BitMEX explains why Ethereum has more dapps than Bitcoin, arguing that the community pushed developers to other ecosystems in 2014 due to the conservative mindset, so read more today in our Latest Bitcoin news.
BitMEX research shows that Ethereum has eclipsed BTC as the center of dapp activity in crypto and while there are technical reasons behind it, the team claimed that BTC developer culture before the Ethereum’s launch was pushing other use cases away from the ecosystem. The report explored online discussions from 2014 between Bitcoin Core developers regarding the application layer. They started with the launch of the Counterparty protocol earlier this year with a layer 2 solution to work on new tokens and trade them on a distributed exchange.
The counterparty uses OP_Return to store data which is a type of transaction output that cannot be spent so that the function can be used to burn BTC and store arbitrary data in the blockchain as explained by BitMEX. Some say these transactions help scale BTC because they don’t require pruned BTC nodes to store the data. This makes running the Node less storage intensive for the average person and helps BTC retain decentralization.
In 2014, Bitcoin contributor Jeff Garzic began to criticize CounterParty’s use of the BTC blockchain space and argued that the function’s storage of arbitrary data could be negative and that more scalable solutions like sidechains already exist. Counterparty developers agreed with Garzik’s position and they asked to discuss solutions with BTC core developers on how they can survive while using Bitcoin blockchain security.
Bitcoiners have done little to support any protocol, and developers and mining pool operators have forced BTC nodes to store unexpected transaction types. Like Garzik, he recommended a merge-mined sidechain as the venue for these alternative uses of blockchain data. The operator named Luke-Jr angered members of the Counterparty community whose arguments centered on trying to dictate what the BTC blockchain was supposed to be used for. Others argued that the counterparty’s transactions constituted the financial transactions and were in accordance with the BTC nodes agreed to store. Based on the overwhelming reaction from the community, BitMEX suspects that this moment is what drove developers away from BTC to work on projects like Ethereum.
Ethereum also has properties that make it more user-friendly, like faster block times and less conservative block size constraints.
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