Using Bitcoin to build a business – The Unilateral Contract | Dr Craig Wright | #LDNBlockchain23

Discover the importance of stable protocols and economic incentives in building a business with Bitcoin. Explore the concept of unilateral contracts, the role of the creator, and the myth of decentralization.

Key takeaways
  • Unilateral contract in Bitcoin refers to a system of economic incentives that needs to be stable.
  • A unilateral contract is more about a system of economic incentives than a binding agreement.
  • Stable protocol is another crucial aspect, as it takes four to seven years to implement significant changes.
  • Uniswap and other decentralized exchanges operate with “atomic swaps” that dismantle rules and protocols.
  • The creator of Bitcoin has more control than you might think, and the community is expected to follow their lead.
  • The unilateral contract in Bitcoin is a commitment to these economic incentives and protocols.
  • The blockchain is not decentralized, as there is still a single point of control and decision-making.
  • The community works under the assumption that the protocol will remain the same forever.
  • The unilateral contract is not static; it evolves over time with changes to the protocol.
  • The importance of having clear and stable protocols, rather than relying on pie-in-the-sky notions like “decentralization”.
  • What people think is decentralized is not truly decentralization, but rather a lack of understanding.
  • The role of the creator of Bitcoin is not just a theoretical one, but also practical, as they must make decisions about the protocol.
  • Unilateral contracts can be used in other contexts, such as between two businesses.
  • Decentralization is not always a good thing, as it can lead to instability and fragmentation.