1 00:00:00,000 --> 00:00:04,120 here. Okay, thank you for being right on time and responsible. That's awesome. So 2 00:00:04,120 --> 00:00:06,480 we're gonna talk about Drivechains. That's what you think you're talking 3 00:00:06,480 --> 00:00:11,400 about? Okay, good. So we are winding down day one at the Litecoin Summit. Are y'all 4 00:00:11,400 --> 00:00:19,520 excited? I feel like y'all are just mailing that in a little bit, but it's 5 00:00:19,520 --> 00:00:23,040 alright. It's okay. Paul is the founder and CEO of 6 00:00:23,040 --> 00:00:30,800 at LayerTwo Labs, creator of BitcoinHivemind.com, blogger drivechain.info, 7 00:00:30,800 --> 00:00:38,000 and the author of BIP300 slash 301, Coindesk.com, consensus long link here 8 00:00:38,000 --> 00:00:42,280 that is hard to say to everybody. And that's all I got. And so he's gonna talk 9 00:00:42,280 --> 00:00:46,200 to us about Drivechains, so get your questions ready. And this is to 10 00:00:46,200 --> 00:00:49,640 demonstrate what's kind of rude while the MC's talking to do, if you do that 11 00:00:49,640 --> 00:00:53,440 while the MC's... we're just doing that on purpose to demonstrate that you need to 12 00:00:53,440 --> 00:00:57,120 have a little more self-awareness than that. They're doing a great job of 13 00:00:57,120 --> 00:01:01,040 making it look like they don't have that, but that's okay. It's awesome. They don't 14 00:01:01,040 --> 00:01:04,320 even know we're talking about them. That's okay. Give it up for the kids, the 15 00:01:04,320 --> 00:01:09,760 future of Litecoin, everybody. There they are. That's awesome. That's cool. This is 16 00:01:09,760 --> 00:01:13,400 not a conversation, but I appreciate your effort. Okay, awesome. Let's give it up for 17 00:01:13,720 --> 00:01:21,040 Paul Sztorc, everybody. Sztorc, did I say it right? Rhymes with quartz and sport. That's right, yes. 18 00:01:21,040 --> 00:01:28,520 Thank you. Okay, so I'm normally, you know, a Bitcoiner, of course, and this is my 19 00:01:28,520 --> 00:01:32,760 idea for Bitcoin, but I was asked to come here and show it to Litecoin. Litecoin 20 00:01:32,760 --> 00:01:39,800 took the SegWit idea before Bitcoin, and in particular, I do think that Litecoin... 21 00:01:40,120 --> 00:01:43,720 I mean, I am a maximalist at heart, and I think only one coin will reach eight 22 00:01:43,720 --> 00:01:47,480 billion people, and that coin will win, and everything else will probably go to 23 00:01:47,480 --> 00:01:50,720 zero. So I think if you're Litecoin, you've got to think, like, how can I 24 00:01:50,720 --> 00:01:57,920 exploit the weaknesses of BTC? But so this idea, it's very simple to me, but for 25 00:01:57,920 --> 00:02:01,080 some reason, it's complicated. Even the best minds in Bitcoin don't really 26 00:02:01,080 --> 00:02:05,200 understand it, but we have working software that has a GUI. So this is, like, 27 00:02:05,360 --> 00:02:11,160 in one slide, what I think what people should do, and that is try the software. 28 00:02:11,160 --> 00:02:14,480 Go to LayerTwoLabs.com slash download, and I'm going to give you some screenshots 29 00:02:14,480 --> 00:02:19,440 just so you see what this sort of looks like, but just try it out. It has a fake 30 00:02:19,440 --> 00:02:24,200 play money coins. So we have a faucet and everything. You can get coins. These are 31 00:02:24,200 --> 00:02:27,800 not Bitcoins. These are not Litecoins. They're fake coins, but they show you what 32 00:02:27,800 --> 00:02:32,000 the software would do if you activated this in Litecoin. And then I have a 33 00:02:32,080 --> 00:02:37,720 website, drivechain.info. There's an unbelievable amount of content there. I 34 00:02:37,720 --> 00:02:41,040 have another site, BIP300CUSF.com. I'll talk about that if anyone has any 35 00:02:41,040 --> 00:02:44,640 questions on exactly what to do. And then I think, like, you know, like, you get 36 00:02:44,640 --> 00:02:50,160 into your head, like, kind of what I am planning for this idea, which is to reach 37 00:02:50,160 --> 00:02:54,240 eight billion people and have planetary scale, have Zcash-level privacy, have all 38 00:02:54,240 --> 00:02:58,160 these features, live in a world where the different developers can disagree with 39 00:02:58,160 --> 00:03:01,160 each other but still be using the same coin. So if you think that this is a good 40 00:03:01,160 --> 00:03:05,240 idea, this is a very easy thing to actually add to Litecoin, I think. I haven't 41 00:03:05,240 --> 00:03:09,920 actually looked into it that much, but there is this activator client that 51% of 42 00:03:09,920 --> 00:03:14,080 the hash rate needs to run and that's basically it. And you can even shut it off 43 00:03:14,080 --> 00:03:18,000 later. So you can just try this out and maybe if the entire community hates it for 44 00:03:18,000 --> 00:03:23,160 some reason, you can just go back. So this is, you know, the download page. So 45 00:03:23,160 --> 00:03:27,200 there's nothing for, you know, a mobile phone yet, but we have all three operating 46 00:03:27,200 --> 00:03:30,760 systems you can download. And we have a GUI. And this is sort of what it looks 47 00:03:30,760 --> 00:03:35,120 like. You have this is a version of Bitcoin on the top and then we have all these 48 00:03:35,120 --> 00:03:42,040 other chains that are one of them is a version of Zcash that I call Zside. And it 49 00:03:42,040 --> 00:03:46,960 is a clone of the latest version of Zcash, but it has no coins on it. You just send 50 00:03:46,960 --> 00:03:53,560 the coins from L1 to this L2 chain and then you can use Z addresses and you have 51 00:03:53,560 --> 00:03:59,240 privacy and you have reusable long ZK-based address. And some of these other 52 00:03:59,240 --> 00:04:03,440 ones are just like test chains, a blank chain that just says nothing so it's easy 53 00:04:03,440 --> 00:04:08,640 for you to add your own thing to that. And then Thunder is like a large block side 54 00:04:08,640 --> 00:04:12,520 chain. That's like my joke a little bit. So this is the drivechain.info site. This 55 00:04:12,520 --> 00:04:16,040 is just a screenshot. But I have an unbelievable amount of content here. I have an 56 00:04:16,040 --> 00:04:21,080 enormous number of endorsements as well. If you go to LayerTwoLabs.com slash friends, 57 00:04:21,080 --> 00:04:25,360 I have a lot of endorsements, but I have one of them here about Adam Beck said this 58 00:04:25,360 --> 00:04:28,400 on stage in Baltic Honey Badger. He said, a Drivechain arguably could have been more 59 00:04:28,400 --> 00:04:33,040 important or useful than taproot. So, that's just one tiny endorsement. But it's 60 00:04:33,040 --> 00:04:36,640 very, very, very, and this is this thing CUSF which is this way of activating a soft 61 00:04:36,640 --> 00:04:42,160 fork. This are, again, this already exists so you can already download it and you just 62 00:04:42,160 --> 00:04:50,440 go to this site and I have a paper that explains how it works. So, yeah, again, if you, 63 00:04:50,440 --> 00:04:54,840 if Litecoin could do this, by this I mean this screenshot on the right, I'm not completely 64 00:04:54,840 --> 00:05:02,160 sure if there's the, if it can do this like the ZMQ block thing, but if Litecoin is up 65 00:05:02,160 --> 00:05:07,920 to date with Bitcoin, then it can. And so then you just run this stuff and you just 66 00:05:07,920 --> 00:05:13,200 need 51% hash rate to run this. And then as I mentioned before, you can actually just 67 00:05:13,200 --> 00:05:17,160 shut it off and deactivate it if you'd. This is kind of annoying because anyone who has 68 00:05:17,160 --> 00:05:23,560 put coins into the system will maybe lose them if you were to reverse it. But other 69 00:05:23,560 --> 00:05:28,000 than that tiny detail is kind of like a very low cost thing. So, that was kind of just 70 00:05:28,000 --> 00:05:32,240 me trying to throw a lot at you there. But now I have, this is, what I normally do is 71 00:05:32,240 --> 00:05:38,840 give this talk to the Bitcoiners about what Drivechain is. So now I'm going to try to 72 00:05:38,840 --> 00:05:43,640 go a little through that, but I do think that Q&A is probably a much better, has a much 73 00:05:43,640 --> 00:05:48,600 better chance of giving you something that you actually will appreciate and get something 74 00:05:48,600 --> 00:05:53,880 useful out of. But I'm going to try to give a skeleton here first. And so the idea is, 75 00:05:53,880 --> 00:05:57,240 again, you just have to cross off Bitcoin and put Litecoin for everything here because 76 00:05:57,240 --> 00:06:00,600 I really am a Bitcoiner and I'm here for the Bitcoin conference. I'm speaking at the Bitcoin 77 00:06:00,600 --> 00:06:03,960 conference, but I was asked to come here and I think it would be great if Litecoin took 78 00:06:03,960 --> 00:06:10,920 this idea. But just replace Bitcoin with Litecoin. And so the idea is that now everything has 79 00:06:10,920 --> 00:06:16,920 its own chain and its own coin. It has its own software and its own coin. But with the 80 00:06:16,920 --> 00:06:23,840 Drivechain idea, you only have the one coin. You don't need any of these other coins anymore. 81 00:06:23,840 --> 00:06:29,720 And then the coins travel among different pieces of software that may have completely 82 00:06:29,720 --> 00:06:33,100 different, they may be written in completely different programming languages. They may 83 00:06:33,100 --> 00:06:37,160 be doing completely different things. They may have different block size. So if there's 84 00:06:37,160 --> 00:06:41,960 ever a big dispute such as the block size dispute or some people don't really want too 85 00:06:41,960 --> 00:06:48,840 much privacy on BTC for various reasons but other people do want it. So if there's a dispute, 86 00:06:48,840 --> 00:06:55,720 you just have different pieces of software. And I have some metaphors about this, about 87 00:06:55,720 --> 00:07:00,040 like, okay. So, yeah, again, my view is that really that one single coin will win and the 88 00:07:00,040 --> 00:07:07,600 rest will be defeated. But definitely each of the types of thing that people will want 89 00:07:07,600 --> 00:07:12,280 to do with the blockchain, all of those will exist in different, in form of different software. 90 00:07:12,280 --> 00:07:17,760 So I kind of have like, Bitcoin today would be like this old phone. And then eventually, 91 00:07:17,760 --> 00:07:22,680 you still have something that we still call a phone, but it does all these other things. 92 00:07:22,680 --> 00:07:29,280 You know, it does, you know, it takes video. It takes, it plays audio. It, you know, it 93 00:07:29,280 --> 00:07:33,800 does all these things. So, money has network effects. So that's kind of a, that's kind 94 00:07:33,800 --> 00:07:37,480 of one of the reasons why I think. So, yeah, basically, this is kind of like, instead of 95 00:07:37,480 --> 00:07:44,000 Ethereum, the altcoin, you have this like bit Ethereum, which is like an L2 that does 96 00:07:44,000 --> 00:07:48,640 everything Ethereum would do, only there are no coins on there to begin with. You send 97 00:07:48,640 --> 00:07:56,440 the coins back to and from that sort of similar to the Lightning Network. So, yeah, the goal 98 00:07:56,440 --> 00:08:00,920 would be that if, you know, some people, everyone disagrees over what things to do. So as people 99 00:08:00,920 --> 00:08:05,360 say, oh, this is great, but can it do smart contracts? Can it do whatever? And instead 100 00:08:05,360 --> 00:08:11,000 of arguing with them, you just say yes. And similarly, a lot of people have fringe ideas, 101 00:08:11,000 --> 00:08:18,800 99% of which will be bad, but some of them will be good. And so, how do we know the 99% 102 00:08:18,800 --> 00:08:23,040 bad versus some that are good? Someone says, oh, I think I can improve Litecoin in this 103 00:08:23,040 --> 00:08:28,840 case. It only needs my new idea, which is whatever, MimbleWimble extension block. And 104 00:08:28,840 --> 00:08:33,320 then people, you know, they have to go through this big quality control process, in which 105 00:08:33,320 --> 00:08:37,160 case, you'll probably filter some things out that are good or let some things through that 106 00:08:37,160 --> 00:08:42,200 are bad. Or you just let them in, you just say this, use this idea of BIP300, you have 107 00:08:42,200 --> 00:08:52,360 your own zone and that lets each person try out the ideas that they actually like. Okay. 108 00:08:52,360 --> 00:08:56,960 Yeah, this is like not that important per se, but this is like me trying to say that 109 00:08:56,960 --> 00:09:02,000 this is similar to Lightning where you have the coins, the orange coins are in the bottom 110 00:09:02,000 --> 00:09:09,280 right and you move the coins to maybe the Lightning network, which I don't recommend 111 00:09:09,280 --> 00:09:13,640 if you saw me on the panel earlier today. But you can also move them to like bit Zcash, 112 00:09:13,640 --> 00:09:18,400 which is this version of Zcash that is, it has all the feature. It is literally like 113 00:09:18,400 --> 00:09:25,760 the latest version of the Zcash node software, but just modified slightly so that it only 114 00:09:25,760 --> 00:09:30,840 moves around coins that have been sent to it from an L1 that has BIP300. So that'd be 115 00:09:30,840 --> 00:09:37,320 Litecoin in this case. You have Litecoin, send the coins over to the Zcash world and 116 00:09:37,320 --> 00:09:41,720 you'd have all those features and you could do the same with the Ethereum or any other 117 00:09:41,720 --> 00:09:49,000 EVM chain or anything else, anything with large blocks or whatever other feature. And 118 00:09:49,080 --> 00:09:57,200 the way this is supposed to work is that there's only a one way like causality. So if Bitcoin 119 00:09:57,200 --> 00:10:02,680 core or Litecoin, the blockchain reorganizes its blocks, then everything above it will 120 00:10:02,680 --> 00:10:07,800 also reorganize, but it's not the other way around. Any chaos that happens in the upper 121 00:10:07,800 --> 00:10:14,240 zone will be limited over there and it will not destroy L1. So if you go on to L2, you 122 00:10:14,240 --> 00:10:19,720 choose to take on additional risk and then you get also any, the flexibility and benefits 123 00:10:19,720 --> 00:10:24,480 of that. So that's the idea. I have like a tiny sort of description of how it works, 124 00:10:24,480 --> 00:10:27,920 but I don't know if it will make any sense, but hopefully it will make some sense, which 125 00:10:27,920 --> 00:10:33,040 is you have these blocks on the bottom. Those would be L1 blocks. So in this case, it'd 126 00:10:33,040 --> 00:10:39,240 be lightning, excuse me, Litecoin blocks, the blue ones. And then the reddish ones on 127 00:10:39,240 --> 00:10:44,560 top. I think that it's not really supposed to be blue. That is just a weird effect of 128 00:10:44,560 --> 00:10:49,400 the PDF conversion. It's just supposed to be red only on the top. But the red ones would 129 00:10:49,400 --> 00:10:55,840 be this BitMonero thing. That's everything Monero is, but only using the Litecoins that 130 00:10:55,840 --> 00:11:00,680 are sent to it. And they each have a bunch of blocks and they have block headers. Block 131 00:11:00,680 --> 00:11:06,320 header is the square. And what happens is in BIP300, there's this huge summary of everything 132 00:11:06,360 --> 00:11:09,720 that happens over three months. Everything that happened over the last three months is 133 00:11:09,720 --> 00:11:15,440 put into this little hash. And the hash is what is inserted in L1. The hash is really 134 00:11:15,440 --> 00:11:21,920 what of the, it is a description of all the withdrawal activity. So the deposit and withdrawal 135 00:11:21,920 --> 00:11:28,920 activity is covered by this big gray sheet. And then the layer one node only sees this 136 00:11:29,760 --> 00:11:36,760 thing that was inserted into the L1 Coinbase. So it's the L, in BIP300, the L1 layer is 137 00:11:38,280 --> 00:11:42,960 not actually looking at what happened on L2. It just looks at this summary that is very 138 00:11:42,960 --> 00:11:49,440 rare once every three months or so. And this is like, I have some examples of our, this 139 00:11:49,440 --> 00:11:56,240 is what our software looks like. So there's like an example of this happening. This is 140 00:11:56,360 --> 00:11:59,480 just to give you an idea that this is really not vaporware and we've actually worked on 141 00:11:59,480 --> 00:12:03,640 it and it exists. So you should try it out for yourself, which I think is the best way. 142 00:12:03,640 --> 00:12:08,040 I certainly did not understand how Bitcoin worked at all until I downloaded the software 143 00:12:08,040 --> 00:12:12,960 and played with it for the first time. And of course, many people say that no one ever 144 00:12:12,960 --> 00:12:17,920 really understands Bitcoin fully. So, there's definitely some truth to that. Jameson Lopp, 145 00:12:17,920 --> 00:12:21,480 I think, often says something like that. Yeah, another interesting thing about this project 146 00:12:21,480 --> 00:12:28,040 is all of the fees, as I mentioned earlier on the panel, the lightning panel, with this 147 00:12:28,040 --> 00:12:31,960 particular type of L2, all of the fees on all of the L2 chains, they all go down to 148 00:12:31,960 --> 00:12:38,960 the L1 miners. So it's my view that this is the endgame, like, in at the, what I'm trying 149 00:12:39,560 --> 00:12:46,560 to say is in the long run future, if we succeed at all, like maybe everything in crypto will 150 00:12:47,120 --> 00:12:53,800 fail and go to zero. But if something succeeds and is wildly popular with among people of 151 00:12:53,800 --> 00:12:59,000 the earth, people will be using it a lot and generating enormous amounts of transaction 152 00:12:59,000 --> 00:13:06,000 fee revenue. And so then when we look at who's going to be getting all that revenue, it really 153 00:13:06,480 --> 00:13:12,080 must be the L1 miners because if it is not, the miners will be maybe envious or jealous 154 00:13:12,080 --> 00:13:19,080 of whatever else is getting it, like a lightning service provider or arc super node or whatever 155 00:13:20,840 --> 00:13:27,840 it is, liquid federation. So, all these L2s have this property that the transaction fees 156 00:13:29,800 --> 00:13:35,680 are not paid to L1 miners, but with this idea, they are. And I think in the long run, it 157 00:13:35,680 --> 00:13:41,120 will be, basically, all the other L2s will be killed off because the miners will think, 158 00:13:41,120 --> 00:13:43,880 well, I want all this money. I said this could be hundreds of billions of dollars per 159 00:13:43,880 --> 00:13:50,760 year. If on the up chance something is successful with the general public and miners have the 160 00:13:50,760 --> 00:13:55,960 ability to control the L1 chain, so they will, they'll either vertically integrate with all 161 00:13:55,960 --> 00:14:01,120 these L2s or they will just destroy them to get either way to get the money. And if they 162 00:14:01,120 --> 00:14:07,000 vertically integrate, then most of the lightning security model is just security theater and 163 00:14:07,000 --> 00:14:11,120 so people will then, they won't like it anymore. And they'll like something like this instead, 164 00:14:11,120 --> 00:14:16,720 which is still secure even if. So, this is a neat idea where I'm getting a lot more money 165 00:14:16,720 --> 00:14:23,720 to the miners. This idea is a very miner-centric idea. And luckily, miners get, have the opportunity 166 00:14:23,840 --> 00:14:30,840 to make a large and growing in an unlimited sense amount of money if they try the idea 167 00:14:31,440 --> 00:14:38,440 out. So, it's kind of a neat idea. These are sort of old, but that's the basic idea. Yes, 168 00:14:41,160 --> 00:14:46,600 I did have, this is a 15 minutes, so I actually think Q&A is way more productive, but I have 169 00:14:46,600 --> 00:14:53,600 some weird other examples here of which altcoins I think would make great L2 Drivechains, 170 00:14:53,800 --> 00:15:00,800 L2 sidechains. So, I will do that unless anyone really has like a question or something 171 00:15:01,960 --> 00:15:04,960 because this is halfway through and I think that, yes, there is, yes, a question. 172 00:15:04,960 --> 00:15:11,960 The question was about if you create assets on a sidechain. The, in that sense, if you, 173 00:15:18,440 --> 00:15:22,840 we have a sidechain for that, they're called bit assets. And this is similar to like ordinals 174 00:15:22,840 --> 00:15:28,640 or counterparty or ERC20 where once you're on the sidechain, this would be like its 175 00:15:28,640 --> 00:15:33,920 own thing where you have your own keys, you have your own randomness, and you would self-custody 176 00:15:33,920 --> 00:15:40,120 that in the same sense. I mean, once you're on the L2, you've adopted that new L2 security 177 00:15:40,120 --> 00:15:47,120 model. And from then on, it's exactly the same as what would ERC20 would be in Ethereum. 178 00:15:47,320 --> 00:15:53,120 So, it depends on how, it depends on what you're copying. But whatever you copy, it'll 179 00:15:53,120 --> 00:15:55,120 be just like that. Yes. 180 00:15:55,120 --> 00:16:02,120 Yes, the question about the emissions of the coins. So, this is, again, these are, these 181 00:16:05,200 --> 00:16:10,040 are going to be exactly like the altcoins that they copy except for that one thing, 182 00:16:10,040 --> 00:16:17,040 where they will, those coins, the L2 blockchains, they do not have their own coin at all necessarily 183 00:16:17,080 --> 00:16:22,800 and you could add one. But they, when you have, you're going to have an L1 that is Litecoin, 184 00:16:22,800 --> 00:16:27,080 84 million Litecoin, and then you have the L2. And on the L2's first day, it will have 185 00:16:27,080 --> 00:16:33,200 zero coins on it. You'll have zero coins for a while until someone chooses to deposit. 186 00:16:33,200 --> 00:16:36,880 And those would be like the first four coins or whatever that are over there. So, there 187 00:16:36,880 --> 00:16:42,560 is no tail emission, there is no emission at all, there are no new coins being created 188 00:16:42,560 --> 00:16:47,560 on the L2. The coins are only created on L2 when they're locked on L1, and then when 189 00:16:47,560 --> 00:16:52,400 they're withdrawn from the L2 and destroyed, they get unlocked on L1, they cannot be moved. 190 00:16:52,400 --> 00:16:58,560 So, the coins are just moving around and so there is no emission of any kind. Does that 191 00:16:58,560 --> 00:16:59,560 make sense? No? All right. 192 00:16:59,560 --> 00:17:18,440 Yes. No. You deposit the LT, you deposit Litecoin to this thing and this thing does 193 00:17:18,440 --> 00:17:26,160 not necessarily know anything about the real Monero at all. This is like the opportunity 194 00:17:26,160 --> 00:17:32,320 to take advantage of the Monero's ring signatures and people like the privacy feature, but there 195 00:17:32,320 --> 00:17:36,600 is no actual XMR. And a lot of people get confused about that for some reason. I think 196 00:17:36,600 --> 00:17:49,240 this is a, maybe I should explain it to you. Exactly, yes. There is no XMR. And in fact, 197 00:17:49,240 --> 00:17:52,280 that's partly, some of the wording on the slides, I'm implying that there will be no 198 00:17:52,280 --> 00:17:57,240 need for the real XMR. Once one coin takes over as a big enough foothold to, it will 199 00:17:57,240 --> 00:18:03,120 be able to do every actual thing that people want it to do and there will be no need for 200 00:18:03,120 --> 00:18:07,320 the actual altcoin itself. That was, maybe I'll try to like go back to it. It's a lot 201 00:18:07,320 --> 00:18:17,880 of slides I got, but I'll just, you know, if you, yes. BIP300 is not in use. I'm sorry. 202 00:18:17,880 --> 00:18:22,840 It's, you'd be the first. I have never released an activation client until like this month, 203 00:18:22,840 --> 00:18:27,480 so no one really could use it. But I talked about this idea for a very long time as some 204 00:18:27,480 --> 00:18:32,240 people know. And it just had no activation client for a while, but we have had, for many 205 00:18:32,240 --> 00:18:36,320 years, we've had our test network which is a fork, it was a fork of an old version of 206 00:18:36,320 --> 00:18:43,400 Bitcoin version 1699. That's how old this was. And so that's like what the screenshot 207 00:18:43,400 --> 00:18:49,840 was you saw before. And so we've had that actual code. And so I was more just tinkering 208 00:18:49,840 --> 00:18:57,280 with the, our own network with the play money and not releasing a, an act. But now there 209 00:18:57,280 --> 00:19:02,880 is an act. This CUSF, CUSF activator, that does now exist and that is the easiest and 210 00:19:02,880 --> 00:19:17,360 best way to activate anything, in my opinion. It's sort of similar because the MimbleWimble 211 00:19:17,360 --> 00:19:24,880 extension block is like a new optional thing that Litecoin decided to do. And in fact, 212 00:19:24,880 --> 00:19:28,960 my opinion is that a sidechain is very similar to an extension block. It's kind of like an 213 00:19:28,960 --> 00:19:34,160 optional extension block where there's that big filter that I had before, that gray blob 214 00:19:34,160 --> 00:19:42,400 that became the green thing. The Litecoin node is only seeing the green, the tiny green 215 00:19:42,400 --> 00:19:46,960 thing and it's ignoring what's going on. But really these are an unlimited amount of extension 216 00:19:46,960 --> 00:19:51,440 blocks that are opaque, sort of. So you have unlimited block space and you have unlimited 217 00:19:52,440 --> 00:20:08,160 in there. And now, yes, hello. Yes, you did. Fifty-one percent of the hash power is needed 218 00:20:08,160 --> 00:20:16,920 to activate. This is because although BIP300 does not, although it does not look at everything 219 00:20:16,920 --> 00:20:25,320 that is happening in the L2 chain, it is doing something on L1 and that thing is either, 220 00:20:25,320 --> 00:20:31,360 you either conform to that, those rules for this narrowly defined like OPNOT5, you either 221 00:20:31,360 --> 00:20:36,320 conform to that or you do not. And if you do not, it has to reject the block. And that 222 00:20:36,320 --> 00:20:40,840 only, that doesn't matter if you have less than 50% hash rate. If you reject the block, 223 00:20:40,840 --> 00:20:46,400 you'll just be the only one not on the chain anymore. But if 51% or more rejects the block, 224 00:20:46,400 --> 00:20:51,240 then actually everyone, even just by doing nothing, everyone will automatically only 225 00:20:51,240 --> 00:20:54,600 be on a version of the chain where the rule is followed all the time, even the people 226 00:20:54,600 --> 00:20:58,480 who do not want to upgrade to even do this. So people could freely run old version of 227 00:20:58,480 --> 00:21:04,160 Litecoin, not pay any attention to any of this at all and they will not be affected 228 00:21:04,160 --> 00:21:14,120 really. But that is why 51% is required to activate any soft fork which this is. So that 229 00:21:14,120 --> 00:21:22,760 whoever is making the blocks, whichever mining pool or et cetera, they must run the activator 230 00:21:22,760 --> 00:21:27,080 to make sure that when they make the block, it is not accidentally violating one of the 231 00:21:27,080 --> 00:21:40,920 BIP300 rules. Does that make sense? No, it's on the L1 side. Yes. The BIP300 part is the 232 00:21:40,920 --> 00:21:45,720 L1 hash rate. The L1, that's the L1 node, L1 hash rate. But actually, all the things 233 00:21:45,720 --> 00:21:51,560 that are happening on the L2 chains are on their own L2 network. I don't know how big 234 00:21:51,560 --> 00:21:56,320 of a, I don't, my guess is it wouldn't be that big of a thing. I mean, every soft fork 235 00:21:56,320 --> 00:22:01,360 is activated this way and you just put out a new version of the software and if people 236 00:22:01,360 --> 00:22:06,200 upgrade. In this case, you don't even need to do that. You just need to ask people to 237 00:22:06,200 --> 00:22:12,080 run the activator if they want and they can, in fact, stop running the activator if they 238 00:22:12,080 --> 00:22:22,840 really regret it for some reason. Thank you. Yes. If anyone has any more questions. So, 239 00:22:22,840 --> 00:22:27,240 seven minutes, I can go back to sidechains. I think we should copy because I actually 240 00:22:27,240 --> 00:22:34,520 have a lot to say about that also. But if anyone has a question, I look down now. Okay. 241 00:22:34,520 --> 00:22:43,480 So, yes. Zcash is the best one to copy because you have all this privacy and we have already 242 00:22:43,480 --> 00:22:48,400 built it and it already works, so I just take it for free and it gives everyone one single 243 00:22:48,400 --> 00:22:53,080 reusable address. So this is very cypherpunk and this is very cool. This is a cool thing 244 00:22:53,080 --> 00:22:59,480 to just do quickly out of the gate before anyone can complain or, you know. And I had 245 00:22:59,480 --> 00:23:06,280 this slides because, yes, I was noticing as a Bitcoiner that actually Monero is stealing 246 00:23:06,280 --> 00:23:12,000 a lot of Bitcoin's thunder. And in fact, I don't know if you guys have seen this but 247 00:23:12,000 --> 00:23:16,820 I think it was Peter McCormick interviewed Michael Saylor and Michael Saylor famously 248 00:23:16,820 --> 00:23:21,320 said there is no second best. So I'm sure that would make him very popular at Litecoin 249 00:23:21,320 --> 00:23:26,640 event. But he said that and then Peter McCormick asked him about, well, what about these people 250 00:23:26,640 --> 00:23:30,600 who really like privacy? And then Michael Saylor said, well, you know, if you really 251 00:23:30,600 --> 00:23:34,120 like privacy, maybe you do need a Monero. And of course, the Monero community took that 252 00:23:34,120 --> 00:23:41,160 little clip and they put it all around. But this shows like, this is an actual use case 253 00:23:41,160 --> 00:23:45,760 that some people care about. And in particular, people who care about the most are, they can't 254 00:23:45,760 --> 00:23:50,040 be too loud about it, right? You know, so that's something to keep in mind. Namecoin, 255 00:23:50,040 --> 00:23:55,560 I think Namecoin is like a totally, I don't know what to say about this. I think this 256 00:23:55,560 --> 00:24:00,320 idea will be so big in the future. But for some reason, people do not give it the right 257 00:24:00,320 --> 00:24:05,200 amount of attention today. Namecoin was actually the first, is originally sort of invented 258 00:24:05,200 --> 00:24:10,680 by Satoshi and everyone should read through this thread. The DNS in generalizing Bitcoin 259 00:24:10,680 --> 00:24:15,760 is fascinating. But Namecoin lets us do all kinds of crazy things and I have written a 260 00:24:15,760 --> 00:24:20,120 big article about this that you can read and this is the title. And so if you just Google 261 00:24:20,120 --> 00:24:25,280 it, you'll find it. But I've written a huge about it that's going to replace logging in, 262 00:24:25,280 --> 00:24:32,160 usernames, passwords, email, get rid of spam, do all kinds of magical things. So, I think 263 00:24:32,160 --> 00:24:36,600 this idea is like super good. And we are working on a version that I really like but it's not 264 00:24:36,600 --> 00:24:41,520 completely finished right now. Yeah, you have these people like impersonators and stuff. 265 00:24:41,520 --> 00:24:46,800 This is all this, the Namecoin sidechain which I call Bitnames. This will just get 266 00:24:46,800 --> 00:24:51,040 rid of all this type of thing. Seizing the domain is to be impossible. It just will literally 267 00:24:51,040 --> 00:24:55,320 not be possible to do this. So like even, you could have like whatever, Ukraine.gov 268 00:24:55,320 --> 00:25:00,040 and a foreign army could occupy the whole country but they just wouldn't get the name. 269 00:25:00,040 --> 00:25:06,240 It would be like illegitimate. Then people like have this one, I think. So, yeah. I think, 270 00:25:06,240 --> 00:25:14,720 yeah. So, people love this NFT, ERC20, ordinals stuff. I say, let everyone have a good time 271 00:25:14,720 --> 00:25:22,400 if they want to. So, copy that. And then I'm a huge proponent of this prediction market 272 00:25:22,400 --> 00:25:26,680 idea which has gotten, I've always been a huge proponent of this idea since a very young 273 00:25:26,680 --> 00:25:33,000 age and even since 2012 and 2013. I started building this Bitcoin prediction market software 274 00:25:33,000 --> 00:25:37,600 and now actually every election, it pops up a little bit. But in particular, this election 275 00:25:37,600 --> 00:25:42,640 with Polymarket, we are seeing the cultural significance of these prediction markets. 276 00:25:42,640 --> 00:25:46,880 So, this is another thing that I think would make a great L2 chain and this is some of 277 00:25:46,880 --> 00:25:53,880 the, some screenshots of the software that I made back in 2015, I think these are from. 278 00:25:53,880 --> 00:25:58,600 Okay. Yeah, there's some other ideas. I think it was just three, three and a half minutes 279 00:25:58,600 --> 00:26:02,720 a little. So, maybe if anyone has any questions, if anyone thought of a question, that would 280 00:26:02,720 --> 00:26:11,760 be a great time. Yes. Yes. Yeah, all of the L2 chains, I think, should and must be merge 281 00:26:11,800 --> 00:26:17,200 mined with the L1 chain because first of all, this is like basically free. This is very 282 00:26:17,200 --> 00:26:22,480 convenient. All the chains get the same hash rate in the proof of work context and then 283 00:26:22,480 --> 00:26:27,400 all the fees go to the L1 miners. And if you don't do that, then you have to like answer 284 00:26:27,400 --> 00:26:31,920 a lot of other questions about what to do which are hard to answer. And in particular, 285 00:26:31,920 --> 00:26:36,720 it's possible that maybe the chain has like an off day. These L2 chains, they don't have 286 00:26:36,720 --> 00:26:41,480 their own block subsidy. So, if there's few people using them, the block, the whole block 287 00:26:41,480 --> 00:26:45,280 award will just be zero coins and the whole chain might stall out. Whereas with merge 288 00:26:45,280 --> 00:26:49,640 mining, no one would have this problem. It would just be every 10 minutes, it just finds 289 00:26:49,640 --> 00:26:54,480 all the chains. So, I think, I'm a huge proponent of merge mining. And in fact, the BIP301, 290 00:26:54,480 --> 00:26:58,680 I invented this type of merge mining called Blind Merged Mining where all the L1 miners 291 00:26:58,680 --> 00:27:03,240 have to do is include the highest paying fee following this new soft fork rules and they 292 00:27:03,240 --> 00:27:09,240 automatically merge mine all the chains without even looking at them. So, I'm very, very pro 293 00:27:09,240 --> 00:27:17,480 merge mining. I think that is a great invention. I don't know if anyone has any. It's hard 294 00:27:17,480 --> 00:27:19,400 to see with the light. Yes? 295 00:27:19,400 --> 00:27:29,160 Yeah. Well, I think this is the way you should do this. I think you should do something like, 296 00:27:29,160 --> 00:27:32,840 why is the Bitcoin community? I think this is a key point. So, there's only two minutes 297 00:27:32,840 --> 00:27:39,600 left. But this is key. This is very key. The Bitcoin community, I really think, has trapped 298 00:27:39,600 --> 00:27:45,120 itself in like a weird cultural cycle where they have a, they're very into, like they're 299 00:27:45,120 --> 00:27:51,200 very overconfident and complacent. So, the story of how this idea has gone is very long 300 00:27:51,200 --> 00:27:56,560 and it involves things like bad luck, like in 2017, the whole miner war erupted over 301 00:27:56,560 --> 00:28:01,960 the block size war and that caused everyone to hate miners for a while. And this also 302 00:28:01,960 --> 00:28:06,600 led to everyone, after the block size war was over, everyone thought that the key to 303 00:28:06,600 --> 00:28:12,520 winning was to resist change as much as possible. So, Bitcoin does not really do very much innovation 304 00:28:12,600 --> 00:28:17,560 and it also has a contempt for any kind of innovation, you know. It will say like, 305 00:28:17,560 --> 00:28:23,640 we don't need any of that, 21 million, whatever, fixes everything, blah, blah, blah. So, I 306 00:28:23,640 --> 00:28:27,720 think, but again, there has no, it has not been an activation client yet. So, I have 307 00:28:27,720 --> 00:28:33,520 like lots of, this proposal is very controversial. I have lots of big supporters and you can 308 00:28:33,520 --> 00:28:38,880 look at the LayerTwoLabs.com slash friends list and then it has some crazy enemies who are, 309 00:28:38,880 --> 00:28:42,240 and some of the enemies is just unreal like, you know, Peter Todd or whatever. We hired 310 00:28:42,280 --> 00:28:46,360 him to do this review and then he's on stage and he's saying there is no source code for 311 00:28:46,360 --> 00:28:49,960 this, but the source code with the GUI has existed for like two and a half years when 312 00:28:49,960 --> 00:28:55,720 he said that. So, he had never visited drivechain.info. He's like a critic of this idea, but he has 313 00:28:55,720 --> 00:29:00,480 never visited the website. He had no idea that code had been written at all. He never 314 00:29:00,480 --> 00:29:04,640 read the BIP. So, plenty of people admit they haven't read the BIP if you ask them. You 315 00:29:04,640 --> 00:29:08,600 know, Pierre Rochard, like famously said, he couldn't read past the first sentence of 316 00:29:08,600 --> 00:29:13,600 the BIP or he's offended by the, something like that. So, I think it's a completely irrational 317 00:29:13,600 --> 00:29:18,000 thing and you should take advantage of that, their mistake, especially since this is a 318 00:29:18,000 --> 00:29:24,680 completely reversible change that doesn't really cost very much. So, I think that's 319 00:29:24,680 --> 00:29:30,520 just about it on the time. So, thank you very much. Thank you. Thank you.