In today's fierce competition among digital currencies, Bitcoin has always occupied an important position. The summary of China Consensus and Mining Council reveals the many problems and challenges faced by the Bitcoin network. We will explore these issues in depth and analyze them from multiple angles in order to provide deeper thinking on the future development of the Bitcoin network.

Challenge 1: Energy Consumption

The mining process of the Bitcoin network requires a large amount of electricity, which leads to huge energy consumption problems. According to the Mining Council, the Bitcoin network consumes as much electricity annually as many developed countries combined. This high energy consumption not only puts great pressure on the environment, but also raises concerns about sustainable development. To address this issue, consensus bodies have made recommendations to promote green mining technologies, such as utilizing renewable energy or improving mining efficiency to reduce energy consumption.

Challenge 2: Network Security

The decentralized nature of the Bitcoin network makes it vulnerable to cyberattacks. Recent data shows that cyber attacks occur frequently, posing great risks to the security of user assets. China Consensus calls for strengthening network security measures, including improving node verification mechanisms and strengthening data encryption technology, to ensure the safe and stable operation of the Bitcoin network.

Challenge Three: Scalability

The transaction speed of the Bitcoin network is limited and can only handle a limited number of transactions per second, which leads to transaction congestion and high handling fees. To address this challenge, the Mining Council made recommendations to optimize blockchain technology and increase network throughput. At the same time, consensus bodies have also called for the development of more efficient second-layer solutions, such as the Lightning Network, to improve the scalability of the Bitcoin network.

Challenge Four: Regulatory Compliance

As an emerging financial instrument, Bitcoin faces many regulatory compliance challenges. The Chinese Consensus believes that strengthening regulatory compliance is the key to protecting the rights and interests of investors and preventing financial risks. The consensus body recommends establishing a sound digital currency regulatory framework, strengthening exchange supervision, and standardizing market order to promote the healthy development of Bitcoin and other digital currencies.

Future Outlook

Although the Bitcoin network faces many challenges, we believe that through the continued efforts of the consensus body and the mining parliament, these problems can be effectively resolved. In the future, with the continuous advancement of technology and the increasing improvement of supervision, the Bitcoin network will usher in more stable and sustainable development. The coexistence of consensus and challenges is the source of power that promotes the continuous development of the Bitcoin network.

In this era of surging digital currency, we need to work together to face the challenges of the Bitcoin network and explore the future of digital currency. I believe that under the guidance of consensus, the Bitcoin network will usher in a brighter future!

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Bitcoin Cash supporter Javier Gonzalez has announced the launch of an interesting protocol called the Bitcoin Mining Parliament (BMP). The theory behind BMP is based on the Nakamoto Consensus
Consensus) "Miners are the executors of Bitcoin" and "Any required rules and incentives can be executed through this consensus mechanism."

Establishing a virtual and transparent Bitcoin mining parliament

The Satoshi system created more than 10 years ago
Nakamoto changed the lives of many people and even changed the course of history. There are many advantages to the technology released by Satoshi Nakamoto, but one of Bitcoin's core innovations is the Nakamoto Consensus, a method that keeps the network in a state of effective consensus despite imperfect information. Nakamoto Consensus uses proof of work, block selection, and a reward structure to incentivize network participants to act cooperatively.

There is some debate over whether non-mining nodes have power versus the high concentration of computing power among mining nodes, and Gonzalez believes miners are the enforcers of Bitcoin for a variety of reasons. Developers have launched a new open source protocol called the Bitcoin Mining Parliament (BMP), and a mining pool called Bmp.virtualpol.com for miners to use the protocol. Currently, the BMP project's readme specification details that the platform is still in early testing, but the tool is currently in use; at the time of writing, there are 124 miners participating in the BMP pool, and the interface shows how to use computing power to mine a certain vote on some matters.

Gonzalez’s BMP theory paper explains: “Miners can write things in proportion to their computing power in a proof-of-work based network blockchain, and can also make extreme decisions with sufficient consensus. , writing legal empty blocks in the chain supported by the minority (that is, the minority must obey the majority) to trigger its collapse is beneficial to the network supported by the majority group and their long-term interests.”

The paper further points out: Thanks to the most secure and reliable voting system known, miners can execute with great flexibility, accuracy, and timeliness, recording their decisions in a publicly verifiable manner. Therefore, miners have the upper hand in Bitcoin, and they never act alone because they are a group of allies with no conflict of interest (other than competing for computing power). According to Gonzalez’s BMP theoretical paper, he believes that a “virtual and transparent Bitcoin Mining Parliament (BMP)” needs to be established. In this parliamentary miner group, every participant has a voice and can "vote by percentage"; BMP can reach agreements on certain features, resolve future conflicts, and even designate legal spokespersons for the network; they will work with Bitcoin’s user and developer communities create closer and more accurate connections.

Nakamoto Consensus ensures that rules and incentive policies can be implemented

Gonzalez maintains that Satoshi created the role of miners because the network's governance model required delegation to a higher entity that was more powerful than one person or a small group of developers; miners were rewarded for doing so, Gonzalez Arguing that their interests would remain consistent, he also claimed that understanding such predictable patterns and relationships was "an expression of the Nakamoto Consensus."

The paper from BMP’s creators explains: “If this information is ignored, each dispute will make the blockchain more fragile – accepting the consensus mechanism means empowering miners to exercise their full legal power over the blockchain. Come out." Likewise, accepting this reality indefinitely guarantees compliance with the last line of the last page of Satoshi Nakamoto's original paper:

“Any necessary rules and incentives can be enforced through this consensus mechanism.”

Have we ever used the Nakamoto Consensus Test to resolve disputes?

Of course, this topic has caused controversy, especially among those who do not believe that miners are responsible for the execution of the network. From the perspective of many, Nakamoto Consensus has not really been used during controversial times like Segwit2X. For example, the infamous User Activated Soft Fork (UASF) never happened because Segwit2x was cancelled. More than 80% of the computing power is trying to activate
After Segwit was willing to implement Segwit2X, miners never tested their strength by expanding the block size. This was due to the cancellation of the block expansion event (Segwit2X) due to the threat of a large short-selling group in the United States, which was never reported on social media. So the question remains: could the majority of miners at the time scale and avoid the UASF problem by leveraging Nakamoto Consensus? We will only know if Nakamoto Consensus is used in this disagreement.

Through concepts like BMP, the mining governance model can basically avoid such conflicts or end the weak minority chain without giving it a chance to survive. The BMP white paper states that “miners can take responsibility better than anyone else to prevent the risk of such an incident happening again.”
Gonzalez believes that humans tend to get entangled in these conflicts, and "with multiple development teams competing, it is only a matter of time before a confrontation - to solve this problem, miners must assume their enforcement roles." Gonzalez said that when BMP will be a constraining force when most of the computing power is involved.

Parliamentary group governing miners could work without changing BCH protocol

Gonzalez is convinced that BMP’s ideas can be implemented in various ways without changing the Bitcoin Cash protocol or mining operations. The basis of BMP is registered users who can verify their computing power. Gonzalez explained that in each block’s coinbase transaction (metadata that can store information in the block reward), the mining pool will publish “the address of the primary miner in multiple outputs, indicated in the OP_RETURN corresponding to each Percentage of miners’ computing power”. Gonzalez also stressed that BMP
is an "open source tool and is not responsible for actions taken by third parties."

Each miner's individual hash is calculated using his quota, which is signaled with the hash registered in the block. A mining pool can never control more hashrate than shown in its block. In this way, each miner will be able to demonstrate his strength outside of the blockchain in proportion to his hashrate percentage.