Blockchain Research & Development

Understand Bitcoin.
Build for Bitcoin.
Secure Bitcoin's future.

Bitcoin Sahi is a blockchain research organization. We identify fundamental problems in Bitcoin's economic architecture — and build open, data-driven solutions. No hype. No tokens. Peer-reviewed by the community. Built entirely in public.

Our First Project → Read the Research
$925
Node Cost / Yr
$0.008
Storage / Inscription
$9.2K
Externality / Yr
8×–3,000×
Fee-to-Storage Ratio
The Problem

Bitcoin's fee market prices congestion. It does not price permanence.

BIP-141 (SegWit) created a 4× weight discount for witness data. It was designed to fix transaction malleability — not to create a pricing structure for permanent data storage. The result: an unpriced externality that grows with every inscription.

Congestion Pricing

The fee market works well for its designed purpose: allocating block space among competing transactions. A higher fee gets you confirmed faster.

~10 min horizon
Works as designed
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Permanence Cost

Every inscription adds data that every full node must store forever. The miner captured the fee — but the storage cost is borne by every future node operator.

Indefinite horizon
Unpriced externality
Our First Project

Bitcoin Block Space Economics

A complete, open-source research project quantifying the gap between what the fee market prices and what node operators collectively bear. Three phases of work, all publicly documented.

Phase R1 · R2 · R3 — Complete

Does the fee market price permanence, or just congestion?

We built a UTXO cost model from public data, verified it against live blockchain APIs, published the full verification appendix, and opened the question for community discussion on r/BitcoinEngineering. The model is adjustable — anyone can plug in their own assumptions.

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Phase R1: Reading

BIP-141 analysis, covenant survey, r/BitcoinEngineering threads, bitcoin-dev discussions. Understanding the problem before proposing solutions.

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Phase R2: Cost Model

Open-source UTXO cost function with full verification. 6 node scenarios (RPi pruned at $416/yr to desktop archival at $918/yr).

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Phase R3: Problem Statement

1-page framing, LinkedIn post, Reddit discussion (28 pts, 126 comments), r/BitcoinEngineering thread. Community feedback integrated.

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Phase R4: Deployment

Live at bitcoinsahi.com. Daily research monitor fetches live fee data. GitHub Issues auto-created on anomaly detection.

Research Library

Open Source. Fully Documented. Community Reviewed.

Every number on this site is reproducible. Every assumption is documented. Every script is on GitHub.

Model

UTXO Cost Model

Python model with adjustable parameters. Run it yourself: python3 research/utxo_cost_model.py

Paper

Problem Statement

1-page framing of the open question. No solution — just the clearest possible statement of the gap.

Data

Live Data Pipeline

Daily GitHub Action fetches fees, BTC price, and model output. Data auto-commits to the repo.

Paper

Verification Appendix

Full source documentation for every parameter. Hardware costs, power draw, inscription sizes — all sourced.

Tool

Pruned Analysis

Answer: do pruned nodes avoid the externality? No — unavoidable cost is ~$2.53/yr per node.

Paper

BIP-110 Analysis

Analysis of the Reduced Data Temporary Softfork. Same diagnosis, different prescription.

View All Research on GitHub →
Our Approach

How We Work

A decade of engineering experience taught us that the best Bitcoin research starts with humility. We've been wrong twice — and we documented both failures.

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Open Source First

Every model, script, and dataset is public. No black boxes. No proprietary calculations.

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Data-Driven, Not Ideological

We publish numbers, not narratives. The data says what it says — even when it contradicts our hypothesis.

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Peer-Reviewed by the Community

We publish on r/BitcoinEngineering, engage on bitcoin-dev, and welcome critique on Reddit. The best insights come from being wrong publicly.

No Consensus Changes Without Data

We don't propose soft forks. We build the economic models that let the community decide whether a change is warranted.

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Self-Updating Research

Our models run daily via GitHub Actions. If the numbers shift, the site updates automatically.