Bitcoin's Evolution: From Digital Gold to Economic Backbone

According to Cointelegraph, Bitcoin's journey from a peer-to-peer cash system to its current status as digital gold has sparked debate among both critics and supporters. Originally envisioned by Satoshi Nakamoto in 2008, Bitcoin was not intended to remain static. However, its functionality as a form of money remains a topic of discussion. In a recent episode of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson engaged with Eli Ben-Sasson, co-founder of StarkWare, who shared insights on Bitcoin's potential transformation. Ben-Sasson outlined a framework for Bitcoin's evolution, emphasizing the importance of scaling its foundational principles rather than abandoning them. He identified three core pillars essential for Bitcoin's widespread adoption: broadness, integrity, and verifiability. These technical targets, according to Ben-Sasson, are crucial for enhancing Bitcoin's usability. He highlighted the potential impact of reintroducing the opcode OP_CAT, which could make Bitcoin programmable once again with just "nine lines of code." Currently, Bitcoin is often perceived as a store of value, akin to digital gold. However, Ben-Sasson envisions a future where Bitcoin functions as a digital economy—permissionless, inclusive, and suitable for everyday transactions. This shift requires rethinking Bitcoin's purpose and upgrading its operational framework. "If we don’t make Bitcoin more useful, we risk making it irrelevant," Ben-Sasson warned. The discussion also delved into the politics of Bitcoin governance and the role of zero-knowledge proofs and layer-2 solutions in creating scalable, decentralized systems. The conversation further explored the challenges of building a monetary system that serves everyone, not just the technically adept or financially privileged. Ben-Sasson emphasized the need for a system where any two parties can transact without a trusted intermediary, stating, "We are not in a situation where Bitcoin is a system that today can allow any two parties to transact without any trusted intermediary. We're simply not there. To me, that's the start, middle and end of the reason why things need to change." For those interested in the full discussion, the episode is available on Cointelegraph’s Podcasts page, Apple Podcasts, and Spotify.