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Bitcoin Rollups Can Boost Transaction Speeds 10x, Developers Say

BlockChainGuardian Staff

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Bitcoin Rollups Can Boost Transaction Speeds 10x, Developers Say

A team of crypto developers has published a detailed plan to enable transaction rollups on Bitcoin, a common practice in cryptography that was considered impossible on the grandfather blockchain.

Rollups are a decentralized system for pooling off-chain cryptographic transactions before resolving them on-chain in more data-efficient batches, and have historically been used as a scaling solution for Ethereum. The creators of Bitcoin’s proposed structure say the rollups will provide more than increased capacity.

“They bring Turing-complete functionality to Bitcoin,” said Edan Yago, co-author of Bitcoin’s cumulative framework BitSNARK and Graal, in a message to Decrypt. Turing completeness would mean that Bitcoin can use smart contracts, thus enabling decentralized finance (DeFi) and other applications found on other blockchains.

“Initially, we would expect a scale of 10X or more that could maintain the full security of Bitcoin,” he continued. On a separate presentation Earlier this year, the developer claimed that Bitcoin rollup transactions could have infinite scalability in terms of throughput and speed – at least theoretically.

Yago is a contributor to the Bitcoin DeFi platform Sovryn (SOV), which announced the development of its Bitcoin rollup platform Bitcoin OS in January. Unlike other scaling proposals, BitcoinOS does not require soft fork or hard fork upgrades to Bitcoin Core, which evolves deliberately and can be resistant to change.

The whitepaper, published last week, presents two innovations.

One of them is called BitSNARK, a software library for checking zkSNARKS in Bitcoin. zkSNARKS are zero-knowledge cryptographic proofs of completed transactions that do not include or expose any other details.

BitSNARK is a building block of its second innovation, Grail, which is a practical and scalable implementation of BitSNARK to create a cumulative Bitcoin bridge. The Grail Bridge would allow users of the Bitcoin blockchain to move their BTC (and other assets) between layer 2 networks (rollups) in an almost trustless manner.

According to Yago, the design of Bitcoin rollups shares elements of both Ethereum’s ZK rollups and optimistic rollups.

“Bitcoin Rollups are a new beast,” he said. “They will use ZK proofs, but verify them through a challenge/response sequence, similar in some ways to optimistic rollups.”

Moving BTC through BitcoinOS still requires intermediary agents called “operators” to assist in processing bridge deposits and withdrawals. These traders are able to monitor the activity of their fellow traders at all times, preventing any of them from stealing coins from users or processing any type of dishonest bridge transaction.

“As long as a single trader remains honest, the system maintains its integrity,” said Yago.

Yago states that there is also “no theoretical limit to the number of participants” in the pool of decentralized operators. New traders can join and old members can leave by following specific steps. Sovryn says he is working to create a bridge that works efficiently with more than 100 operators.

The proposed rollup system is an outgrowth of Robin Linus’ revolutionary BitVM framework, which introduced the ability to compute anything into Bitcoin last year.

Unlike BitVM, BitSNARK was developed specifically for SNARK verification, the group says, overcoming the practical limitations and inefficiencies of its predecessor in supporting a Bitcoin rollup bridge.

“It offers an order of magnitude improvement in program size and up to a 50% reduction in challenge/response protocol length for the type of computation required by bridges,” the whitepaper states.

Implementing the Grail bridge also solves a problem significant limitation of BitVM bridges called earlier this month. Crypto developer Tyler Whittle claimed that users of such bridges could lose all their funds if bridge operators were forced to process a massive withdrawal that exceeded their available liquidity.

“Grail offers users consistent withdrawal capability,” the white paper says. “The application of a fee market for priority withdrawals, coupled with the ability to scale operators through dynamic opt-in, allows for the smooth and continuous operation of withdrawals.”

Once functional, Yago said Sovryn’s BitcoinOS could render rival L2s and sidechains – such as Liquid, Rootstock and Stacks– “completely obsolete”. While sidechains don’t have the direct security of the Bitcoin network or the decentralized peg of Bitcoin, rollups have both, making them a huge improvement.

In fact, Yago said, the bridge could be so decentralized that no one could compromise it if they tried – not even the government.

“The system is completely designed to defeat attackers at the state level,” Yago said. “A single honest programmer in his basement can successfully defeat a coalition of nation states.”

Edited by Ryan Ozawa.



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Bitcoin

‘This is huge’ — Billionaire Mark Cuban issues ‘incredible’ Bitcoin and crypto prediction amid price slump

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'This is huge' — Billionaire Mark Cuban issues 'incredible' Bitcoin and crypto prediction amid price slump

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Bitcoin
came back with a vengeance this year when former President Donald Trump Cryptocurrency boosts US presidential election in November with ‘revolutionary’ plan.

Subscribe now to Forbes CryptoAsset and Blockchain Consultant and “discover blockchain blockbusters poised to generate 1,000%+ gains” after the bitcoin halving earthquake!

The price of bitcoin has surged to more than its all-time high in recent months, surpassing $70,000 per bitcoin and triggering a wave of mega-optimistic predictions about the price of bitcointhough it fell again this week, falling below $65,000 after the Federal Reserve kept interest rates steady.

Now, as Elon Musk suddenly breaks his silence on bitcoin and cryptocurrenciesBillionaire investor Mark Cuban called a California plan to digitize 42 million car titles using blockchain an “incredible step forward” and “huge” for cryptocurrencies.

Sign up for free CryptoCodex nowA daily five-minute newsletter for traders, investors, and crypto curious people that will keep you up to date and ahead of the bitcoin and crypto bull market

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Mark Cuban, famous Shark Tank investor and billionaire owner of the NBA team Dallas Mavericks, has… [+] called a cryptocurrency update “amazing” amid bitcoin’s price slump.

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The California Department of Motor Vehicles (DMV) has digitized 42 million car titles using blockchain, it was reported by Reuters, through technology company Oxhead Alpha on the Avalanche blockchain and designed to detect fraud and facilitate the securities transfer process.

“This is an incredible development for crypto,” Cuban, best known as an investor on TV’s Shark Tank and owner of the Dallas Mavericks NBA team, posted on X, joking that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler could sue the state as part of his hostility toward cryptocurrencies and blockchain technology.

“The reason this is huge for crypto is because people who hold the tokens will have an app with an Avalanche wallet,” Cuban said. “Tens of millions of Californians having and using a crypto wallet in the next five years, or however long it takes, normalizes the use of wallets and crypto.”

John Wu, president of Avalanche developer Ava Labs, told Reuters that California’s DMV is “creating a wallet that you can download on your phone.”

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ForbesCryptocurrencies Are Suddenly Bracing For A ‘Very Major’ U-Turn In China After Wild Price Swings For Bitcoin, Ethereum, XRPBy Billy Bambrough

Bitcoin’s price has rallied this year, triggering a wave of bullish bitcoin price predictions from… [+] people like billionaire Mark Cuban.

Forbes Digital Assets

Last month, Cuban predicted that if the US dollar falls as the global reserve currency, bitcoin could become “a global ‘safe haven’” and a “global currency.” potentially sending the price of bitcoin to a much higher level.

According to Cuban, bitcoin could become what its most ardent supporters “envision” — a means “of protecting our economies… This is already happening in countries facing hyperinflation.”

The price of bitcoin has skyrocketed over the past year, largely due to the world’s largest asset manager, BlackRock, leading a bitcoin attack on Wall Street.

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MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

BlockChainGuardian Staff

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MicroStrategy’s Cash Flow Amid Bitcoin Rally Raises Some Eyebrows

Analysts are starting to pay more attention than usual to Bitcoin-proxy’s underlying enterprise software business MicroStrategy Inc.

How to better invest cash generated from operations is what originally prompted co-founder and CEO Michael Saylor to turn to Bitcoin four years ago. Since then, the Tysons Corner, Va.-based company has adopted a two-pronged strategy of investing in the cryptocurrency instead of traditional assets like short-term Treasuries and ramping up its software operations.

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Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

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Large Bitcoin (BTC) Holders Added $5.4 Billion Worth of BTC in July, Data Shows

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CoinDesk is a awarded media outlet that covers the cryptocurrency industry. Its journalists follow a strict set of editorial policies. In November 2023, CoinDesk has been acquired by the Bullish group, owner of Optimistica regulated digital asset exchange. The Bullish Group is majority owned by Block.one; both companies have interests CoinDesk has a portfolio of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial board to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

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Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

BlockChainGuardian Staff

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Bitcoin (BTC) Hits Six-Week High After Trump’s Pro-Crypto Speech

Bitcoin has retreated from a six-week high as investors shift their focus to speculation the U.S. may sell seized tokens just days after Donald Trump vowed to create a government stockpile of the cryptocurrency if he is elected president again.

The US transferred $2 billion worth of Bitcoin to a new digital wallet address on Monday, blockchain research firm Arkham said in a publish on social media platform X. Market analysis firms have speculated that the tokens are from the Silk Road marketplace, where customers used virtual currencies to buy illegal drugs and hacking tools before it was shut down.

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