Jason Lowery: Bitcoin’s RPoW Dominance Key to National Security

Bitcoin’s Dominance in Proof of Work: National Security and Game Theory

Jason Lowery, a US Space Force Major and the author of the “Softwar” thesis, recently shared his insights on the future of Reusable Proof-of-Work (RPoW) networks via a discussion on X. He argues passionately that Bitcoin could become the global standard for secure networks, drawing parallels to TCP/IP’s role in data transport.

• Jason Lowery’s RPoW network theory
• Mutually Assured Preservation concept
• Bitcoin self-custody importance

Lowery’s conversation began with a query from Rabbit Hole Investor, leading to a deep dive into how RPoW networks could affect national security and global finance. He believes that the more people use a network, the stronger and more valuable it becomes. This network effect, combined with security advantages, will propel one RPoW network to dominance—Bitcoin being the prime candidate. Lowery’s thesis uses the example of TCP/IP’s universal adoption to highlight the inevitability of a single standard.

Introducing the concept of “Mutually Assured Preservation,” Lowery suggests that even nations with adversarial relations, like NATO and BRICS, might find it in their best interest to support the same RPoW network. This strategic alignment would increase the cost of attacking the network, turning adversaries into “frenemies,” where the security of all parties is enhanced. Lowery’s insight is rooted in game theory, the study of how people make decisions when they know others are making decisions too, where the collective interest in a secure network outweighs individual attempts to undermine it.

However, Lowery warns of the risks associated with centralized control over Bitcoin. He cautions that governments might entice individuals to give up self-custody of their Bitcoin with promises of yield, only to seize it later through executive orders. Companies like NYDIG, Coinbase, and MSTR could be targets for such nationalization efforts. Lowery’s warning is stark: “If I were a nefarious president or nation, I’d lure people into giving up self-custody of their BTC by dangling the promise of yield… Then, with a simple executive order, I’d nationalize NYDIG, Coinbase, and MSTR’s Bitcoin…”

Lowery contrasts Proof of Work (PoW) with Proof of Stake (PoS), arguing that PoS is better suited for centralized control. He asserts, “If the goal is sovereign control over a network, then PoS is a far better design than PoW.” This distinction is crucial for understanding the different approaches nations might take in developing their own digital currencies or competing with Bitcoin.

The White House Office of Science & Technology Policy‘s interest in Lowery’s work indicates the high-level attention RPoW networks are receiving. At the time of this discussion, Bitcoin was trading at $95,937, underscoring its significant market position and potential as the global RPoW standard.

Lowery’s perspectives are not just theoretical; they are grounded in his background as an astronautical engineer and his military strategy insights. His “Softwar” thesis explores how Bitcoin’s PoW mechanism can be leveraged for national security, adding depth to his arguments about RPoW networks.

While the potential for nations to create their own RPoW networks exists, Lowery believes it would be more complex and less efficient than using PoS. The geopolitical implications of these choices are vast, with countries already beginning to integrate Bitcoin into their financial systems in various ways.

The technical details of RPoW are essential to understanding its advantages. RPoW allows the computational work performed to be reused in various applications, much like recycling computational energy, potentially leading to more efficient use of resources. This efficiency, combined with the security provided by network size, underpins Lowery’s belief in a single dominant network.

Ultimately, Lowery’s advocacy for self-custody is a call to action for individuals to keep their own Bitcoin safe and not trust anyone else to do it for them. This approach not only protects against government seizure but also aligns with the decentralized ethos that many in the crypto community champion.

Key Questions and Takeaways

What is Reusable Proof-of-Work (RPoW)?

RPoW is a system where the computational work done to secure a network can be reused for different tasks, making it more efficient.

Why does Jason Lowery believe a single RPoW network will dominate?

Lowery believes that the larger a network becomes, the more secure it is, and like TCP/IP, a single dominant network will emerge due to its efficiency and security advantages.

What is “Mutually Assured Preservation”?

It’s a concept where even nations with adversarial relations support the same RPoW network, increasing the cost of attacking it and enhancing security for all parties.

How does Lowery view the risks of centralized control over Bitcoin?

He warns that governments might use the promise of yield to lure individuals into giving up self-custody, only to seize their Bitcoin through executive orders, highlighting the importance of maintaining individual control over one’s cryptocurrency.

What are the differences between Proof of Work (PoW) and Proof of Stake (PoS) according to Lowery?

Lowery suggests that PoS is better suited for achieving centralized control over a network because it allows entities to premine tokens and implement a vote-based system, while PoW requires significant computational and energy resources.

How might nation-states attempt to create their own RPoW networks?

While possible, Lowery believes that creating a new RPoW network under sovereign control would be more complex and less efficient than using PoS, which is more conducive to centralized governance.