Bitcoin network fees and the complexity of running a Full Node

Recently, some emerging applications on the Bitcoin network have sparked discussions about network fees and resource consumption. Projects like BRC20 tokens have led to an increase in transaction fees and a sharp expansion of the UTXO set, which may have long-term effects on the network.

There are some common misconceptions about Bitcoin transaction fees. Firstly, the term "Gas fee" is not applicable to Bitcoin; it is designed for Ethereum. Bitcoin's transaction fees are calculated based on the size of the transaction, rather than the computational complexity. Secondly, while projects like BRC20 do cause network congestion, what is even more concerning is the rapid growth of the UTXO set, which increases the storage and processing burden on Nodes.

Running a Full Node is crucial for the health of the Bitcoin network, even though it may not bring direct economic benefits. Full Nodes allow users to independently verify transactions, protect privacy, and maintain the network's decentralized characteristics. It also gives users more say in contentious upgrades, as demonstrated by the BIP 148 proposal during the Segregated Witness upgrade process.

The design concept of Bitcoin is to limit the power of any one party to protect individual freedom. This stands in stark contrast to some cryptocurrency projects that pursue centralized power or idolize leaders. Bitcoin aims to create a system that is free of single points of failure, resistant to censorship, and protects personal property rights.

Overall, understanding the complexity of the Bitcoin network and its fundamental design principles is crucial for evaluating current challenges and future development directions.