Satoshi Scoop Weekly, 31 May 2024

Satoshi Scoop Weekly, 31 May 2024

Take a byte out of the latest weekly updates in the Bitcoin ecosystem. All things #POW and #UTXO.


4 min read

Crypto Insights

OP_CAT: Valuable Yet Not the Optimal Next Step for Bitcoin Alone

  • The article debunks misconceptions about OP_CAT, suggesting that it should be used for what it's good for, e.g., the equivalent of OP_CHECKSEPARATESIG, checking Merkle inclusion proofs, and combining data for signature verification with OP_CHECKSIGFROMSTACK.

  • It addresses miner extractable value (MEV) concerns and potential centralization risks in constructs like hash rate escrows.

Why There’s No ZK in Bitcoin

  • Bitcoin faces challenges, but changing Bitcoin remains hard (and that is good).

  • SNARKs offer potential solutions. Plausible approaches to integrating SNARKs into Bitcoin include BitVM and re-enabling opcodes, both requiring further development and community consensus.

  • The slides are available here and the video can be found on Youtube.

3-Layer Structure of Web5 by Binding Nostr and CKB

  • This proposal introduces a protocol binding Nostr's simplistic basic data structure to the programmable Common Knowledge Base (CKB) blockchain, enabling Nostr native data to inherit UTXO/Cell features on CKB and offering new on-chain opportunities.

  • A new development paradigm for dApps is also introduced, integrating off-chain and on-chain data into a single consistent system, contrasting with Ethereum's dual-system approach.

  • It outlines the 3-layer structure for Web5 as below:

Defending Bitcoin Rights: The Digital Second Amendment

  • The initiative led by the Satoshi Action Fund seeks to protect commercial crypto-mining from local regulations, likening the proposed "Right to Mine" bills to the Second Amendment, both seeking to limit government interference and safeguard individual rights.

Most Self-Claimed Bitcoin Layer 2 Solutions Are Centralized Sidechains?

  • Many projects claiming to be Bitcoin Layer 2 solutions rely on centralized sidechains for performance and have introduced trust assumptions.

  • While some projects are honest about their centralized approach, many misrepresent their designs as resembling modular constructions seen in other ecosystems like Ethereum.

Analysis of Replacement Cycling Attacks Risks on L2s Beyond LN

  • Detailed exploration of non-lightning Bitcoin use cases susceptible to replacement cycling attacks, primarily from a denial-of-service perspective, sheds light on the vulnerability within various Bitcoin applications and protocols.

Bitcoin Optech #304: Upgrading LN Channels Without Closing & Reopening

  • A summary and analysis of existing proposals for upgrading existing LN channels to support new features, including changing parameters, updating commitments, and replacing funding.

  • The author suggests initiating work on parameter and commitment upgrades using dynamic commitments, regardless of the chosen approach for upgrading to taproot channels. This strategy enables the transition to option_zero_fee_htlc_tx anchor channels and establishes a commitment format upgrade mechanism for future V3 channels.

We Are in the Cycle of Culture Where Meme Coins Lead

  • Crypto's attention economy is driven by meme coins, which act as an affordable social lottery system.

  • "No fundamental" is not a bug, but a feature.

Top Reads on Blockchain and Beyond

OP_CAT & Bitcoin Ossification With Blockstream’s Andrew Poelstra

  • Discuss between Shinobi and Andrew Poelstra on Rusty Russell's Bitcoin script restoration project.

  • Introduction of a new opcode costing model to reflect the true cost of script execution by assigning different costs to opcodes based on their computational requirements.

  • Addressing the challenge of building consensus within the Bitcoin developer community regarding the need for changes like Rusty's proposal, despite concerns about Bitcoin ossification and resistance to protocol changes.

How To Prepare My Phone for a Protest? (Updated 2024)

  • Before joining a demonstration, consider privacy risks such as location tracking and unencrypted communication interception (e.g., SMS).

  • Safeguard privacy by using encrypted messaging apps, disabling location tracking, and using passcode instead of biometric authentication. See the full cheat sheet for more details.

Blazing the Trails: Improving LND Pathfinding Reliability

  • Introduction of a bimodal model, an alternative estimator, to improve predictability and flexibility of pathfinding in Lightning Network Daemon (LND).

  • This distribution-based model employs a rigorous mathematical approach to estimate probabilities, providing greater freedom for node operators to optimize pathfinding.

  • Vision for the Lightning Network’s enhancement of payment success through a market process between economically rational routing nodes and pathfinders buying the offered liquidity.