Building the Future: Educating the Next 10k Bitcoin Developers

Briefing Notes

My 'briefing notes' summarize the content of podcast episodes; they do not reflect my own views. If you have comments about this briefing note, please leave a comment below (requires signing up for a free blog subscription). Note that some of the podcast episodes I summarize may be sponsored: don't trust, verify, if the information you are looking for is to be used for decision-making.

Summary

The August 4, 2023 episode of Built on Bitcoin explores the urgent need for more Bitcoin developers, with Lisa Neigut of Base58 highlighting the significant gap between demand for skilled developers and available talent. The discussion delves into Base58’s hands-on approach to Bitcoin developer education, the challenges developers face, and the need to diversify the industry by encouraging more women and underrepresented groups to participate.

Take-Home Messages

1. Developer Shortage: The growing Bitcoin ecosystem urgently requires more developers with specialized protocol-level skills to sustain innovation and infrastructure growth.
2. Hands-on Learning: Educational approaches that focus on practical, hands-on training are essential for preparing new developers to tackle real-world Bitcoin development challenges.
3. Diversity in Development: Encouraging participation from women and other underrepresented groups is vital to building a more innovative and inclusive Bitcoin ecosystem.
4. Opportunities in Layer 2: Developers focusing on Layer 2 solutions, like the Lightning Network, will play a critical role in the future scalability of Bitcoin.
5. Sustaining Open-Source Projects: Open-source Bitcoin projects require stable funding and developer resources to ensure continued advancements and ecosystem resilience.

Overview

In this episode, Lisa Neigut from Base58 joins host Jake from the Built on Bitcoin podcast to discuss the pressing shortage of Bitcoin developers and the ongoing efforts to close this gap. Lisa shares her own path from Web2 development into Bitcoin, emphasizing how vastly different the development process is compared to more traditional languages. She notes the need for accessible educational resources to help new developers learn core Bitcoin concepts and master the intricacies of Bitcoin’s protocol.

A key theme throughout the podcast is the need for hands-on education. Lisa explains that theoretical knowledge alone is not enough, and that practical experience is essential for developers to grasp Bitcoin’s complex systems. Base58, the educational platform she co-founded, offers courses designed to teach Bitcoin fundamentals in a practical setting, focusing on skills like byte encoding and transaction crafting. These foundational skills are crucial for anyone looking to work with Bitcoin’s protocol.

Another important discussion point is the underrepresentation of women in Bitcoin development. Lisa shares her observations on gender dynamics in tech and stresses the importance of outreach programs to attract more women to the field. BTC++ conferences, where developers can network and learn from each other, are highlighted as key events that help bring new talent into the space. Finally, the conversation touches on the opportunities presented by Layer 2 solutions, such as the Lightning Network, which offer developers exciting challenges and career paths.

Stakeholder Perspectives

• New Developers: Face substantial opportunities in Bitcoin development due to the industry’s growing demand for skilled professionals, especially in protocol-level and Layer 2 solutions.
• Educational Institutions: Have a chance to step in and provide more targeted, hands-on Bitcoin developer programs to fill the existing skills gap in the market.
• Women in Tech: There are clear pathways for greater female representation in Bitcoin development, but more initiatives are needed to encourage and support women entering the field.
• Bitcoin Companies: Must invest in developer education and support open-source projects to ensure the sustainability and scalability of Bitcoin infrastructure.
• Investors: Should look to fund educational platforms and early-stage developers to secure the long-term future of Bitcoin by ensuring a skilled and diverse developer pool.

Implications

The shortage of Bitcoin developers is a critical issue that will impact the industry’s ability to scale and innovate as adoption grows. Educational platforms like Base58 are stepping in to provide hands-on, practical training that helps close this gap, but more support from institutions, companies, and investors is needed to ensure long-term success. Additionally, encouraging diversity in Bitcoin development teams will enhance the creativity and inclusivity of the ecosystem.

For policymakers, supporting educational initiatives and ensuring that open-source projects receive adequate funding will be crucial to the successful implementation of Bitcoin technologies within broader financial systems. Industry stakeholders should prioritize developer education, and ensure that new developers have the resources, mentorship, and community support they need to thrive.

Future Outlook

The future of Bitcoin development will be shaped by the availability of skilled developers, particularly those with expertise in protocol-level work and Layer 2 solutions like the Lightning Network. Educational platforms like Base58 are poised to play a major role in meeting this demand, but industry-wide collaboration will be required to ensure there are sufficient resources to scale these efforts.

In the coming years, we are likely to see an increasing focus on creating accessible, practical Bitcoin education that allows new developers to quickly contribute to projects. Mentorship programs and community-driven events, like BTC++, will be vital in supporting the next generation of developers and ensuring the sustainability of Bitcoin’s infrastructure. Moreover, fostering diversity in the developer community will be key to unlocking innovation and driving the ecosystem forward.

Information Gaps

• How can the Bitcoin industry incentivize new developers to specialize in protocol-level Bitcoin development? Addressing this question will provide insights into how to encourage more developers to focus on the technical foundations of Bitcoin, ensuring the ecosystem remains robust.
• What initiatives could be implemented to increase the participation of women and other underrepresented groups in Bitcoin development? Understanding which strategies are most effective at closing the diversity gap could lead to a more inclusive and innovative Bitcoin development environment.
• What are the specific hands-on learning methods that best prepare developers for real-world Bitcoin development challenges? This question is critical for improving educational programs and ensuring that developers are well-equipped to handle the challenges of working in the Bitcoin ecosystem.
• How can Bitcoin-focused open-source projects secure sustainable funding, and what role should institutions and venture capital play in this process? Ensuring sustainable funding for critical open-source projects is essential to the long-term health and innovation of the Bitcoin ecosystem.
• How can Bitcoin developers stay up to date with rapid technological advancements, such as Taproot and Lightning, and what role should educational platforms and conferences play in this process? Keeping developers informed and up-to-date with the latest advancements will help maintain the growth and adaptability of the Bitcoin ecosystem.

Broader Implications

Scaling the Bitcoin Ecosystem

The shortage of Bitcoin developers and the need for more structured, hands-on education directly affect the scalability of the entire Bitcoin ecosystem. As more industries integrate Bitcoin into their operations, there will be an increased need for developers capable of working on core Bitcoin technologies, including Layer 2 solutions like the Lightning Network and Taproot. The ability to scale Bitcoin’s infrastructure will depend not only on the number of developers entering the field but also on their proficiency in solving protocol-level challenges. As institutions increasingly recognize Bitcoin’s role in global finance, the pressure to scale efficiently will grow.

Institutional Adoption and Innovation

As more institutional players, such as banks, financial technology companies, and asset managers, begin integrating Bitcoin into their operations, the importance of having a skilled developer workforce becomes paramount. Institutions rely on seamless integration and advanced security protocols to adopt Bitcoin at scale. A lack of talent could slow institutional innovation, but on the flip side, the availability of well-trained Bitcoin developers could accelerate Bitcoin's role in institutional finance, increasing confidence in its reliability as a store of value and a medium of exchange.

Decentralization and Sovereignty

One of Bitcoin’s core principles is decentralization, and the development community plays a crucial role in maintaining this ethos. A small, centralized group of developers could lead to unintentional centralization of power over Bitcoin’s direction. Expanding the developer base not only enhances innovation but also ensures that Bitcoin remains decentralized by distributing knowledge and decision-making authority across a larger, more diverse group. As governments and regulators increasingly take interest in Bitcoin, having a decentralized and diverse development community will help protect Bitcoin’s sovereignty from potential overreach.

Bitcoin’s Role in the Global Economy

As Bitcoin adoption grows across borders, the need for localized development expertise will become more critical. Developers from different regions will bring unique insights into how Bitcoin can address local economic challenges, such as remittance flows, inflation protection, and financial inclusion. Ensuring that Bitcoin development becomes a truly global effort will facilitate its broader adoption, particularly in regions where traditional financial systems are failing. A more globally diverse development community can help Bitcoin address specific regional issues, ensuring its role as a global, borderless currency.

Long-Term Economic Stability

As Bitcoin continues to be viewed as a potential hedge against inflation and financial instability, its development ecosystem will increasingly be looked at as a critical component of long-term economic stability. A well-funded, well-educated base of developers will help ensure that Bitcoin’s technological underpinnings remain secure and adaptable in the face of global economic challenges. The availability of robust, stable Bitcoin infrastructure could also play a key role in enhancing global trust in Bitcoin as a long-term asset.