiat

sovereign currency such as the USD.

The other primary problem with Bitcoin is the exchange of Bitcoin addresses

between users that wish to send bitcoins (i.e. coordination). There is no

secure in-band solution provided by the Bitcoin network. This forces users to

invent their own means for handling the communication. Also, there is no way to

comply with financial regulations without exchange of KYC credentials and OFAC

check proofs (i.e. trust). There's no way to trust those credentials without

secure communications (i.e. privacy) with anchored DIDs (i.e. trust). The

Bitcoin never was never really designed to support proof-based compliance of

any/all regulations. At some point it will need to if it wants to avoid legal

sanction and banning when it becomes the only stable currency left.

This non-decentralized and non-solutions for the distributed systems problems

makes large Bitcoin exchanges such as Coinbase inevitable. By not addressing

those problems, Coinbase has cornered the market for casual Bitcoin

investors and is now valued at more than $8B.

Coinbase Now Worth $8B

Without fully decentralized solutions, Bitcoin is exposed to both state-

sponsored attack as well as corporate capture by corporations like Coinbase

that threatens the independence of the network and harms the sovereignty of

Bitcoin users. There's a real possibility that the governments of the world

will plunge us into a global economic meltdown with hyperinflationary fiat

currencies *before* Bitcoin gets properly hardened to withstand the innevitable

government attacks. History may overtake Bitcoin if we don't harden it today.

Uncle Satoshi wants YOU to help decentralize Bitcoin today!

β–ͺ .

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β–ˆβ–€β–€β€ƒβ–ˆβ–‘β–ˆβ€ƒβ–ˆβ–€β–€β€ƒβ–ˆβ–€β–€β€ƒβ–ˆβ–€β–ˆβ€ƒβ–ˆβ–€β€ƒβ–ˆ

β–ˆβ–„β–„β€ƒβ–ˆβ–€β–ˆβ€ƒβ–ˆβ–ˆβ–„β€ƒβ–ˆβ–ˆβ–„β€ƒβ–ˆβ–€β–„β€ƒβ–„β–ˆβ€ƒβ–„

. β–› β•Ώ β–‹

β–Ž β–ͺ β•΅ β–Ž .

▏ β•΅ ▏

▏

β–Ž

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