Satoshi Scoop Weekly, 12 Jul 2024

Crypto Insights

Introducing Native Turing-Complete Capabilities to Bitcoin by Isomorphic Binding

• This talk, delivered at Ergoversary by Ergo, introduces how RGB++ protocol and the UTXO Stack as a "Bitcoin-native extension stack" brings native Turing-complete capabilities to Bitcoin Layer 1.

• This innovation, known as Isomorphic Binding, maps each Bitcoin UTXO onto Nervos' Cell model, enabling RGB++ assets to seamlessly leap across all UTXO-based chains, such as Bitcoin and Nervos CKB.

Sealing the Deal: Expanding UTXO With Single-Use-Seals

• Single-Use-Seals (SUS), first proposed by Peter Todd, ensure data remains unalterable once sealed, similar to physical seals.

• This article explores SUS’ alignment with the UTXO model and its practical applications in Nervos CKB, ensuring limited token supply and secure asset management.

Spaces Protocol: Scalable & Permissionless Bitcoin Identities

• Spaces is a permissionless naming protocol leveraging the existing Bitcoin’s infrastructure and security without requiring a new blockchain or any modifications to Bitcoin itself. It can be used as decentralized social handles for Nostr, receiving payments and other digital interactions. On-chain Spaces are represented as Bitcoin UTXOs, taking full advantage of Bitcoin's security with minimal on-chain footprint.

• Read the whitepaper.

QED: First ZK-Native Protocol

• QED is a Bitcoin scaling protocol focusing on zero-knowledge proof verification. Compatible with Bitcoin Core, it utilizes zero-knowledge proofs and Taproot scripts, bringing smart contracts to the Bitcoin.

• QED claims to achieving at least 150,000 TPS while maximizing security guarantees.

SVW: Accelerating Bitcoin's Programmability With Solana Virtual Machine

• Solana VM adopts a modular approach, decoupling the core functions of a monolithic blockchain—execution, data availability, consensus, and settlement—into different layers, allowing for specialization and optimization for each layer.

• By leveraging a modular stack, Solana's execution layer SVM integrates with the ZK verification for Bitcoin, and publishes ZK SNARKs (Succinct Non-Interactive Arguments of Knowledge) to Bitcoin using a challenge-reward mechanism, which may be BitVM or a variant based on the future OP_CAT soft fork.

L402: Internet-Native Paywalls Based in Lightning Network

• L402 is an open protocol that implements internet-native paywalls by building upon the HTTP 402 Payment Required status code and the Lightning Network, simplifying paywall implementation for any HTTP endpoint.

Bitcoin Core Published Security Disclosure Policy

• Bitcoin Core developer Antoine Poinsot posted a comprehensive security disclosure policy to address previous insufficient public disclosure of Bitcoin Core’s security-critical bugs. Vulnerabilities are categorized by severity into four classes: Low/Medium/High/Critical, detailed on the Security Advisories page.

• The recent disclosures are relevant to Bitcoin Core v0.21.0 and earlier versions. Subsequently, more vulnerabilities involving Bitcoin Core v22.0 and v23.0 will be announced in late July and August.

• The disclosures include multiple DoS vulnerabilities, remote code execution (RCE) vulnerabilities in miniUPnPc library, transaction processing errors potentially leading to censorship or improper orphan transaction management, and network splits vulnerabilities such as an integer overflow.

DappRadar 2024 Q2 Report: Despite Falling Crypto Prices, DApps Activity Soars

• In Q2 2024 the DApp industry usage increased by 40% to 10 million daily Unique Active Wallets, in comparison to the previous quarter.

• The Social sector outshines others in the Web3 industry in Q2 2024, recording a 66% surge in dUAW to 1.9 million.

• DeFi saw a 4% decrease in its TVL from the previous quarter, dropping to $168 billion.

• The NFT sector had its best quarter since Q1 2023, with a trading volume of $4 billion from 14.9 million sales.

• While the market shows overall positivity, losses to exploits and hacks totaled $430 million, up 5% from the last quarter.

Top Reads on Blockchain and Beyond

A Magical Transaction Wrapping up Bitcoin's History

• The author uncovers a series of hidden Easter eggs in this Bitcoin transaction, including a tribute to Bitcoin's developer 0xB10C, important dates in Bitcoin's history (20090103: the date of the genesis block, 20081031: the release date of the whitepaper, 19750504: the birthday reported by Satoshi Nakamoto), and 21 significant transactions – what is condensed here is not only about the Bitcoin protocol but also its history.

Image: https://mempool.space/tx/b10c0000004da5a9d1d9b4ae32e09f0b3e62d21a5cce5428d4ad714fb444eb5d

Cryptography at the Crossroads: Ethical Responsibility, the Cypherpunk Movement and Institutions

• This paper explores the intersection of cryptographic work with ethical responsibility and political activism, inspired by the Cypherpunk Manifesto and Phillip Rogaway’s analysis of the moral character of cryptography.

• It calls for a renewed commitment to developing cryptographic solutions that prioritize human rights and societal good.

Which Countries Trade Crypto the Most?

CoinWire’s report studies the cryptocurrency trading volume of 136 countries/regions using four factors: web traffic by country, supported language, headquarters location, and trading time zones. Key findings include:

• Global trading volume in 2024 is estimated to exceed $108 trillion, nearly 90% higher than in 2022.

• The United States leads with over $2 trillion in trading volume.

• Europe accounts for 37.32% of global transaction value, with Turkey and India ranking 2nd and 3rd globally.

• Binance is the most widely used crypto exchange, dominating in 100 out of 136 countries/regions.