The new version of the Bitcoin Core software
Bitcoin Core is the software with which Bitcoin nodes can be managed. It’s not the only one, but it’s by far the most widely used, as it’s reportedly installed on 14,729 of the 15,295 public nodes currently under investigation.
A new version, 24.0, is expected to be released soon, but there is controversy about it.
The new version of the Bitcoin Core software
Version 22.0 is currently available and the next one is already in the release candidate stage. So it may be released soon.
There will be some important new features in the new version, such as how nodes download blocks when they sync with the network.
However, the controversy centers on the introduction of an additional option that will allow users to use full replacement-by-fee (RBF) logic.
Until now, Bitcoin Core nodes used the “first seen” rule, meaning conflicting transactions were simply not accepted into the mempool. In the new version, users will be able to choose to have their nodes accept and forward any conflicting transactions if they include a higher fee than the other transactions they are conflicting with.
RBF, what is it?
RBF (Replace by Fee) allows users to replace an unconfirmed transaction with an alternative transaction with a higher fee until it is placed in a block.
However, the scheme only works with zero-confirmation (0-conf) transactions, that is, transactions that can be accepted even before a miner confirms them by placing them in a block.
The problem is that in the new version of Bitcoin Core, full RBF logic will be built in, which will make it possible to replace transactions that have not yet been confirmed. According to some, this will harm the network and even facilitate double-spending attacks.
It should be mentioned that such arguments have been there since version 12, but have intensified recently due to the expansion of Lightning Network (LN).
Lightning network
The most skeptical is the founder of LN Muun, Dario Sneidermanis.
Sneidermanis says Muun’s theme examined the Bitcoin Core 20 release candidate and found some troubling things specifically about the full-opt-in RBF implementation. According to Sneidermanis, zero-conf apps like Muun are forced to disable zero-conf functionality, which means even going as far as disabling outgoing LN payments.
The question is debated, but the point of the question is whether adding full-opt-in RBF functionality to Bitcoin Core creates problems for LN transactions.
For example, according to Bitcoin Core developer David Harding, this update will not significantly change the substitutability of transactions.
The controversy surrounding Bitcoin Core’s new software version
Therefore, the whole case is still wide open.
On one side, there are LN supporters who claim that the new version of Bitcoin Core software will harm the Lightning Network, while on the other side, there are Bitcoin Core supporters who claim that the new version will not harm LN.
For now, since Bitcoin Core version 24 is not yet in use, there is no clear data to prove beyond doubt which side is right, and so the controversy is likely to continue.
It is worth noting that no one can prevent Bitcoin Core developers from releasing a new version with full opt-in RBF functionality, so it is very likely that the new version 24 will be released as it is now in its release candidate.
Only when its use is widespread will it be possible to say whether it has led to disadvantages for LN or not.
In the meantime, the controversy is increasing, not least because among those who participate there are also some maximalists who are very unwilling to compromise, and generally do not take kindly to those who think differently from them.
The miners’ problems
Meanwhile, it turns out that some miners are having a lot of trouble continuing to mine so low profitability.
In fact, there are quite a few miners who, with the current prices, prefer to hold on to their collected BTC while waiting to sell them at higher prices.
Some, on the other hand, are forced to sell them straight away with minimal gains.
For example, Core Scientific, which has major financial problems due to a $2 million uncollectible claim against bankruptcy Celsiuswas forced to sell nearly 2,300 BTC at an average price of less than $19,700.
Core Scientific is publicly traded, and is therefore required to report important shareholder information to the SEC.
A few days ago it reported that in October it sold 2,285 Bitcoins at an average price of $19,639 per BTC, with a total yield of approx. 44.8 million dollars. It also admitted that as of October 31, it only had 62 BTC, in addition to about $32 million in cash.
In other words, it was forced to sell almost all of the BTC it had accumulated over time and still had cash, probably in anticipation of selling it at a higher price.
It is worth noting that during 2022 the share price went from $11 to $0.16, a 99% loss. The company was listed in April 2021 with an initial price of around $10.
So far, there are no reports of other similar collapses in Bitcoin mining industry, but surely, with today’s prices, there will be other miners in big trouble.
