Decoding Bitcoin: An Ever-Growing Entropy Reduction System

The proof-of-work (PoW) mechanism created by Satoshi Nakamoto truly solved a long-standing consensus problem that has troubled humanity—the Byzantine Generals Problem. The core of this problem lies in how to reach an effective consensus in an environment filled with uncertainty and potential betrayal.

From an abstract perspective, this issue essentially explores how to establish order in chaos, which is the process of reaching consensus. In thermodynamic principles, this is equivalent to creating order out of disorder, a process of entropy reduction.

The PoW mechanism addresses this issue by incentivizing miners to participate in computational power competition. Miners compete to find a specific hash value, thereby reaching consensus among a group of originally unordered nodes. This approach not only solves the Byzantine Generals problem but also creates a continuously expanding entropy reduction system.

In the universe, most things follow the law of increasing entropy, ultimately tending towards thermal equilibrium. However, life is an exception. Living organisms form order by digesting negative entropy, achieving a reduction in entropy. From this perspective, the Bitcoin system is essentially a continuously growing living entity that absorbs global computing power through mechanical consensus to sustain its development.

It is worth noting that Bitcoin (BTC) is merely a reward symbol that drives the growth of this living organism, rather than the entirety of the system. The Bitcoin network, as an independent living entity, not only possesses autonomy but also has a social aspect, enabling it to collaborate with other entities to create greater value.

After 16 years of development, Bitcoin continues to grow, while many imitators gradually fade away. For example, after Ethereum shifted to Proof of Stake (PoS), it abandoned the evolutionary system that promotes sustained growth by harnessing global computing power, instead relying on a limited ETH staking rate to create consensus. This mechanism's upper limit may be one of the deeper reasons why Ethereum is gradually falling behind Bitcoin.

These phenomena prompt us to rethink the essence of Bitcoin: as a living entity driven by mechanical consensus, how does it continue to exert social value within human digital civilization? How can this living entity better integrate with human society and unleash greater life energy?

This may be a more meaningful exploration and innovation direction for the next stage in the cryptocurrency field.