In his keynote at BTC Prague 2024, Jack Mallers, Founder and CEO of Bitcoin startup Strike, delves into the differences between Bitcoin and other cryptocurrencies. Mallers emphasizes the use of proof of work as the primary differentiator, highlighting its importance in ensuring trust and security without relying on a trusted third party. He explains that Satoshi Nakamoto believed proof of work was the only solution to make peer-to-peer e-cash work effectively.
Mallers goes on to describe the digital age we live in, where virtual representations are abstractions of reality. He compares digital tools to maps, offering new perspectives but remaining as tools, not substitutes for the real world. He explains how computers and digital technologies reflect the significance we assign to circuits, creating abstract experiences that can be manipulated. Mallers illustrates abstract power in the digital age using Mark Zuckerberg as an example, showcasing how social media can influence thoughts, actions, and relationships without physical power.
Additionally, Mallers discusses the transition of the US dollar from the gold standard to a fiat standard, showcasing the shift from physical constraints to abstracted realities that require trust. He credits Adam Back for addressing the problem of email spam by introducing hash cash, which required proof of work. By connecting the physical world to the virtual realm, proof of work makes it the only physically real thing on a digital screen. Mallers argues that proof of work is inclusive, decentralized, and verifiable, providing a safe means of protecting Bitcoin.
Mallers critiques proof of stake systems, such as Ethereum, as being based on abstracted realities that lack physical constraints. He plays a video of Vitalik Buterin describing proof of stake as creating a simulated universe with its own laws of physics. Mallers argues that proof of stake systems detach cryptocurrencies from physical reality, making them susceptible to manipulation by entities like BlackRock. He emphasizes that Bitcoin’s reliance on proof of work ensures it can be defended by honest actors using physical power.
In conclusion, Mallers stresses the importance of understanding the distinctions between Bitcoin and other cryptocurrencies. He believes that educating people about the significance of proof of work is crucial in comprehending the unique value of Bitcoin. Mallers asserts that Bitcoin is equitable and fair compared to altcoins like Ethereum, which frequently alter monetary policies and reverse transactions. He concludes that there is no second best in the world of cryptocurrencies, with Bitcoin standing out for its trust, security, and reliance on physical power for protection.