Company: DEFI
Filing Date: 2025-03-25
Form Type: POS AM
Source: 0001999371-25-003118
Chunk: 136

Company: Tidal Commodities Trust I
Filing Date: 2025-03-25
Form: POS AM
Chunk 136
---
 Bitcoin Network
is collectively maintained by various participants in the Bitcoin Network, which include miners, developers, and users. Miners
validate transactions and provide security to the network, and are currently compensated for that service in bitcoin. Developers
maintain and contribute updates to the Bitcoin Network’s source code, often referred to as the Bitcoin Protocol. Users access
the Bitcoin Network using open-source software. Anyone can be a user, developer, or miner.

Bitcoin is “stored” on a digital
transaction ledger commonly known as a “blockchain.” A blockchain is a distributed database that is continuously updated
and reconciled among certain users and is protected by cryptography. The bitcoin blockchain contains a complete record and history
for each bitcoin transaction.

New bitcoins are created through a process
called “mining.” Miners use specialized computer software and hardware to solve a highly complex mathematical problem
presented by the Bitcoin Protocol. The first miner to successfully solve the problem is permitted to add a block of transactions
to the bitcoin blockchain. The new block is then confirmed through acceptance by a majority of users who maintain versions of the
blockchain on their individual computers. Miners that successfully add a block to the bitcoin blockchain are automatically rewarded
with a fixed amount of bitcoin for their effort plus any transaction fees paid by transferors whose transactions are recorded in
the block. This reward system is the means by which new bitcoin enter circulation and is the mechanism by which versions of the
blockchain held by users on a decentralized network are kept in consensus.

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The Bitcoin Protocol

The Bitcoin Protocol is an open source project
with no official company or group in control, and anyone can review the underlying code. There are, however, a number of individual
developers that regularly contribute to a specific distribution of bitcoin software known as the “bitcoin core” (“Bitcoin
Core”). Developers of the Bitcoin Core loosely oversee the development of the source code. There are many other compatible
versions of the bitcoin software, but Bitcoin Core is the most widely adopted and currently provides the de facto standard for
the Bitcoin Protocol. The core developers are able to access, and can alter, the Bitcoin Network source code and, as a result,
they are responsible for quasi-official releases of updates and other changes to the Bitcoin Network’s source code.

However, because bitcoin has no central
authority, the release of updates to the Bitcoin Network’s source code by the core developers does not guarantee that the
updates will be automatically adopted by the other purchasers.