Satoshi Scoop Weekly, 14 Feb 2025

Crypto Insights

Solving the Optimal Cluster Linearization Problem With DeepSeek

Stefan Richter (stefanwouldgo) found a 1989 paper through DeepSeek R1 that provides a solid solution to the problem of optimal cluster linearization. The paper presents a proven algorithm that efficiently finds the subset of transactions with the highest fees; if this subset is included in a block, it is topologically valid.

New Class in Cluster Mempool Improves Transaction Handling and Performance

The introduction of the TxGraph class in Cluster Mempool enhances transaction handling by encapsulating the transaction graph, focusing on effective fees, sizes, and dependencies. It enables batched and lazy updates for more efficient mempool operations, with improvements in transaction prioritization, incentive compatibility, and performance. This design simplifies the code by abstracting graph management, allowing for easier validation and future optimizations.

More details in this pull request.

Independent Mining Still Feasible

Two independent miners recently mined Bitcoin blocks:

• Block 881432 by 256 Foundation, a public organization promoting open-source Bitcoin mining. The group combined the hash rate from over 300 participants with the goal of breaking up the mining patent monopolies of large pools, making Bitcoin and free technology more accessible to all.

• Block 881676 by the open-source home mining hardware solo.ckpool, using hash rate equivalent to thousands of BitAxe devices.

This demonstrates that independent miners can still compete, reinforcing Bitcoin’s decentralization and censorship resistance.

6-Block Confirmation No Longer Enough, Mining Centralization Impacts Bitcoin Security

Bitcoin Core developer Luke Dashjr posted that he intended to update the 6-blocks-to-confirm target in the Knots wallet GUI. However, he found that due to Antpool controlling around 48% of the network's hash rate, more than 800 block confirmations would be required to achieve 95% security. He also noted that many pools, like Braiins and ViaBTC, are actually Antpool under different names.

Payjoin Development Progress Review

Spiral reviewed the development progress of Payjoin, which allows for including an additional input in a payment transaction to enhance privacy. The article also mentions that by using joint batching to optimize fees, Payjoin reduces transaction costs and increases network efficiency. Moreover, when both parties contribute inputs, Payjoin helps protect privacy by breaking common blockchain monitoring assumptions, making it harder for third parties to track payment amounts and private spending behaviors.

Block Size Report Reveals: Growth Partly Limited by Miner Policies and Bitcoin Core Defaults

The Block Size Report, published by Mempool research, uses data-driven analysis to examine the evolution of block size in Bitcoin from its inception to February 2025. It discusses changes in block size post-SegWit upgrade and reveals how growth has been partly limited by miner policies and Bitcoin Core defaults over the years. The report concludes with predictions about the growth of Bitcoin’s blockchain in the coming years.

Tutorial on Becoming an Advanced Nostr User With Sats Cashback

Rizful published a guide on how to become an advanced Nostr user and set up the self-owned Lightning node. After completing the tutorial, users can receive 5,000 sats via zap cashback.

Build a Smart Card for Bitcoin and Nostr Event Signing for Under $25

The 100% open-source smart card Satochip allows users to build their own signing device in just 10 minutes under 25 USD. Satochip's advantages include:

• Affordable and widely available

• Dual interface: supports both NFC (contactless) and Chip (contact) modes

• Minimal electronics, reducing the attack surface

• Enhanced security based in Secure Element

Bitcoin at the Crossroads of AI Revolution and Sovereign Evolution

CKBEcoFund shared their insights from the talk at The Satoshi Roundtable, discussing several macro issues including the dominance of artificial intelligence, Bitcoin's security, scalability, sovereignty, and national Bitcoin strategic reserves. He explored how CKB, as a Bitcoin Layer 2, is positioning itself for high-frequency micropayments, smart contracts, and cross-chain asset management.

Top Reads on Blockchain and Beyond

Pod: An Optimal-Latency, Censorship-Free, and Accountable Generalized Consensus Layer

This paper introduces a new consensus concept pod, aiming to achieve physically optimal latency for one round-trip—just one write of a new transaction and one read. This work solves inherent problems of high latency in blockchain and low scalability in traditional consensus protocols.

Grigore Rosu commented: "It can lead to the end of blockchains as we know them today. It shows how we can still achieve all the benefits of blockchains, but dropping the tyranny of sequentiality (and all the value exploiters that come with it).”

Tracking and Surveillance In-App Ads

The author learned of a massive location data breach revealing that over 2,000 apps in the App Store and Google Play were secretly collecting geographic location data without users' consent, and developers were unaware.

He then began tracking himself through location data leaked by some apps and made the following discoveries:

• Regardless of whether users choose "Allow" or "Ask not to track" in phone settings, the combination of "IP + location + user agent + geography" is still leaked to hundreds of third parties.

• The phone sends requests with location and leaked IP. These can be converted to geographic locations through reverse DNS.

• Data collection pathway: stack → o.isx.unity3d.com → molocoads → bwin

  • Unity is an SSP (supply-side platform) that collects app data via its SDK

  • Moloco Ads is a DSP network that resells data from multiple SSPs like Unity, Applovin, Chartboost

  • bwin is the advertiser that users see ads for in games

Potential DAO 2.0 Product Ideas

The author believes that the development of on-chain AI agents will lead to new forms of DAO, giving true autonomy to the "A" in DAO. New product ideas include:

• DAO 2.0 launcher: platform enables launching new community/governance tokens tied to an agent, agent responds to tokenholder votes, reads discussion forums and generates proposals

• Quality assessment for token distribution: agent assesses contribution quality to determine payouts/token distributions for DAOs/airdrops/etc.

• ZachZBT: agent monitors for hacks or other fraudulent activity and publishes research as well as tries to get funds back for people

• Due diligence agent: agent verifies contract integrity, dev reputations, on-chain behavior, and potential rug risks; allows users to interact with the agent to ask questions about risks