0:00 I've given this talk many times, but it's still underappreciated for what it is. 0:05 So, this is a very big idea, actually, in Bitcoin, that we want to collect every transaction fee on Earth, 0:12 and we want Bitcoin to be able to do everything that any other blockchain can do. 0:17 And this is my idea of BIP300. 0:19 My background is that I have a blog where I've written like a thousand pages about Bitcoin. 0:25 And before that, I was a statistician at Yale University Economics Department. 0:31 In December 2014, I added back a link to my blog, and that was sort of my big break, so to speak. 0:39 And this is basically the idea of what I'm trying to talk about here today, 0:42 is that what you should do is try out the software that we have already built, 0:46 because the software already exists. 0:49 You go to LayerTwoLabs.com slash download. 0:52 And then if you're interested in the software, if you like it, 0:55 you can consume some more content at drivechain.info, which is the project site. 1:01 There's tons of information there. 1:03 And then if you agree, you want 51% of hash rate to run the activated client. 1:07 So that's the idea. 1:09 And then I have some screenshots here just to give you an idea that this is real software that already exists. 1:14 This is not like some stupid PowerPoint slide where people put BitVM on it or whatever, 1:19 and then they explain that something will be built later. 1:21 This is real, and you can download it now with those test fake coins, testnet network. 1:28 So this is like, if you go to LayerTwoLabs.com slash download, you see something like this. 1:33 This is what the software looks like. 1:35 You run Bitcoin at the top, and then you run these other L2s beneath. 1:41 And this is what drivechain.info looks like, and there's an enormous amount of content here on the sidebar. 1:46 If you visit it on mobile, it's at the bottom. 1:48 So basically, let's get this. 1:52 It's very easy to run this idea, but even though it's very, very easy to run, it has extremely profound implications, 1:58 which I'm going to explain now. 2:00 So I have some endorsements, though, just to give a small idea that this isn't completely made-up nonsense, 2:05 which is that I have Adam Back, who said this on stage in front of everyone in Baltic Honey Badger in 2022. 2:12 He said Drivechains are pretty cool and arguably could have been more important or useful than Taproot, 2:17 which was the most recent Bitcoin software upgrade. 2:22 Yeah, John, the creator of Nostra, said we need Drivechain or the work of thousands in the last 13 years of being vain. 2:27 Drivechain is our only hope, so he's an even bigger shill than I am in a way. 2:31 Rene Picard, author of Mastering Lightning, the book. 2:35 He's also got this endorsement. 2:36 And then Robin Linus, inventor of BitVM, he's also a huge supporter. 2:40 According to Rob, he's going to be here later at 3, and he's a genius, so I'm going to be on a panel with him. 2:45 You should check that out. It's going to be very interesting, I'm sure. 2:49 So, OK, so what is this idea, though? 2:52 The idea is that everything will be on top of Bitcoin, and so right now we have all these things that have their own coin. 2:57 For example, maybe Zcash or Ethereum or whatever, but even things like Visa or WeChat Pay. 3:03 So there's all these computer networks out there that are doing these transactions, and we want them all to be on top of Bitcoin. 3:09 And so we won't need the altcoins or the fiat currencies. 3:14 That's the idea. 3:15 Of course, it's easier said than done, but another way of putting it is that the Bitcoin network today is like a phone, an old rotary phone. 3:25 And it will still be like a phone, but it will do all this other stuff. 3:29 These things that the Bitcoin network doesn't today do or can't or is not willing to do. 3:33 Or there's some kind of controversy over what to do, such as the block size dispute. 3:38 The blocks cannot be large and small at the same time. 3:41 The blocks cannot have Zcash-level privacy and be auditable at the same time. 3:47 So there's disagreements. 3:50 So basically, we're going to use the altcoin tech or just the ability to release any new piece of software. 3:56 But there's not going to be an altcoin. 3:59 There's only going to be BTC. 4:00 So the altcoin will start. 4:01 Instead of having an altcoin like Ethereum, you'll have this thing that you could call BitEthereum or you could call it whatever you like. 4:07 But it will be Ethereum, but it will have no coin. 4:10 It will start with zero coins. 4:12 There will be no coins on it until you send coins to that from Bitcoin L1. 4:17 And so basically, the goal is you have some person who says, 4:22 Oh, Bitcoin seems great, but can it do a long list of things? 4:27 Smart contracts, DeFi, whatever. 4:29 And instead of explaining to them maybe why we don't want to do that or whatever, 4:33 we just say yes because it can do everything. 4:36 And a fringe idea, you just say, well, yeah, you go and do that in your own L2, far away from the base layer. 4:47 And so now anyone can do whatever they want on their own L2. 4:50 And in that way, we have a good fences make good neighbors type situation. 4:58 So yeah, it's kind of like lightning where you move the coins to the app. 5:04 So there's no coins when it first starts. 5:06 But when they're on there, they can do whatever they want and then they come back. 5:10 So you get unlimited planetary scale from this and you immediately get Zcash level privacy. 5:16 You just copy the Zcash altcoin software. 5:18 And again, all this software already exists. 5:20 You can download it for yourself at LayerTwoLabs.com slash downloads. 5:24 You can try it for yourself. 5:27 The L1 is just going to ignore these L2s. 5:30 The only thing that comes back is a periodic message about what is being withdrawn. 5:36 So whatever happens on these L2s, L1 will ignore it. 5:39 And that is the key because that is why the people on the L2 are allowed to do whatever they want. 5:47 So it's because that they cannot screw up L1 from L2 that they are allowed to do whatever, 5:51 Ethereum smart contracts or very large block sizes or any other thing, ring signatures, whatever Monero would be. 6:00 I have a tiny description of how this works, but I'm not sure if it will make any sense. 6:04 But this is the L1. Base layer is beneath and it has these block headers and these different blocks. 6:11 And then I have this thing. This would be BitMonero. 6:13 So this is a version of Monero that has no XMR. There's no altcoin. 6:18 And it has its own blocks and this is going from December to April. 6:23 And so basically, as I was trying to say, on L1 with BIP300, you do not actually see what's happening in here. 6:32 There's this big sheet covering all of this. 6:34 All of this activity, including the deposits and withdrawals and everything in between, is compressed into this one hash. 6:42 And that hash is the only thing inserted on L1. 6:45 So what your Layer 1 node, full node, Bitcoin core node sees is just this. 6:50 They see this little green thing go in and then they see it get paid out. 6:55 And they ignore everything that happened in between. 6:58 Which is how the whole system overall can do whatever it likes because no one is responsible for it. 7:09 This is an example of the software doing this. 7:12 You can see how this happened if you download the software. 7:15 So yeah, more relevant to miners, because I know this is put on by Marathon. 7:18 They invited me to come over and bring this up. 7:21 Miners have the ability to collect, I mean the goal would be to collect every single transaction fee on earth. 7:26 Which is that every single transaction in the world, be it a Bitcoin transaction, they all go... 7:31 Even though they happen on L2, they're all automatically piped down to L1 through something called merged mining. 7:37 That was invented by Satoshi in 2010. 7:41 And it's been in use continuously ever since. 7:43 In fact, we have merged mined Namecoin ever since 2010. 7:47 Although the amount of money is very small. 7:50 But my expectation is that in the future, well over 99% of all miner revenues will come from merged mining these chains. 8:02 So yeah, this is the idea. 8:05 BIP300 is what allows these transactions on different networks that may have different features or different block sizes. 8:14 This is what allows them to be Bitcoin transactions. 8:16 And then BIP301 is this form of merged mining that pools all of the transaction fees down to the L1 miners. 8:26 So anyone can read about this. 8:29 If you look in the BIPs repository, you can read the actual BIPs. 8:34 I have kind of maybe a visual explanation of like... 8:37 Right now we have... 8:39 This is like cryptofees.info, the website. 8:43 We have all these different chains. 8:45 But after BIP300, it's all just Bitcoin. Everything is Bitcoin. 8:49 Even though there's different networks and there's different pieces of software. 8:53 Different versions of the Bitcoin network. 8:55 And then all the fees are pooled to the L1 miners. 9:00 So this is... 9:02 BIP300 is just... 9:03 You drop... 9:04 You forget about all of Ethereum. 9:06 And now you have BitEthereum. 9:09 And then in BIP301, it just automatically takes all the L2 fees and pools them into a single L1 accounting transaction. 9:17 L1 accounting transaction that gives all that money to the L1 Bitcoin miners. 9:23 And we don't just have to copy the existing altcoins. 9:27 We can copy anything. 9:29 Even Venmo or Visa or whatever. 9:32 And I did some back of the envelope math to try to figure out exactly how many transactions there are per year. 9:37 But it's very difficult. 9:38 But I think it's at least in the trillions. 9:41 I think it could be many more. 9:43 And that would add up to... 9:45 10 cents of each of that would be hundreds of billions of dollars per year. 9:50 And actually the number grows maybe 7 or 8 percent. 9:53 It means it doubles every 9 or 10 years. 9:56 So that would be an enormous amount of money for the miners. 10:01 One of the altcoins I think we should copy that we have already copied. 10:04 And you can try out this software yourself if you ever download it. 10:08 Is that we have a fork of the latest version of Zcash. 10:11 But with no altcoin. 10:13 But it has the reusable Z address. 10:16 So you have Zk-SNARK privacy for Bitcoin. 10:19 This is vastly superior to CoinJoin in every way. 10:22 It's hard to even begin to list the reasons. 10:25 But some are that the more people using this, the more people you are in the anonymity set. 10:30 And it's just more user friendly since you only have one address that you can reuse. 10:37 So this is a good idea to copy like this. 10:40 Monero has taken over the darknet markets. 10:44 Some of them. 10:45 So we could recapture that use case with this idea. 10:51 Namecoin is a totally underappreciated idea. 10:54 Although many people have started to work on it again. 10:57 Where the Ethereum people have ENS or whatever it's called. 11:01 And the Stacks people, they have their new BTC thing. 11:05 But of course to use the Stacks thing you need the STX token. 11:08 And with this, this is just Bitcoin. 11:10 100 percent Bitcoin only. 11:12 So I think that this idea is a very good idea. 11:15 And I have written a long post. 11:17 Here it is. 11:18 I changed some bitnames. 11:19 Logins. 11:20 DNX. 11:21 Kagan. 11:22 ICANN. 11:23 If you search for this post, you can read through it. 11:25 And why I think that this is a very, very good idea. 11:27 It's really a shame that it was invented in 2010 by Satoshi himself. 11:32 Co-invented kind of. 11:34 I actually think I have it. 11:36 Yeah. 11:37 Looks like I have it somewhere. 11:38 There's some nice stuff around. 11:40 Okay. 11:41 I have a slide where Satoshi brings up. 11:43 He's co-inventing it. 11:44 Everyone should read it. 11:45 It's called BitDNS and Generalizing Bitcoin. 11:48 Where Satoshi invents this idea. 11:50 But no one has done anything with it. 11:54 Yeah. 11:55 Most of the assets, with the exception of the Ordinal's activity, which is recent. 11:58 More of the assets has been on other chains or even stuff like Tron or whatever. 12:03 But we should just recapture all that for Bitcoin only. 12:06 We want Bitcoin to be the king. 12:08 And we want everyone who wants to use. 12:10 Anyone who has any use case at all. 12:12 We want them to be a Bitcoiner. 12:14 So, yeah. 12:15 Yeah. 12:16 I'm very interested in this prediction markets topic. 12:18 It's been getting a lot more attention with Polymarket. 12:20 I actually made a Bitcoin prediction market. 12:22 L2 sidechain back in the year 2013, 2014, 2015. 12:30 Which is on my site at bitcoinhivemind.com. 12:32 So check that out if you are interested. 12:35 But I think this is very important. 12:36 So these are all things that we could do with this BIP300 idea. 12:40 And I'm trying to speed through this. 12:43 Oh, yeah. 12:44 These are just screenshots. 12:45 Well, I would like to have some questions if there's any. 12:47 Yeah. 12:48 Hey. 12:49 So would you like 30 minutes or whatever I think they said here? 12:51 Yeah. 12:52 You can just go and whatever. 12:53 Yeah. 12:54 I have tons of slides. 12:55 So I got more. 12:56 Even more. 12:57 We could even keep loading more and more slides if we want to do that. 12:58 And so on and on. 12:59 This part is not really that important though. 13:01 Because the whole point is you can just do anything you want. 13:03 So the fact that other people are doing cool things is just kind of, it's not actually that important. 13:07 Yeah. 13:08 But there is an interesting thing that the only sustainable way to ossify L1 is actually if people can get what they want on some L2. 13:16 So even the people who want ossification I think should support this idea. 13:21 Because it's just a very bad idea to try to just tell people that the software is not going to change even if it doesn't meet their needs. 13:30 Because that will encourage them to leave and use other software. 13:34 So then how ossified will Bitcoin be if it is abandoned by most people? 13:39 I do see it as a kind of race to some extent. 13:41 Try to get to 8 billion people, 8 billion users or die. 13:46 Because if someone else gets to 8 billion users then I don't think there's much room for a second place coin. 13:54 Yeah, I have read some slides about like how is this possible that this can work. 14:00 But I don't know if people are interested. 14:03 What I think it is best, I will go back. 14:06 I think it is best if people download the software themselves and they can try it out and see that it's real. 14:12 Go to the site. 14:14 But yeah, I did actually try to sprint through it in 15 minutes because I was wondering if there would be any questions from anyone. 14:21 So if anyone has a question, feel free to ask. 14:25 I'll start with you. 14:26 Yes. 14:27 What is the resistance to Bitcoin? 14:31 Where do you find valid about their arguments and where do you find they don't get it? 14:39 I think the one weird thing that I did not expect is that... 14:45 So a lot of the other ideas I think are actually quite bad. 14:48 The Lightning Network in particular as we have all been suffering under this idea for so long. 14:53 And everyone is so committed to it that they cannot give up on it. 14:56 So I think this has forced everyone to reject any kind of rival idea until very recently. 15:02 Only recently has it become socially acceptable to like doubt that the Lightning Network will work. 15:10 There are arguments against this but they don't really make any sense. 15:13 So actually one of them was the slide that I was going to say at the end. 15:16 So some people think what's going on here is this is kind of cheating in a way. 15:21 Where I am pushing this. 15:24 What does it cost to run the full node of Bitcoin Core? 15:26 And then there's all these other L2s which can be an unlimited cost. 15:30 But the thing is those are all optional. 15:32 So you only run those if you're interested in doing that. 15:35 So in a block size war, you know, people like Roger Ver or the other large blockers. 15:40 They wanted to run software that processed larger blocks but other people did not. 15:45 And in this idea, not everyone has to do the same thing. 15:49 So people can just run whatever they want. 15:52 And so in a way I'm kind of pushing the problem only on the people who want to run it. 15:59 And this is very counterintuitive because people just think either nothing is happening at all. 16:04 Or that people are being forced to do something that they don't want to do. 16:08 But neither of those things are true. 16:10 This is just people being confused. 16:11 And I think if they run the software, they will figure out what is actually happening. 16:16 A weird thing is that some people do critique. 16:19 This critique makes no sense and it is almost a waste of time to repeat it. 16:22 But there is a critique from very smart people who they think that for some reason 16:29 the fact that the miners can make a lot of money doing this is bad. 16:33 And they think it will pressure the miners into like running this software. 16:38 That really doesn't make any sense because the software is free, open source software. 16:42 And if the miners don't want to run it, they can just stop running it at any time. 16:47 And the miners already live in this extremely competitive world 16:51 where they must do a whole list of things just to be economically viable. 16:57 So there is really nothing different about this than anything like using the waste heat to... 17:02 If you are a miner and you use waste heat to dry fruit or something or heat a swimming pool, 17:07 this is a very similar thing where you are just running Bitcoin Core 17:09 and then you also run more software that prints money for you, collects transaction fees. 17:16 So I think people just don't understand this idea. 17:19 One other thing that happened was that Blockstream went public with the sidechain word, 17:24 but they used it to describe a multisig federation controlled by them 17:28 where they collect all the transaction fees for themselves. 17:31 And as a result, I think everyone is very confused about what the word sidechain originally meant 17:36 and so it created a lot of confusion overall, unfortunately. 17:41 Any more questions? 17:42 Yeah, if anyone has a question, please ask a question. 17:44 I rushed through the thing so that there would be some time, I think. 17:48 No, you don't have a question? 17:51 Yeah, this is a bizarre thing. 17:52 But yeah, again, I have a list of endorsements at LayerTwoLabs.com also. 17:55 And I had those three at the beginning to try to get people like, 17:58 this is actually not a completely made up thing. 18:01 This is very real. 18:03 Question for you. 18:04 Yes. 18:05 So I'm still struggling to understand this a little bit, 18:08 but just hypothetically, let's say one of these sidechains becomes massively successful 18:14 and it's super huge and everybody is using it in different ways. 18:19 Maybe you could describe how you would implement it against a Bitcoin sidechain. 18:25 No, I don't think so at all. 18:26 The question was, what if a sidechain becomes very, very popular? 18:29 Much more so than the L1. 18:31 First of all, I think the analogous case would be, 18:35 what if some kind of altcoin becomes much more popular than BTC? 18:39 I think that would be very threatening to Bitcoin's store of value 18:43 because everyone would be around using this other thing 18:45 and that may also have fixed supply or something that's close enough 18:49 where a lot of people don't care. 18:50 So maybe that new thing would have, 18:52 we would actually be getting nervous, I think, in that case 18:57 because I do think there's only room for one project. 18:59 But the way this project is designed, 19:02 there is nothing that the L2 can do that will change what is happening on L1. 19:08 So maybe things may happen with how things are perceived by humans 19:12 and certainly what would happen would be 19:14 the miners' attention and loyalty, 19:18 it would be divided somewhat proportionally. 19:21 They would say, well, this is really our bread and butter over here. 19:24 However, even though in a relative sense that would change, 19:28 in an absolute sense it would not change. 19:30 Whatever the Bitcoin L1 is producing in transaction fees, 19:34 that is how much everyone cares about, the miners care about L1. 19:40 So they care some absolute amount. 19:42 And the fact that on the side they get some other huge thing, 19:45 that doesn't quite make as much of a difference 19:49 because in fact it's actually a good thing 19:52 since all the L2 transactions are Bitcoin transactions. 19:55 The miners are less likely to be distracted by some other thing 19:59 like if there's government licensing 20:01 or some other person is trying to bribe them 20:04 or give them some kind of tax break or something. 20:06 They are more likely to just ignore that. 20:09 Because they'll just say, we're making so much money, 20:12 enormous amounts of money. 20:14 I think that's the best way to keep the miners loyal to the Bitcoin, 20:19 the 21 million Bitcoins. 20:22 I think it's a very good thing and to be expected. 20:26 I do think in the future most of the economic activity 20:29 will be on these L2 sidechains. 20:33 So it's just not possible to get the L1. 20:37 The L1 blocks are very small. 20:39 And when the fees are high, people get annoyed 20:41 and the user experience is terrible. 20:43 So people just stop. 20:45 This happens all the time where the price is going up 20:48 and then people call me. 20:51 They say, oh, I know you're into Bitcoin. 20:53 But then the fees are $20 or $30. 20:55 So you try to onboard them to Bitcoin. 20:57 But it's just so hopelessly awkward 20:59 because the fees at that moment in time are so high. 21:01 And the fees come back down. 21:03 But that's also when the bubble... 21:05 It's something where there's an endless bubble 21:07 of just onboarding more and more people geometrically. 21:10 And so L1 is just not configured for that. 21:13 And we don't need L1 to be configured for that 21:15 because we can have all the benefits on these L2s 21:18 that are optional and we can even sacrifice the L2s. 21:22 So the L2s will be more of this high turnover, low... 21:28 There will probably be fewer coins. 21:30 There may only be like 100,000, 150,000 coins on all of them, 21:34 but the turnover could be 500 times that of L1 21:38 or even like 10,000 times. 21:40 It could be very different. 21:42 So it's like the cash you have in your wallet, 21:44 it might turn over a lot, 21:46 and you have a savings account that you don't touch, 21:48 something like that. 21:51 Yes, so that was a great question. 21:53 So if anyone has any other questions, there's a microphone. 21:59 Yes, it's okay. Don't be shy. 22:01 I have a question about Drivechains, sidechains. 22:05 I'll throw one out there. 22:07 What are the... 22:10 I don't know if you can slightly... 22:12 What are the challenges, like the lack of liquidity 22:15 and having to lock in channels? 22:19 Could you do that in a sidechain? 22:21 Yes, you can, and it would be better. 22:24 I have written two blog posts. 22:26 One is called 22:27 Lightning Network Fundamental Limitations, 22:29 and the other one is called The Ellen Black Bell. 22:31 The Ellen Black Bell just has a list of quotes from people. 22:34 Because I'm a very technical person, 22:35 and many of my friends are into lightning, 22:37 but the people who are technical people who work on lightning, 22:42 they have said many things publicly, 22:44 and I've just collected them all in one place. 22:46 So there's the details, 22:48 and then there's just the overall vibe, 22:52 for lack of a better word, 22:54 which is like... 22:58 People don't act as though they're really, really proud of it, 23:00 and they want everyone to investigate the details. 23:02 They're not bringing everyone in to explain it easier and easier, 23:06 and getting more people to actually use it. 23:08 People just kind of are excited about it, 23:10 and then they collect the salary as an engineer, 23:12 and then they just kind of hope people ask a few questions, 23:14 but not too many. 23:16 That is the vibe of the lightning network, unfortunately. 23:18 And you can look at some other things, 23:21 like numbers on how many coins are in the lightning network, 23:24 which is less than 5,000. 23:27 That is hundredths of a percent, 23:29 so it's just not very much. 23:31 I just think it's not... 23:33 It's more and more popular among the open source devs to just say, 23:36 what's the next thing going to be? 23:38 People are talking about covenants. 23:40 People are trying to talk about the next thing, 23:42 because they just want to quietly kind of forget about it. 23:45 More to that question, 23:48 I think every L2 that does not pass all the fees down to the L1 miners 23:53 will eventually have a problem if it is successful. 23:56 So maybe it will fail, and no one will care. 23:59 But if it is successful, 24:01 then the miners will be looking over, 24:03 and they'll say, these people are making a hundred billion, 24:05 a hundred billion dollars a year, 24:07 but we're not, because we only get the L1 amount. 24:10 And so then the miners will think, 24:12 oh, maybe we should either vertically integrate, 24:14 and just do, we'll do our own, 24:16 like marathon lightning or whatever, 24:18 marathon LSP or whatever you want to call it, 24:20 or foundry, right? 24:22 More likely like foundry LSP. 24:24 So let's see, like foundry LSP or the foundry arc supernode. 24:27 People either do that, 24:29 or they will just attack and destroy that L2. 24:32 They'll say, we don't want that, 24:34 because we want something that gives us the money. 24:36 So I do think anything that doesn't pass those fees down 24:39 is probably not viable. 24:41 That's enough. 24:43 Given that Enduro is a multiplex, 24:46 that is a multiplex. 24:48 You know, you might want to think of it 24:50 as kind of a halfway point 24:52 to your ultimate vision for Drivechains. 24:54 Also, do you like the scene 24:56 of the myriad of things 24:58 that we've created 25:00 for the Drivechain platform 25:02 in the main time. 25:04 We've already done one. 25:05 Yeah, but you guys won't do it. 25:06 The Zcash sidechain is the most cypherpunk. 25:08 It's the most legit. 25:09 You guys are not going to touch that one. 25:10 See, that's why. 25:12 But, yeah, well, we are... 25:14 You do the prediction market one or two also. 25:16 I've got lots of stuff that I've written for free, 25:18 as you know. 25:19 Fully open source. 25:20 Hopefully those will come soon to the Enduro platform. 25:23 Is that right? 25:24 Yeah, of course, yeah. 25:28 Okay, great, yes. 25:31 Okay, well, thank you very much. 25:33 Okay, cool. 25:34 I'll see you again at 3 o'clock here on the stage. 25:37 I'll be back at 3 with Robin Linus, 25:39 the genius inventor of BitVM. 25:41 Thank you. 25:43 Robin Linus.