Bitcoin’s block-size dispute rages on. A proposed change to a single parameter in Bitcoin’s reference implementation has spawned into a great debate, resulting in tireless discussion, multiple conferences , a growing split within the Bitcoin community and at least one prominent developer joining a bank-run alternative.
The subject of debate itself, moreover, started out in the technical realm, predominantly relating to the increased propagation time of larger blocks, and the level of mining centralization. Over the past year, however, the same debate mostly moved into the political domain, leading to the big question of governance, and the spawning of several competing Bitcoin implementations.
But interestingly, these two domains – the technical and the political – are not necessarily separate. Not only do some technological trade-offs require political decision-making, political decision-making can sometimes be influenced by technological trade-offs.
The block-size limit provides an outstanding example.
Social Implications of Technology
A widespread belief within the Bitcoin community (often employed to excuse the currency’s notorious use on darknet marketplaces) is that all technology – including Bitcoin – is neutral, and can be made to serve various ends. Like a hammer, which can be used to build a house or bust someone’s scull, Bitcoin is claimed to be detached from ethics: a mere means. Some even follow this argument to conclude that Bitcoin’s block-size limit must be raised simply because there is demand for increased transaction capacity, as if a dictate by some force of nature rather than a conscious decision.
But this neutral perception of technology in general, and of Bitcoin in particular, is false. Design choices can greatly impact what a technology is used for, and especially when made in the early stages of a its development.
To illustrate this, let’s explore the evolution of another technology: the bicycle. Shortly after the bicycle was first invented […]
