Bitcoin, Crypto currency, Blockchain

Consensus vs. government – Why Bitcoin is not a democracy

With Bitcoin was not invented only a digital means of payment, a new mechanism for the management of the company is manifested in the Protocol: the consensus. What is the difference between consensus and democracy? What is the impact on government and society?

The Ideal of democracy has moved over the past 200 years in the middle of society – democracy as the apotheosis of society. Therefore, decisions should be democratically made, in order to claim legitimacy. In abstract terms, the majority accuses the minority in a democratic decision-making. Democracy is a Form of government.

Bitcoin provides the System to the head

At crypto-conferences you always hear “democratisation of X”, as the destination of the digital Revolution 2.0. But we remind ourselves: this Revolution 2.0 of Bitcoin – the decentralized, Peer-to-Peer Electronic Cash System was entered. The fundamental feature in Bitcoin is in the lead.

At this point, the difference between the government (the English illustrated. Government) and leadership (engl. Governance): The government is the instance, the over the course; in return, the leadership of the process, with the something.

We already know: In Bitcoin there is no Central authority, no government exists to take the decisions. This is not a Bug it’s a Feature. The Lack of a governing instance leads to a unique management mechanism: the consensus.

While in a democracy, the majority over the minority, determined in a consensus everyone about yourself. Participants have the sole decision-making power over themselves and their property. That is, in Bitcoin decides, not the majority , but all, of everyone. Who in the network takes part, agreed implicitly to the rules. All of them are about these rules. Any interaction is based on a voluntary Basis.

Decisions in consensus model

The example of the Block-scaling demonstrates the consensus principle:

In the years 2016 and 2017, dominated by a question of the Bitcoin world: How to Bitcoin is a global payment scale? The answers were so varied as to be contradictory. Two bearings, which pull in opposite directions – “Bigger block!” –No, SegWit!”. A way out of this wireless Dilemma? Finally, there is no instance where it says. The Status quo is maintained. But that was not the end of the story.

After several years of debate, the Bitcoin Protocol showed his true strength. Instead of one or the other camp something to impose, it is in Bitcoin-Land, a third Option. In the words of Dora the Explorer: “Por que no los dos? (dt. “Why not both?”). In fact, this was the solution to the conflict. The Bitcoin-Unlimited-Team forkte the Bitcoin network. Bitcoin Cash realized by the proposed, larger blocks. Bitcoin, in contrast, activated SegWit and implemented a different approach to the solution of the scaling question.

All the users and can decide for themselves. You want larger blocks, to sell his Bitcoin for Bitcoin Cash; you want to SegWit, sold his Bitcoin Cash for Bitcoin; Undecided have nothing to do. If you want to use Bitcoin, or Bitcoin to Cash (or neither) is up to you. Essential: All decisions happen on a voluntary basis.

Hard Forks instead of a majority decision

In a democracy, the majority agree to make a legitimate decision. The consensus is this condition drastically worsened: Here must all be in agreement. There are differences of opinion, forks in the paths. This is called a Hard Fork. Then, two incompatible networks. Within the systems a consensus.

Here the Power of the consensus. He does not tolerate a plurality of opinions and all can live out. Where in a democracy, it is only a variant can win and will be implemented (Trump or Clinton? German Mark or the Euro?), allows the consensus model to each of his ideal world. If larger blocks or Lightning are the right way to go for scaling or not, shows us the time. We will see it, since both approaches exist.

Bitcoin is not a democracy. Although there is no government, there are still leadership. By participation, all implicitly agree to the consensus rules. Decisions are made by all the participants. Everyone decides for himself. Suggestions for improvement will be discussed in the Community. Ultimately, each of the rudder into their own hands and the computer code “forking” – that is, his own Ideal be realized. How many people jump on the Hard Fork, but is on a different sheet.

Leave a Comment