Energy-Space TimeChain! | Bitcoin Education

Video Transcript:

hello there and welcome to another episode from the hash power Academy today’s topic is energy space and time well this is basically an image of uh well a drawing of a zoomed out perspective of the Bitcoin Network and structuring all of the core components of the Bitcoin Network economic energy ecosystem in a structure around energy space time now that may sound cliche but I feel that it provides people with a clear and Broad understanding of how this system stays alive basically and that is to say that producing power is fundamental to all things related to society producing microchips is fundamental to all things in society having a place where transactions and trade and commerce can be settled and secured where enemies can communicate that is fundamental to society and so you got these core technology areas and three core Commodities in between and the flow of energy is clockwise and the flow of Bitcoin is somewhat anticlockwise and let’s run through the pieces we produce power we transfer it across electrical grids we consume it in Bitcoin mining Hardware and we send all of that uh compute power into the digital world compute power is the Wormhole between the physical side and the digital side and what is Hash power producing it’s producing blocks and those blocks are storage space for transaction information Bitcoin data money and the blockchain is well a series of blocks being regulated by space and time and each block is being added by a proof of work which is based on energy and so the difficulty adjustment has a mirror image of energy space and time from The Real World into the digital world I like to refer to the difficulty adjustment as the sort of uh bitcoin’s laws of bitcoin’s physical laws essentially that if blocks are produced too quickly it raises the difficulty adjustment to ensure the the pace of time between each block is about 10 minutes and this is important because if twice as much hash rate comes online without some form of difficulty adjustment blocks wouldn’t be every 10 minutes they’d be every 5 minutes which means that the Bitcoin Supply would be issued twice as fast there’ll be twice as many blocks of data storage space which constrains the amount of settlement that happens in per 10-minute basis roughly and this is important because the fee Market works to a bid a price of priority based on well the best analogy I can provide actually is um block space is like an elevator and everyone’s transactions is are a line of people waiting to get into the elevator and there’s only so much space for a certain amount of transactions in the elevator and nfts are much larger people than the rest and uh all those sorts of things but basically the elevator comes roughly every 10 minutes and ding the doors open because a minor has proven and found the next block in the chain and everyone that gets into the elevator pays the minor the fee to uh get in and go to the settlement layer one A different sort of concept shall we say but overall to sort of build this mental model of all the different subject fields of Bitcoin in a framework of energy space and time as as much as that may sound cliche um it just provides a much broader perspective to know how all the pieces of the jigsaw puzzle fit together because then you can go and learn and deep dive everything to everything to do about producing energy it transferred across electrical grids hardware and the heating systems that are going to be developed and mini miners that are going to be deployed in in people’s houses um District heating systems say in northern Europe where the wasted energy from these mining machines is run into pipes into homes under the under the road and maybe the sidewalks sorry I sound a bit Americanized and um yeah network communication systems being setting up set set up um mesh Nets and all those sorts of things compute power in itself is uh currently being hotly debated as a uh as a security protocol for sort of national Strategic Defense which delves into a completely different realm of things and the blockchain oh my God that is a subject within itself that expands into all different layers and topics and the whole point of this is all of these pieces expand off in their own directions and they are they are their own subject Fields with Professionals in all the different areas and last but not least Bitcoin as money and the financial sector the bit that people are focused on the most and people like to say things such as uh one Bitcoin is one Bitcoin that’s like saying xal X yals Y um I think a better perspective is well the comparison of the fixed Supply 21 million units versus the amount of energy in the system or the amount of hash rate because those are the two strings being pulled in relation to the unit of account economics on this side of things and well as you can see the producers of Power are the supply consumers of Power are the miners hashrate is the supply to produce blocks and the demand for blocks is well adding adding blocks to the chain that’s the mining pools and there’s a few Dynamics where the professionalism of this branch has created this environment where not so many people are Solo Mining and uh polls are essentially people just selling their hash rate to somebody who collectively groups it all together and um probabilistically finds more blocks in reference to a whole pool of compute so it is some aspect of centralization of the issuance power of Bitcoin um but there are solutions to come different prospective um mining pools that are more decentralized focused and focused on ensuring that templates of the transac actions within each block is more on a decentralized focus and that’s the key takeaway here we want all of these core components of the network as decentralized as possible the more the network expands this economic energy framework the more it expands within itself and and the multiplication of itself not just this expanding but multiple versions and duplications um because I I think this this the core components of producing power consuming it into compute and network communications to the blockchain those are the three sort of core components of U the network staying alive it’s fundamental everything here that you see is fundamental to the survival of Bitcoin I think that’s enough for today I hope you enjoyed this video it’s a bit it’s a bit more Broad in context but like I I said every piece of this has its own direction to study so if you have any questions let me know like subscribe all that fun stuff and I will see you in the next video cheers