I've given this talk many times, but it's still underappreciated for what it is.

So, this is a very big idea, actually, in Bitcoin, that we want to collect every transaction fee on Earth,

and we want Bitcoin to be able to do everything that any other blockchain can do.

And this is my idea of BIP300.

My background is that I have a blog where I've written like a thousand pages about Bitcoin.

And before that, I was a statistician at Yale University Economics Department.

In December 2014, I added back a link to my blog, and that was sort of my big break, so to speak.

And this is basically the idea of what I'm trying to talk about here today,

is that what you should do is try out the software that we have already built,

because the software already exists.

You go to LayerTwoLabs.com slash download.

And then if you're interested in the software, if you like it,

you can consume some more content at drivechain.info, which is the project site.

There's tons of information there.

And then if you agree, you want 51% of hash rate to run the activated client.

So that's the idea.

And then I have some screenshots here just to give you an idea that this is real software that already exists.

This is not like some stupid PowerPoint slide where people put BitVM on it or whatever,

and then they explain that something will be built later.

This is real, and you can download it now with those test fake coins, testnet network.

So this is like, if you go to LayerTwoLabs.com slash download, you see something like this.

This is what the software looks like.

You run Bitcoin at the top, and then you run these other L2s beneath.

And this is what drivechain.info looks like, and there's an enormous amount of content here on the sidebar.

If you visit it on mobile, it's at the bottom.

So basically, let's get this.

It's very easy to run this idea, but even though it's very, very easy to run, it has extremely profound implications,

which I'm going to explain now.

So I have some endorsements, though, just to give a small idea that this isn't completely made-up nonsense,

which is that I have Adam Back, who said this on stage in front of everyone in Baltic Honey Badger in 2022.

He said Drivechains are pretty cool and arguably could have been more important or useful than Taproot,

which was the most recent Bitcoin software upgrade.

Yeah, John, the creator of Nostra, said we need Drivechain or the work of thousands in the last 13 years of being vain.

Drivechain is our only hope, so he's an even bigger shill than I am in a way.

Rene Picard, author of Mastering Lightning, the book.

He's also got this endorsement.

And then Robin Linus, inventor of BitVM, he's also a huge supporter.

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.

You should check that out. It's going to be very interesting, I'm sure.

So, OK, so what is this idea, though?

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.

For example, maybe Zcash or Ethereum or whatever, but even things like Visa or WeChat Pay.

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.

And so we won't need the altcoins or the fiat currencies.

That's the idea.

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.

And it will still be like a phone, but it will do all this other stuff.

These things that the Bitcoin network doesn't today do or can't or is not willing to do.

Or there's some kind of controversy over what to do, such as the block size dispute.

The blocks cannot be large and small at the same time.

The blocks cannot have Zcash-level privacy and be auditable at the same time.

So there's disagreements.

So basically, we're going to use the altcoin tech or just the ability to release any new piece of software.

But there's not going to be an altcoin.

There's only going to be BTC.

So the altcoin will start.

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.

But it will be Ethereum, but it will have no coin.

It will start with zero coins.

There will be no coins on it until you send coins to that from Bitcoin L1.

And so basically, the goal is you have some person who says,

Oh, Bitcoin seems great, but can it do a long list of things?

Smart contracts, DeFi, whatever.

And instead of explaining to them maybe why we don't want to do that or whatever,

we just say yes because it can do everything.

And a fringe idea, you just say, well, yeah, you go and do that in your own L2, far away from the base layer.

And so now anyone can do whatever they want on their own L2.

And in that way, we have a good fences make good neighbors type situation.

So yeah, it's kind of like lightning where you move the coins to the app.

So there's no coins when it first starts.

But when they're on there, they can do whatever they want and then they come back.

So you get unlimited planetary scale from this and you immediately get Zcash level privacy.

You just copy the Zcash altcoin software.

And again, all this software already exists.

You can download it for yourself at LayerTwoLabs.com slash downloads.

You can try it for yourself.

The L1 is just going to ignore these L2s.

The only thing that comes back is a periodic message about what is being withdrawn.

So whatever happens on these L2s, L1 will ignore it.

And that is the key because that is why the people on the L2 are allowed to do whatever they want.

So it's because that they cannot screw up L1 from L2 that they are allowed to do whatever,

Ethereum smart contracts or very large block sizes or any other thing, ring signatures, whatever Monero would be.

I have a tiny description of how this works, but I'm not sure if it will make any sense.

But this is the L1. Base layer is beneath and it has these block headers and these different blocks.

And then I have this thing. This would be BitMonero.

So this is a version of Monero that has no XMR. There's no altcoin.

And it has its own blocks and this is going from December to April.

And so basically, as I was trying to say, on L1 with BIP300, you do not actually see what's happening in here.

There's this big sheet covering all of this.

All of this activity, including the deposits and withdrawals and everything in between, is compressed into this one hash.

And that hash is the only thing inserted on L1.

So what your Layer 1 node, full node, Bitcoin core node sees is just this.

They see this little green thing go in and then they see it get paid out.

And they ignore everything that happened in between.

Which is how the whole system overall can do whatever it likes because no one is responsible for it.

This is an example of the software doing this.

You can see how this happened if you download the software.

So yeah, more relevant to miners, because I know this is put on by Marathon.

They invited me to come over and bring this up.

Miners have the ability to collect, I mean the goal would be to collect every single transaction fee on earth.

Which is that every single transaction in the world, be it a Bitcoin transaction, they all go...

Even though they happen on L2, they're all automatically piped down to L1 through something called merged mining.

That was invented by Satoshi in 2010.

And it's been in use continuously ever since.

In fact, we have merged mined Namecoin ever since 2010.

Although the amount of money is very small.

But my expectation is that in the future, well over 99% of all miner revenues will come from merged mining these chains.

So yeah, this is the idea.

BIP300 is what allows these transactions on different networks that may have different features or different block sizes.

This is what allows them to be Bitcoin transactions.

And then BIP301 is this form of merged mining that pools all of the transaction fees down to the L1 miners.

So anyone can read about this.

If you look in the BIPs repository, you can read the actual BIPs.

I have kind of maybe a visual explanation of like...

Right now we have...

This is like cryptofees.info, the website.

We have all these different chains.

But after BIP300, it's all just Bitcoin. Everything is Bitcoin.

Even though there's different networks and there's different pieces of software.

Different versions of the Bitcoin network.

And then all the fees are pooled to the L1 miners.

So this is...

BIP300 is just...

You drop...

You forget about all of Ethereum.

And now you have BitEthereum.

And then in BIP301, it just automatically takes all the L2 fees and pools them into a single L1 accounting transaction.

L1 accounting transaction that gives all that money to the L1 Bitcoin miners.

And we don't just have to copy the existing altcoins.

We can copy anything.

Even Venmo or Visa or whatever.

And I did some back of the envelope math to try to figure out exactly how many transactions there are per year.

But it's very difficult.

But I think it's at least in the trillions.

I think it could be many more.

And that would add up to...

10 cents of each of that would be hundreds of billions of dollars per year.

And actually the number grows maybe 7 or 8 percent.

It means it doubles every 9 or 10 years.

So that would be an enormous amount of money for the miners.

One of the altcoins I think we should copy that we have already copied.

And you can try out this software yourself if you ever download it.

Is that we have a fork of the latest version of Zcash.

But with no altcoin.

But it has the reusable Z address.

So you have Zk-SNARK privacy for Bitcoin.

This is vastly superior to CoinJoin in every way.

It's hard to even begin to list the reasons.

But some are that the more people using this, the more people you are in the anonymity set.

And it's just more user friendly since you only have one address that you can reuse.

So this is a good idea to copy like this.

Monero has taken over the darknet markets.

Some of them.

So we could recapture that use case with this idea.

Namecoin is a totally underappreciated idea.

Although many people have started to work on it again.

Where the Ethereum people have ENS or whatever it's called.

And the Stacks people, they have their new BTC thing.

But of course to use the Stacks thing you need the STX token.

And with this, this is just Bitcoin.

100 percent Bitcoin only.

So I think that this idea is a very good idea.

And I have written a long post.

Here it is.

I changed some bitnames.

Logins.

DNX.

Kagan.

ICANN.

If you search for this post, you can read through it.

And why I think that this is a very, very good idea.

It's really a shame that it was invented in 2010 by Satoshi himself.

Co-invented kind of.

I actually think I have it.

Yeah.

Looks like I have it somewhere.

There's some nice stuff around.

Okay.

I have a slide where Satoshi brings up.

He's co-inventing it.

Everyone should read it.

It's called BitDNS and Generalizing Bitcoin.

Where Satoshi invents this idea.

But no one has done anything with it.

Yeah.

Most of the assets, with the exception of the Ordinal's activity, which is recent.

More of the assets has been on other chains or even stuff like Tron or whatever.

But we should just recapture all that for Bitcoin only.

We want Bitcoin to be the king.

And we want everyone who wants to use.

Anyone who has any use case at all.

We want them to be a Bitcoiner.

So, yeah.

Yeah.

I'm very interested in this prediction markets topic.

It's been getting a lot more attention with Polymarket.

I actually made a Bitcoin prediction market.

L2 sidechain back in the year 2013, 2014, 2015.

Which is on my site at bitcoinhivemind.com.

So check that out if you are interested.

But I think this is very important.

So these are all things that we could do with this BIP300 idea.

And I'm trying to speed through this.

Oh, yeah.

These are just screenshots.

Well, I would like to have some questions if there's any.

Yeah.

Hey.

So would you like 30 minutes or whatever I think they said here?

Yeah.

You can just go and whatever.

Yeah.

I have tons of slides.

So I got more.

Even more.

We could even keep loading more and more slides if we want to do that.

And so on and on.

This part is not really that important though.

Because the whole point is you can just do anything you want.

So the fact that other people are doing cool things is just kind of, it's not actually that important.

Yeah.

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.

So even the people who want ossification I think should support this idea.

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.

Because that will encourage them to leave and use other software.

So then how ossified will Bitcoin be if it is abandoned by most people?

I do see it as a kind of race to some extent.

Try to get to 8 billion people, 8 billion users or die.

Because if someone else gets to 8 billion users then I don't think there's much room for a second place coin.

Yeah, I have read some slides about like how is this possible that this can work.

But I don't know if people are interested.

What I think it is best, I will go back.

I think it is best if people download the software themselves and they can try it out and see that it's real.

Go to the site.

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.

So if anyone has a question, feel free to ask.

I'll start with you.

Yes.

What is the resistance to Bitcoin?

Where do you find valid about their arguments and where do you find they don't get it?

I think the one weird thing that I did not expect is that...

So a lot of the other ideas I think are actually quite bad.

The Lightning Network in particular as we have all been suffering under this idea for so long.

And everyone is so committed to it that they cannot give up on it.

So I think this has forced everyone to reject any kind of rival idea until very recently.

Only recently has it become socially acceptable to like doubt that the Lightning Network will work.

There are arguments against this but they don't really make any sense.

So actually one of them was the slide that I was going to say at the end.

So some people think what's going on here is this is kind of cheating in a way.

Where I am pushing this.

What does it cost to run the full node of Bitcoin Core?

And then there's all these other L2s which can be an unlimited cost.

But the thing is those are all optional.

So you only run those if you're interested in doing that.

So in a block size war, you know, people like Roger Ver or the other large blockers.

They wanted to run software that processed larger blocks but other people did not.

And in this idea, not everyone has to do the same thing.

So people can just run whatever they want.

And so in a way I'm kind of pushing the problem only on the people who want to run it.

And this is very counterintuitive because people just think either nothing is happening at all.

Or that people are being forced to do something that they don't want to do.

But neither of those things are true.

This is just people being confused.

And I think if they run the software, they will figure out what is actually happening.

A weird thing is that some people do critique.

This critique makes no sense and it is almost a waste of time to repeat it.

But there is a critique from very smart people who they think that for some reason

the fact that the miners can make a lot of money doing this is bad.

And they think it will pressure the miners into like running this software.

That really doesn't make any sense because the software is free, open source software.

And if the miners don't want to run it, they can just stop running it at any time.

And the miners already live in this extremely competitive world

where they must do a whole list of things just to be economically viable.

So there is really nothing different about this than anything like using the waste heat to...

If you are a miner and you use waste heat to dry fruit or something or heat a swimming pool,

this is a very similar thing where you are just running Bitcoin Core

and then you also run more software that prints money for you, collects transaction fees.

So I think people just don't understand this idea.

One other thing that happened was that Blockstream went public with the sidechain word,

but they used it to describe a multisig federation controlled by them

where they collect all the transaction fees for themselves.

And as a result, I think everyone is very confused about what the word sidechain originally meant

and so it created a lot of confusion overall, unfortunately.

Any more questions?

Yeah, if anyone has a question, please ask a question.

I rushed through the thing so that there would be some time, I think.

No, you don't have a question?

Yeah, this is a bizarre thing.

But yeah, again, I have a list of endorsements at LayerTwoLabs.com also.

And I had those three at the beginning to try to get people like,

this is actually not a completely made up thing.

This is very real.

Question for you.

Yes.

So I'm still struggling to understand this a little bit,

but just hypothetically, let's say one of these sidechains becomes massively successful

and it's super huge and everybody is using it in different ways.

Maybe you could describe how you would implement it against a Bitcoin sidechain.

No, I don't think so at all.

The question was, what if a sidechain becomes very, very popular?

Much more so than the L1.

First of all, I think the analogous case would be,

what if some kind of altcoin becomes much more popular than BTC?

I think that would be very threatening to Bitcoin's store of value

because everyone would be around using this other thing

and that may also have fixed supply or something that's close enough

where a lot of people don't care.

So maybe that new thing would have,

we would actually be getting nervous, I think, in that case

because I do think there's only room for one project.

But the way this project is designed,

there is nothing that the L2 can do that will change what is happening on L1.

So maybe things may happen with how things are perceived by humans

and certainly what would happen would be

the miners' attention and loyalty,

it would be divided somewhat proportionally.

They would say, well, this is really our bread and butter over here.

However, even though in a relative sense that would change,

in an absolute sense it would not change.

Whatever the Bitcoin L1 is producing in transaction fees,

that is how much everyone cares about, the miners care about L1.

So they care some absolute amount.

And the fact that on the side they get some other huge thing,

that doesn't quite make as much of a difference

because in fact it's actually a good thing

since all the L2 transactions are Bitcoin transactions.

The miners are less likely to be distracted by some other thing

like if there's government licensing

or some other person is trying to bribe them

or give them some kind of tax break or something.

They are more likely to just ignore that.

Because they'll just say, we're making so much money,

enormous amounts of money.

I think that's the best way to keep the miners loyal to the Bitcoin,

the 21 million Bitcoins.

I think it's a very good thing and to be expected.

I do think in the future most of the economic activity

will be on these L2 sidechains.

So it's just not possible to get the L1.

The L1 blocks are very small.

And when the fees are high, people get annoyed

and the user experience is terrible.

So people just stop.

This happens all the time where the price is going up

and then people call me.

They say, oh, I know you're into Bitcoin.

But then the fees are $20 or $30.

So you try to onboard them to Bitcoin.

But it's just so hopelessly awkward

because the fees at that moment in time are so high.

And the fees come back down.

But that's also when the bubble...

It's something where there's an endless bubble

of just onboarding more and more people geometrically.

And so L1 is just not configured for that.

And we don't need L1 to be configured for that

because we can have all the benefits on these L2s

that are optional and we can even sacrifice the L2s.

So the L2s will be more of this high turnover, low...

There will probably be fewer coins.

There may only be like 100,000, 150,000 coins on all of them,

but the turnover could be 500 times that of L1

or even like 10,000 times.

It could be very different.

So it's like the cash you have in your wallet,

it might turn over a lot,

and you have a savings account that you don't touch,

something like that.

Yes, so that was a great question.

So if anyone has any other questions, there's a microphone.

Yes, it's okay. Don't be shy.

I have a question about Drivechains, sidechains.

I'll throw one out there.

What are the...

I don't know if you can slightly...

What are the challenges, like the lack of liquidity

and having to lock in channels?

Could you do that in a sidechain?

Yes, you can, and it would be better.

I have written two blog posts.

One is called

Lightning Network Fundamental Limitations,

and the other one is called The Ellen Black Bell.

The Ellen Black Bell just has a list of quotes from people.

Because I'm a very technical person,

and many of my friends are into lightning,

but the people who are technical people who work on lightning,

they have said many things publicly,

and I've just collected them all in one place.

So there's the details,

and then there's just the overall vibe,

for lack of a better word,

which is like...

People don't act as though they're really, really proud of it,

and they want everyone to investigate the details.

They're not bringing everyone in to explain it easier and easier,

and getting more people to actually use it.

People just kind of are excited about it,

and then they collect the salary as an engineer,

and then they just kind of hope people ask a few questions,

but not too many.

That is the vibe of the lightning network, unfortunately.

And you can look at some other things,

like numbers on how many coins are in the lightning network,

which is less than 5,000.

That is hundredths of a percent,

so it's just not very much.

I just think it's not...

It's more and more popular among the open source devs to just say,

what's the next thing going to be?

People are talking about covenants.

People are trying to talk about the next thing,

because they just want to quietly kind of forget about it.

More to that question,

I think every L2 that does not pass all the fees down to the L1 miners

will eventually have a problem if it is successful.

So maybe it will fail, and no one will care.

But if it is successful,

then the miners will be looking over,

and they'll say, these people are making a hundred billion,

a hundred billion dollars a year,

but we're not, because we only get the L1 amount.

And so then the miners will think,

oh, maybe we should either vertically integrate,

and just do, we'll do our own,

like marathon lightning or whatever,

marathon LSP or whatever you want to call it,

or foundry, right?

More likely like foundry LSP.

So let's see, like foundry LSP or the foundry arc supernode.

People either do that,

or they will just attack and destroy that L2.

They'll say, we don't want that,

because we want something that gives us the money.

So I do think anything that doesn't pass those fees down

is probably not viable.

That's enough.

Given that Enduro is a multiplex,

that is a multiplex.

You know, you might want to think of it

as kind of a halfway point

to your ultimate vision for Drivechains.

Also, do you like the scene

of the myriad of things

that we've created

for the Drivechain platform

in the main time.

We've already done one.

Yeah, but you guys won't do it.

The Zcash sidechain is the most cypherpunk.

It's the most legit.

You guys are not going to touch that one.

See, that's why.

But, yeah, well, we are...

You do the prediction market one or two also.

I've got lots of stuff that I've written for free,

as you know.

Fully open source.

Hopefully those will come soon to the Enduro platform.

Is that right?

Yeah, of course, yeah.

Okay, great, yes.

Okay, well, thank you very much.

Okay, cool.

I'll see you again at 3 o'clock here on the stage.

I'll be back at 3 with Robin Linus,

the genius inventor of BitVM.

Thank you.

Robin Linus.