I recently came across a great report from 1A1z About “Bitcoin Finance”. I was surprised to learn that Jack Dorsey funds more than 60% of Bitcoin Core development via different organizations: more than $5 million per year, out of just $8.4 million in total funding. Wild, right? For $1.2 trillion in assets, I expected more diverse support.
Now, you may be concerned that this focus might expose him to too much influence. If he turns against COR’s principles, his funding clout could be a real concern.
But does Dorsey’s power really extend to control of Bitcoin itself? No, no way. The decentralization of Bitcoin means that no single entity can dictate the terms, not even the major donor of the main Bitcoin implementation.
Here’s the main difference: Bitcoin Core vs Bitcoin Network. Core adds useful features, but people choose which nodes to run. If the Core goes rogue, people will reject its changes or use different software.
Therefore, Dorsey cannot force changes to Bitcoin. His influence has strict limits, even if he decides to dictate to developers what to work on or what to pay. Nodes hold the real power in Bitcoin’s development. (You can read more about Bitcoin Core management here: Who controls the underlying Bitcoin currency? By Jameson Loeb.)
However, I believe there should be more donors and organizations funding Bitcoin Core or other applications. Many cryptocurrency companies benefit and earn millions in monthly profits, depending on the success of Bitcoin, but surprisingly they contribute nothing. Ideally, people should also fund different Bitcoin applications in addition to Bitcoin Core.
Bitcoin will only flourish through decentralization. We need to apply this spirit to Core funding as well. Dorsey’s funding focus challenges this, while spreading out his donor base protects Bitcoin’s antifragility.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.