Bitcoin limits: can it support more than 21 million bitcoins?
Regarding digital currencies like Bitcoin, the concept of rarity is crucial. One of the most widely accepted Bitcoin advantages is its limited supply – only 21 million bitcoins will ever exist. However, this hypothesis was disputed by certain observers who argue that the current design of the protocol, including a 51%attack vulnerability, could potentially allow that unlimited number of bitcoins exists.
The 51% attack vulnerability stems from the operation of the Bitcoin network. With more than 50% of the mining energy controlling the network validation process (that is to say the «51%» rule), a malicious entity can manipulate the process of creating blocks and preventing new blocks To add, which allows them to effectively control the entire network. This vulnerability has been exploited by various individuals and organizations in the past.
So, is it possible for more than 21 million bitcoins to exist if the Bitcoin protocol allows an unlimited number of minors? Let’s explore this concept more.
How the design of the current protocol limits rarity
The Bitcoin protocol is designed with several mechanisms aimed at ensuring a limited offer. Here are some key aspects:
- Proof of-work (POW) : The process of verification of transactions and creation of new bitcoins is based on complex mathematical calculations, called «atmosphere». Miners argue to resolve these hashs in a breed type process, using their powerful computers. To win, they have to resolve the hash faster than anyone.
- Energy consumption
: The creation of a new block requires a significant computing power, which is now largely provided by specialized mining platforms. As the network evolves, energy consumption also contributes to greenhouse gas emissions and environmental concerns.
- Transaction costs : Minors are encouraged to participate in the validation process not only via their calculation power but also through transaction costs (which are paid in new bitcoins).
- Bloc reward : The block reward is a fixed amount of new bitcoins allocated to minors for having created a new block, which has been gradually reduced over time.
Can more than 21 million bitcoins be created?
If the Bitcoin protocol allows an unlimited number of minors, it is theoretically possible that certain individuals or groups can handle the network to create an unrelated offer from Bitcoins. However, this scenario would require a fundamental change in current design.
Here are some ways to happen:
- Centralized mining : If more than 50% of the mining power is concentrated in the hands of a single entity, they could potentially control the entire network and create new blocks without anyone checking them or would not validate them.
- Algorithmic multisig portfolios : This type of wallet allows several users to control an account, effectively creating several «signatories» which can validate transactions and create new bitcoins.
- Systems based on smart contracts : Some blockchain platforms develop systems based on smart contracts where the creation of new bitcoins is linked to specific actions or conditions, rather than exploitation Traditional mining.
Although these scenarios are theoretically possible, they also raise important concerns concerning the security, transparency and decentralization of the Bitcoin network.
Conclusion
In conclusion, although the concept of unlimited Bitcoins supply seems attractive, the current design of the protocol, including the 51%attack vulnerability, limits rarity. Any attempt to create an unrelated offer from Bitcoins would require a fundamental change in the underlying design, which is not currently possible with consumer technology.
As with any digital currency, it is essential to be aware of these limitations and potential vulnerabilities when using or investing in bitcoin and other cryptocurrencies.
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