Bitcoin Co-Founder Sees Scaling as Key to Future

Bitcoin, as envisioned by Satoshi Nakamoto in the 2008 white paper, was designed to be a peer-to-peer cash system, not merely a store of value. However, today, both critics and supporters of Bitcoin often agree that it does not function like traditional money, at least not yet.

In a recent episode of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson engaged in a conversation with Eli Ben-Sasson, the co-founder of StarkWare and a prominent figure in cryptographic scaling. Ben-Sasson presented a compelling vision of how Bitcoin can evolve by scaling its core principles rather than abandoning them. He outlined three key pillars that need to align for Bitcoin to fulfill its promise: broadness, integrity, and verifiability. These pillars, according to Ben-Sasson, are concrete, technical targets for Bitcoin’s widespread adoption and usability.

Ben-Sasson highlighted that the tools to achieve these targets already exist. One significant step could be the reintroduction of the long-dormant opcode, OP_CAT, which he described as "nine lines of code that would make Bitcoin programmable again." This change could potentially transform Bitcoin from a digital store of value into a more functional digital economy, characterized by permissionless, inclusive, and everyday usability.

Ben-Sasson emphasized the need to rethink Bitcoin's purpose and upgrade its functionality to make it more useful and relevant. He argued that if Bitcoin does not become more practical, it risks becoming obsolete. The conversation delved into various aspects, including the politics of Bitcoin governance, the role of zero-knowledge proofs, and layer-2 solutions in building scalable, decentralized systems.

Ben-Sasson also discussed the broader implications of Bitcoin's principles, such as decentralization, transparency, and security, in addressing the flaws of traditional financial systems. He noted that Bitcoin's decentralized nature prevents the concentration of power and reduces the risk of corruption, making it a resilient and trustworthy financial system. The transparency of Bitcoin transactions allows for public verification, enhancing accountability and reducing fraud. The security of Bitcoin, achieved through robust cryptographic protocols, ensures the immutability of transactions, providing a high level of security for users.

These principles can be applied to other financial technologies, such as smart contracts and decentralized finance (DeFi) platforms. By leveraging Bitcoin's core values, these technologies can create a more inclusive financial ecosystem that benefits a broader range of users. This approach could lead to the development of financial services that are more accessible, transparent, and secure, ultimately addressing the issues that plague traditional financial systems.

In conclusion, Ben-Sasson's insights highlight the potential of Bitcoin's three pillars to transform the financial landscape. By embracing decentralization, transparency, and security, the financial system can become more equitable and resilient, benefiting everyone, not just a privileged few.