Exploring the Future of Reusable Proof-of-Work Networks

In a thought-provoking conversation on social media platform X, Jason Lowery, an experienced astronautical engineer and a Major in the US Space Force, engaged in a deep dive into the potential and sustainability of Reusable Proof-of-Work (RPoW) networks. This debate, ignited by a query from Rabbit Hole Investor (@rabbitholeinvst), delved into whether nations might devise unique proof-of-work systems to rival existing networks. Lowery, renowned for his “Softwar” thesis, underscores Bitcoin’s pivotal role in safeguarding US national security.

Can Nation-States Challenge Bitcoin With Their Own PoW Networks?

The conversation took a deeper turn when Rabbit Hole Investor questioned Lowery about the prospect of new reusable proof-of-work networks emerging for alternative applications. Lowery drew from his interactions with the White House Office of Science & Technology Policy to provide insights.

Advertisement Banner

A Singular Dominant RPoW Network

Lowery posited that while future predictions are inherently uncertain, he envisions the emergence of a singular, dominant RPoW network. This network, he argues, will gain universal acceptance akin to how TCP/IP became the global standard for data transmission. He noted, “Network size directly correlates with security in RPoW, creating a strategic consolidation of applications into a single network.”

The Reinforcing Cycle of Security

According to Lowery, the security of an RPoW network is inherently linked to its computational power and energy expenditure, which creates a self-reinforcing cycle. This dynamic naturally incentivizes participants to gravitate towards the most secure and largest network. He introduced the concept of “Mutually Assured Preservation,” suggesting that even adversarial nation-states, such as NATO and BRICS, would emerge as strategic allies within the same RPoW network. The cost of conflict would rise to a level that transforms adversaries into “frenemies,” collectively enhancing the network’s security.

Bitcoin’s Role as the De Facto RPoW Standard

Lowery asserts that Bitcoin undeniably stands as the preeminent RPoW protocol due to its market forces and network effects. While avoiding the label of “Bitcoin Maximalist,” he acknowledges Bitcoin’s current position as the leading global PoW standard. Thomas Young, Managing Partner at RUMJog Enterprises, further explored this by questioning the practicality of individual Bitcoin ownership in a world where nations might adopt Bitcoin as “The Standard.”

The Future of Bitcoin Ownership and Yield

Lowery responded by expressing a belief that if Bitcoin becomes a global unit of account, its purchasing power would naturally grow with human productivity, rendering the pursuit of yield unnecessary. He cautioned against promises of yield in a future where governments might use executive orders to seize custodial Bitcoin. Lowery warns, “If a nefarious leader were to offer yield incentives to relinquish self-custody, they could easily nationalize entities like NYDIG, Coinbase, and MSTR.”

Nation-States and Sovereign Networks

Another query to Lowery pertained to whether sovereign entities might create their own networks, potentially using sidechains or drivechains connected to the main Bitcoin network. Lowery compared PoW and Proof of Stake (PoS) in terms of centralization, suggesting that PoS offers a more straightforward path to centralized control. He noted that PoS allows for pre-mining of tokens and vote-based systems that maintain centralized governance while presenting a facade of decentralization.

Game Theory and the Dominance of a Single Network

Lowery’s overarching theme suggests that both individual and national game-theoretic pressures favor the consolidation around a singular, most secure PoW network. He argues that Bitcoin’s scale and entrenched position provide it with a significant lead that is challenging to overcome. While nations may experiment with alternative protocols, they face significant challenges in competing with a network already embraced by the free and open market.