What is Bitcoin? (part 2)

If an entrepreneur is determined to obtain a cryptocurrency exchange license, they should keep in mind that the Bitcoin protocol is being constantly updated. If an individual user follows the same rules, they remain online. A unilateral attempt to change or modify them results in them not being able to understand other users & being expelled from the system.

Exposure to Coding Errors

A coding error detected by hackers in 2018 enabled them to disable bitcoin apps remotely & reuse bitcoins multiple times. The bug was quickly fixed but it left many users wondering whether a similar error could cause the same amount of damage. There were also many questions regarding how resilient Bitcoin was to inflation.

What should be kept in mind here is that it is Bitcoin users who make the rules, not the software. Thus, if you’re about to launch an ICO and at some point attempt to modify the rules, then the resulting "cryptocurrency" will be rejected by other users & end up being stillborn.

A potential vulnerability can be fixed by rearranging a blockchain’s pattern and thus eliminating the damage inflicted by hackers. What it means is that a bitcoin network will be divided into 2 separate networks, each of which will have their own tokens - with & without errors. The number of tokens owned by each Bitcoin user will be identical; however, their value will depend solely on the amount of money other users are prepared to expend on them.

Once you’ve made a decision to apply for a cryptocurrency exchange license, you should keep in mind that bitcoin tokens are ‘valueless’. Determining their value is the exclusive prerogative of other users. 

Once the rules are successfully automated and synced, the Bitcoin software temporarily stops syncing. A social contract is then treated as a reference point to which the software can revert whenever it needs to. 

Forking

Anyone can modify or change Bitcoin’s programming code. However, these changes (referred to as forks) can only be made at the protocol level. Unless they’re approved at the social level, they’re doomed to quick extinction & subsequent expulsion.

If an entrepreneur wants to get a license for cryptocurrency activities & don’t want their network to die immediately, they’ll have to persuade other users that they'll benefit greatly from them. Basically, tokens get their value on the basis of a consensus reached by multiple users. Remember - forming a protocol isn’t tantamount to drawing up a new contract. 

There’s nothing new about Bitcoin - it simply gave an old contract a new lease on life. What makes it different from other attempts is that its safety is ensured by a hyper-competitive marketplace that it creates.