How Can BTC Be Used to Secure PoS Chains?
How to Win in Crypto | Bitcoin & Gold | Crypto Adoption | Euler Exploit Contagion | Blockchain Operating Systems
GM Intels, this is your Daily Bolt briefing.
Today's briefing includes intelligence on Bitcoin's strategic value as a secure store of value, but also its potential for sharing it’s security with proof of stake chains.
Additionally, our agency recommends reviewing our latest intelligence report on Gains Network, available for our premium members for further analysis.
Over and out.
Key Discussions Happening Today
1/ Bankless - Coinbase CEO on How to Win in Crypto
Preview: In this episode of Bankless, Ryan Adams and David Hoffman are joined by Brian Armstrong to discuss his reflections on 2022, his outlook on crypto moving forward, and more! Click here to listen to the full episode.
Length: 93 mins | OUR NOTE: 8 mins
Brian had to educate people about the good actors in the industry and hopes negative memories will fade.
Coinbase may have grown too quickly, and the culture was strained by too many new hires.
Decentralizing more of Coinbase over time and building trust in the industry by being regulated like exchanges and custodians.
The US has increased scrutiny and hostility towards the crypto industry, with "choke point" operations to choke out the banking sector.
2/ Blockbytes - Across the Chains Ep. 25
Preview: In this episode, Clay Kilgo is joined by Souvlaki, Nick Drakon, Mark Jeffrey and Buns to talk about Bitcoin, gold, Arbitrum, Optimism, macro and more. Click here to listen to the full episode.
Length: 83 mins | OUR NOTE: 6 min
Here are some key takeaways:
If the U.S. goes to war or Janet Yellen does something stupid, USD can become ugly to some people: Bitcoin doesn’t have the baggage of a country.
From a developer perspective, Ethereum and EVM are more interesting because they provide a complete development environment to have this distributed computing environment.
Bitcoin doesn’t have a programming environment yet to provide a more positive outlook.
3/ Real Vision - Is This the Moment Crypto Has Been Waiting For?
Preview: Ash Bennington together with David Nage, portfolio manager at Arca, and Dan Roberts, the editor-in-chief of Decrypt answers the question: If crypto can rally in the face of a meltdown in the traditional banking system, is this the start of a broader movement towards crypto adoption? Click here to listen to the full episode.
Length: 48 mins | OUR NOTE: 6 mins
Here are some key takeaways:
David doesn't know if people are celebrating, or if they are seeing the first honest thoughts that they had about digital assets, about Bitcoin, come to fruition.
Americans understand the difference between insured and uninsured deposits.
It is extremely ironic that crypto would rally on news of government intervention in a banking crisis.
4/ Alluo Twitter Space – Alluo Governance - 20th March to 2nd April
Preview: In this Twitter Space, host 0x_preacher is joined by 0xeceth, Co-founder of Alluo, to discuss Alluo Governance between 20th March - 2nd April. Click here to listen to the full episode.
Length: 36 mins | OUR NOTE: 3 min
Here are some key takeaways:
Euler Finance was hacked on Monday, and some of the collateral backing $agEuro was impacted.
The proposal for Euros is to do nothing as the Euro pools are linked to $agEuro, but people can recommend strategies on the Alluo Discord server.
There is a search for other pools, but many are paired with a non-Euro asset, which makes it a high-risk play due to the volatility of the Euro versus the dollar.
5/ Chjango Unchained - Blockchain Operating Systems and Near Protocol
Preview: In this episode, Chjango Unchained invites Illia to discuss the latest developments on Near protocol with a focus on Blockchain Operating Systems. Click here to listen to the full episode.
Length: 28 mins | OUR NOTE: 4 min
Here are some key takeaways:
Near Protocol started as a scalability solution to address the challenges of bringing blockchain technology to a wider audience.
Near accounts are named accounts, which help to simplify the user experience, and the cryptography is hidden from the user.
By providing a simplified and streamlined experience for interacting with decentralized applications, an operating system for blockchains can make it easier for consumers to use dApps and access blockchain-based services.
On the Revelo Intel platform, we’ve summarized these 5 episodes and in total, would have saved you: 4 hours and 21 minutes!
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Note of the Day
Bell Curve - How Bitcoin Will Secure The AppChain Future
In this episode of Bell Curve, Mike, and Myles are joined by David Tse, Javed Khan, and Aidan Salzmann to discuss how AppChains require sovereignty, interoperability and security; Cosmos has solved sovereignty and interoperability, but security is still a moving target.
Read our notes below to learn more.
Aiden and Stride app chain
Aiden is working on an app chain called Stride, which provides liquid staking for Cosmos.
Stride started as a sovereign app chain with an independent validator set and plans to transition to the Cosmos Hub consumer chain.
Javed David and Rollkit
Javed David is working at Celestia on the execution environments team and made it possible for Rollkit to use Bitcoin as a dealer.
Rollkit is a modular framework for building roll-ups, which are a type of scaling solution for blockchain networks.
Babylon project and Bitcoin security
David, a professor at Stanford, started Babylon to bring Bitcoin security to the app chain world.
Babylon helps proof of stake chains inherit some of the security properties of Bitcoin.
Babylon uses a time stamping technology to add Bitcoin security to every block of every app chain.
Babylon's goal is to offer both long-range security (Bitcoin's security) and short-range security (proof-of-stake) to create a secure ecosystem for high-value transactions.
Babylon's design goal is to minimize the footprint on the Bitcoin chain while still extracting significant security.
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Rollkit and Bitcoin Sovereign roll-up
The Bitcoin Sovereign roll-up is a demonstration of how Rollkit can be integrated with different data availability layers, including Bitcoin, for increased scalability.
The integration of RollKit with Bitcoin was a research project to understand its feasibility and minimize the bloat on the chain.
RollKit's modular framework allows for flexibility in choosing data availability layers and switching between them easily.
Shared security solutions and horizontal scaling
Horizontal scaling (interchain) is becoming the preferred method of scaling blockchains.
Shared security solutions exist for Ethereum (roll-ups, Eigenlayer), Cosmos (interchange security, opt-in security, Alliance, Mesh), and Bitcoin (Babylon, Rollkit).
A good chain for shared security is highly decentralized and has a low volatility crypto asset with a high market cap.
Bitcoin and exporting block space
Bitcoin provides trust and needs more demand for block space and transaction fees, while Cosmos chains have sovereignty and interoperability but less security.
Exporting Bitcoin's block space can provide value to other chains without changing Bitcoin's properties.
Staking Bitcoin is a possibility that is being explored, similar to Ethereum's restaking.
Transactions originating from separate chains can be written to the Bitcoin blockchain, creating demand for block space and saving security budget.
Solving security and interoperability challenges
Cosmos is working on solving the security piece while Ethereum is undergoing Cosmosification, and now they are seeing the value of sovereignty, which will drive the creation of app-specific roll-ups.
Cosmos needs to attract users to its products, and there could be a partnership between the Bitcoin and Cosmos communities since there is a larger overlap than initially thought.
Interoperability standards are needed to connect different ecosystems and allow every application to be able to talk to each other and let the product define what the stack looks like and what the security model looks like.
Strategic decision-making for product development
The strategic rationale behind picking the stack, the security model, and making trade-offs is to solve core objectives for the product and let the stack be whatever makes the best version of that product.
Stride is presented as an example of a project that has thought strategically about its roadmap.
It is important to improve the product at each stage of development and match assets with liabilities.
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