BitMEX Explains: This Is Why Ethereum Has More Dapps Than Bitcoin

BitMEX explains why Ethereum has more dapps than Bitcoin, arguing that the community pushed the developers towards other ecosystems back in 2014 because of the conservative mindset so let’s read more today in our Bitcoin latest news.

The BitMEX research shows that Ethereum dwarfed BTC As the center of dapp activity in crypto and while there are technical reasons for the discrepancy, the team claimed that the BTC developer culture before Ethereum’s launch drove other use cases away from the ecosystem. The report explored online discussions from 2014 among the Bitcoin Core developers that pertain to the application layer. They started with the launch of the Counterparty protocol earlier this year with a layer 2 solution for working on new tokens and trading them on a distributed exchange.

The Counterparty uses OP_Return to store data which is a type of transaction output that is unspendable so the function can be used to burn BTC and store arbitrary data in the blockchain as BitMEX explains. Some say that these transactions help scale BTC as they don’t require pruned BTC nodes to store data. This makes running the node less storage intensive for the average person and helps BTC retain the decentralization.

Back in 2014, Bitcoin contributor Jeff Garzik started criticizing CounterParty’s use of BTC blockchain space and argued that the function’s storage of arbitrary data could be negative and that more scaling solutions like sidechains already exist. The Counterparty developers agreed with the Garzik stance and they asked to discuss solutions with BTC core developers on how they can survive while still utilizing the security of the Bitcoin blockchain.

Bitcoiners did little to support the lesser protocol and the developers and mining pool operators forced BTC nodes to store unexpected transaction types. Like Garzik, he recommended a merge-mined sidechain as a place for these alternative uses of the blockchain data. The operator named Luke-Jr got quite the anger from members of the Counterparty community whose arguments centered around the attempt to dictate what the BTC blockchain was meant to be used for. Others argued that the Counterparty transactions constituted the financial transactions and were in line with the BTC nodes agreed to store. Based on the overwhelming reaction from the community, BitMEX suspects that this moment is what drove developers away from BTC to work on projects like Ethereum.

Ethereum also holds properties that make it more user-friendly like faster block times and less conservative block size constraints.