Understanding of Bitcoin transaction versions: because 4 bytes, not 1 or 2

Bitcoin transactions are unique and consist of a series of eight words that include the sender’s public address, the receiver’s public address, the amount in Satoshis and other metadata. One aspect of these transactions that often stimulate curiosity is the use of four bytes (32 bit) to represent each version number. In this article, we will deepen the reason why Bitcoin developers have chosen 4 bytes as a standard for transaction versions.

The first days of Bitcoin

The creator of Bitcoin, Satoshi Nakamoto, designed the protocol with particular attention to simplicity and decentralization. The first version of the Bitcoin protocol, known as Bitcoin 0.1 (also indicated as Bitcoin-0.1), was released in October 2009. At this point, the transactions were long to 8 words. These words included:

• Public address of the sender

• Public address of the receiver

• Amount in Satoshis

• Version number

The version number was intended to identify the client and the server involved in a transaction.

The transition to Bitcoin 1.0

As Bitcoin 0.1 earned popularity, it became clear that there were problems with scalability and congestion of the network. To respond to these concerns, Satoshi Nakamoto introduced Bitcoin 1.0 (also indicated as Bitcoin-1.0), released in May 2010. This version of the protocol has increased the size of the 8-words transaction.

The new version numbers

With the introduction of Bitcoin 1.0, the version numbers have changed from 0.1 to 1.0. However, Satoshi Nakamoto has maintained the original eight -words format for new versions.

To meet the growing needs of complexity and scalability of the network, the subsequent versions have introduced multiple words:

• Bitcoin 2.0 (issued in August 2017): increase in the count of words from 10 to 12

• Bitcoin Cash (BCH) 1.0 (released in December 2017): has introduced a new block size limit and modified some version numbers

Why 4 bytes?

At this point, it is essential to understand that the structure of four words was not arbitrarily chosen. Satoshi Nakamoto has probably chosen the 32 -bit format for several reasons:

• Memory constraints : In the first days of Bitcoin, the memory was limited. The four -words structure has reduced the amount of data necessary to represent a transaction version.

• Considerations on Networking : Network congestion and latency were concern at the time. The smaller dimensions of each word have made it easier to transmit transactions via networks with limited bandwidth.

• Decentralization and scalability

  : limiting the number of words, the protocol has become more decentralized and scalable. Each customer could have his own version number, reducing conflicts and improving the stability of the network.

Conclusion

The unique Bitcoin transaction format, including four bytes as a standard for each version number, has been modeled over time by the design choices of Satoshi Nakamoto. The decision to use 32 -bit words may have had more factors, but one thing is clear: it has allowed Bitcoin to resize and maintain decentralization, however guaranteeing efficient network transactions.

I hope this explanation helps you understand the reasoning at the base of the 4 -byte version numbers in Bitcoin transactions!

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