Adam Back, one of the first Bitcoin developers and the CEO of Blockstream, has intervened in the debate about what he calls “Jpeg Spam” in the Bitcoin block chain.
Back argues that he undermines the central purpose of cryptocurrency as money in a thread in x (previously Twitter) on Friday.
Bitcoin should be considered “property of humanity” with developers who act as “butlers” who require user consensus to change the network materially, Back said. That principle, he added, was reinforced during the wars of the size of a 2015-2017 block, when the user-directed economic pressure prevented the miners from pushing through changes in the protocol.
Back pointed to the wave of JPEG’s inscriptions: images stored directly in Bitcoin through the update of Taproot and the ordinal protocol that helped generate.
The number of JPEGs integrated in Bitcoin’s largest book has increased from 88 million in May 105 million in September, an increase of 20%. Rates linked to these inscriptions total approximately 7,000 BTC ($ 777 million).
Bitcoin Central Mission
Meanwhile, the proponents of the developments enabled by the update of taps, such as the orderly, argue that while the users are willing to pay for the block space, they are a valid use of the network.
Being a system without permission, I should not have dictated what can and cannot be used, since this goes against the spirit of decentralization on which it was built.
In addition, the “JPEG spam” also strengthens the economic incentive for the miners to maintain the Bitcoin network, which could become increasingly vital as the block rewards they receive are reduced by 50% every four years.
While the miners benefit from higher rates, Back argues that the effect is minimal once the hashrate has increased and the costs are taken into account. He estimated that JPEG inscriptions can contribute only 0.1% to mining profits, surpassed with very possible reputational damage, higher transaction costs for ordinary users and accessibility reduced to the central function of Bitcoin as a system of money parized to the same.
Divided community
Therefore, the problem is divisive in the Bitcoin community.
Supporters see inscriptions as legitimate economic activity and the use of the block chain. Critics, including setback, say they waste the block space and displace the activity that strengthens Bitcoin’s value.
The back floated possible remedies, including the scope of miners and pools to discourage the processing of such transactions and the changes at the wallet level that could direct the rates towards those who reject them. While warning about the risks of centralization, he suggested that even the small economic pushings could make JPEG’s mining inscriptions not profitable.
Read more: Bitcoin’s debate on the most loose data limits recalls the dispute of divisive ordinals
