Fueling every Bitcoin transaction is a script that is providing the instructions that are a recording with each transaction. This simple scripting system describes how the next person who is receiving those Bitcoins can access and spend them as well as ensures the transaction is completed in a specified amount of time.
To take ownership of Bitcoins, the spender must give a public key that provides the correct destination address.. The script that accompanies that currency typically includes the destination as well. They must also provide a signature (ScriptSig) that shows evidence that the private and public key correspond.
The stack-based, left-to-right processed scripting system was enacted by Bitcoin to direct changes to the framework for spending the cryptocurrency. In this simplistic system, each script operation modifies the global stack of operations and either becomes valid (with the presence of a ‘1’ on the top of the stack or invalid (anything else on the top of the stack) after which the script terminates. It is not Turing-complete, which means that there are no loops, and has a limited instruction set of stack manipulation, arithmetic, and cryptography.
Using five script types, this flexible tool offers a good strategy for what has become an evolving transaction process. The growth and development of more applications naturally attracts more developers and business minds. The opportunities incude all types of transactions and access to the assets connected to those transactions, including a mortgage, will, and fundraising campaign.
Improving Upon Existing Bitcoin Scripts
Before exploiting all the transaction opportunities that are on the horizon, there are Bitcoin scripting limitations to address. However, the limitation is not in the actual simplicity of the scripting; as this is what keeps miners willing to put the effort into validating the transactions. If the scripting was complex, it would be expensive and time-consuming – therefore, demotivating to miners to validate.
So, if the limitation is not in its simplicity, what needs improving? Bugs will always pop up with any scripting. Consequently, the incompleteness of the scripting language leads to inability to use opcodes. Some believe the Bitcoin’s developer, Satoshi Nakamoto, only added the scripting language as an afterthought to his original design when he looked ahead to potential transaction types. In previous versions of Bitcoin, hackers found a way to steal other people’s Bitcoins through these bugs.
The bugs
While Bitcoin has addressed these bugs and the ability to steal coins as well as opened up a collaborative online environment for improving its script system, there are other reasons to keep working toward improving the existing scripting language. Since then, others have looked at Bitcoin’s scripting language as the foundation for creating something much more powerful with significant application capability. From there, Ethereum was born. We learn about the potential future of this scripting language through Ethereum, and the bright future it could have.
Just two years ago, Ethereum was just a project in process looking for funding. Today, it has shown just what it can do with Bitcoin’s simple scripting system. The team behind Ethereum built their blockchain with the scripting system as a model. Except Ethereum’s blockchain supports multiple programming language that lets you do all types of things, creating new applications for games, smart contracts, online storage devices and more.
Essentially, it has taken the original idea of validating transactions and elevated it to attract the masses across numerous industries. The motivation to improve the Bitcoin scripting system has also helped the development of consumer-directed solutions through facilitating decentralized applications. To do so, however, has required that the original Bitcoin scripting system be transformed into a Turing-complete programming language. Consequently, this adds complexity that allows for the creation of contracts. According to a white paper on Ethereum, these contracts “can be used to encode arbitrary state transition functions, allowing users to create any of the systems described above, as well as many others that we have not yet imagined, simply by writing up the logic in a few lines of code.”
Bitcoin: Stepping Stone or Still Relevant?
With a dynamic and disruptive change to the framework, many wonder if Bitcoin and its scripting system are still relevant; at least to where the transaction environment is now heading. In fact, some are referring to Ethereum as Bitcoin 2.0, suggesting that it will eventually replace Bitcoin.
For now, though, there are many who are still willingly using Bitcoin. It gains more acceptance among retailers, brands, and businesses as a secure way to transact for goods and services worldwide. There very well may be room for both Bitcoin to continue revolutionizing money and payments; while Ethereum leads the way with revolutionary application opportunities. Either way, Bitcoin’s scripting system has been the impetus for multiple changes in all types of industries and businesses. This will provide that complexity is not always a necessary ingredient for disruptive change.
