Published on: 2017-12-12T14:02:12+00:00
In recent discussions among Bitcoin developers, a solution to the problem of lost Bitcoins has been proposed. It is estimated that around 4 million out of the 16.4 million Bitcoins ever mined are lost due to human error resulting in the loss of private keys. One proposed solution is to implement a Dead Man's Switch, which would cause dormant Bitcoin addresses to automatically expire after a fixed length of time, such as ten years.Luke Dashjr has suggested an alternative solution to increase the divisibility of Bitcoins by extending the range of relative lock-times. Currently, this feature can only be implemented for one year expirations, but Dashjr proposes allowing several years. However, this solution would require integer values larger than 64 bits and could only be implemented on the base layer through a hard fork, which undermines the invariants of Bitcoin.The implementation of the Dead Man's Switch or the extension of relative lock-times would help address the issue of lost Bitcoins. It is estimated that approximately 4 million Bitcoins are lost forever. Dormant addresses would automatically expire after a fixed length of time, and the calculation of miner rewards would take into account expired Bitcoins. However, it is important to note that there is no way to eliminate human errors causing these losses, and the total number of Bitcoins in circulation will eventually reach zero when the cap of 21 million is reached.There are concerns and debates surrounding the proposed solutions. Some argue that the loss of Bitcoins is not necessarily a problem, as Bitcoin is divisible up to 100 million units and potentially more if needed. Others question the morality of expiring dormant Bitcoins, especially in cases where individuals may have placed their Bitcoins in cold storage before passing away. Implementing a Dead Man's Switch could also potentially encourage censorship by miners for people attempting to move their coins.In conclusion, proposals have been made to address the issue of lost Bitcoins in circulation. The implementation of a Dead Man's Switch or the extension of relative lock-times could help prevent the loss of Bitcoins. However, there are concerns and debates surrounding these proposals, including the morality and potential consequences of expiring dormant Bitcoins. The discussion among Bitcoin developers continues, and anyone is welcome to propose and convince others to follow a new chain and code.
Updated on: 2023-08-01T22:19:35.455559+00:00