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Hello and welcome to Drivechain Twitter Spaces. I'm Henry at LayerTwo Labs. Today is a special

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Drivechain Spaces because we just had the conference in Miami. LayerTwo Labs, our team was

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there. We had a great booth. It was a perfect location right near the main entrance to the

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great hall where all the speakers were. We had one of the larger booths with a bunch of pinatas

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with altcoin logos on them. We had visitors to our booth smash the pinatas, destroying

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the altcoins metaphorically. That's what Drivechain can do. By design, Drivechain allows

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the Bitcoin community to copy the technology of altcoins into Bitcoin sidechains where the native

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token of each sidechain is a synthetic Bitcoin that can only be created by locking actual main

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chain Bitcoin in a two-way peg called a hashrate escrow. In other words, a sidechain can be a

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blockchain with no native token other than Bitcoin. In this way, all demand for the sidechain

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accrues value to Bitcoin. For example, if there were a privacy sidechain where all of the privacy

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focused blockchain users at the Monero and Zcash community, if they were to migrate to Bitcoin

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sidechains, that would increase the value of Bitcoin. And because Drivechain leverages

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Satoshi's merged mining technology, all the transaction fees, approximately all of them,

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are paid to main chain Bitcoin miners and they don't have to do anything extra. Running the node

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of the sidechain is optional because Drivechain improves upon Satoshi's merged mining. Drivechain

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BIP301 eliminates the need for the miner to necessarily run the node of the sidechain

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and still a miner collects the sidechain fees. This ingenious design results in the

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miner being paid in Bitcoin for the transaction fees on the sidechain, whereas in ordinary

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merged mining, as Satoshi designed it, the Bitcoin miner has to run the node of the sidechain

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and then would be paid in an altcoin. So today, for example, if you're merged mining Litecoin

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and Dogecoin with script miners, you would be paid in two different coins, Litecoin and Dogecoin.

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But with the Drivechain design, it's Bitcoin only.

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Drivechain is the most Bitcoin only idea in all of Bitcoin.

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Drivechain is the idea that every single blockchain application, whether it's for gambling

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and entertainment like NFTs or other things, or whether it's for something that has clear utility

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and objective use value like privacy coins or large block sidechains on Bitcoin,

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Drivechain aims to have every good application on blockchain be built on Bitcoin in a manner that is

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harmonious with Bitcoin economically. In other words, we want every single person in the whole

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world, whoever wants to build or use anything on a blockchain, to do it on Bitcoin in a manner

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that increases Bitcoin's value. In other words, increasing the purchasing power of Bitcoin,

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sending it up. Drivechain is number go up technology, we believe. We believe it's number

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go up technology because imagine if all the building on all the blockchains were done instead

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on Bitcoin and its sidechains, Bitcoin's price would be a multiple of what it is today. And

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the total amount of transaction fees paid to Bitcoin miners would be much higher than it is

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today. Today, about 1 10th to 1 20th of all the transaction fees that are paid to Bitcoin miners

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is only like, let me rephrase that. Today, all of the transaction fees that are paid to all the

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blockchains in the whole world is about 10 or 20 times the amount of transaction fees that are paid

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to Bitcoin miners. In other words, Bitcoin miners are getting only a fraction of the revenue they

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could be getting. And if Drivechain is adopted on Bitcoin and is very successful, and all of

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the economic activity migrates to Bitcoin from these altcoins, the amount of fees that would be

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received by Bitcoin miners would be much higher, it would be 10 times higher or more. Because

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there are so many fees being paid on other blockchains. And that's not good. It's not

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good for Bitcoin in terms of its network effects, and its narrative of monetization.

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To have so much economic activity flowing to independent blockchains from Bitcoin,

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blockchains that are not economically aligned or linked with Bitcoin. It's not helpful. In fact,

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it threatens Bitcoin. Because it causes the public to wonder whether Bitcoin will maintain

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its market cap crown. It causes the public to wonder whether Bitcoin will maintain its leadership

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in the competition to become the world's leading and only peer-to-peer electronic cash system.

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We don't want another peer-to-peer electronic cash system gaining network effect. Instead,

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we want Bitcoin to have no competition. We want Bitcoin to be the only layer one in existence.

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And the only way that's possible, we believe, is if Drivechain or something similar is adopted.

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Because Drivechain or something similar would enable Bitcoin to be a platform where every

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good technology on a blockchain can be built on Bitcoin. And then no one has to buy an altcoin

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to get any kind of functionality. Right now, if you wanted to use Monero in order to participate

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in certain markets that only accept Monero, you would have to buy Monero. But imagine

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if all the Monero users in the whole world migrated to a Bitcoin sidechain that is a clone

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of the Monero technology, a clone of the code of Monero. We literally copy-paste the code

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into a Bitcoin sidechain. And then the only way to get a token on that sidechain is to

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send an actual Bitcoin into the hashrate escrow. That's the two-way peg created by BIP300.

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And then all the users would flow over from the altcoin. So we would absorb the users of Monero.

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We would bring them home. And I think that would be a triumph of the Bitcoin community,

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is if it were able to successfully reabsorb the users, the value, the fees and the

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cypherpunk narratives that have left Bitcoin ever since the privacy altcoin communities arose,

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when it was detected that advanced technology for privacy wasn't being made available on Bitcoin.

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Bitcoin has coin joins and other privacy tools. However, the most extreme and experimental

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privacy technology exists only outside of Bitcoin. Adam Back, the head of Blockstream,

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has written about this in a tweet, where he tweeted about Zcash. And he commended Paul Sztorc

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for developing a Zcash sidechain in the drivechain testnet. And Adam tweeted,

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this was only a few months ago, it's easy to find. He tweeted that, in fact, let me find the exact,

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let's find the exact tweet. That way we can quote it accurately.

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So what we're going to do is we're going to go on our laptops to

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a certain website, which is www.drivechain.info.com forward slash friends.

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Let's go there. Let's read that again.

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We go to www.drivechain.info forward slash friends. F-R-I-E-N-D-S. And that'll take you

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to a Google Sheet that I personally made. This is Henry at LayerTwo Labs.

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So this is a list of notable Bitcoiners. You know, in my opinion, people who are noted in the Bitcoin

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community, like, for example, Mike Tidwell, who I had dinner with this last week at the conference

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in Miami. And at the top of the list is Adam Back, probably the biggest name in all of Bitcoin,

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because his name is literally the only name in the body of the white paper. All of the

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other names are in the end notes or at the very beginning, when it says Hrishinarty.

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All of the other names are in the end notes or at the very beginning with Satoshi Nakamoto.

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But in the body of the white paper, Nakamoto mentions Adam Back.

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So that's because Nakamoto wanted to give a lot of credit to Dr. Back's discoveries and inventions

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with respect to like hash cash and related matters that helped Satoshi cobble together

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the various technologies that led to Bitcoin. So here you see in the spreadsheet that we're

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looking at on row 9 at drivechain.info forward slash friends. He writes,

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truth coin that's Paul Sztorc truth coin made a testnet Bitcoin sidechain drivechain

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with Zcash crypto for a reason I wouldn't buy the altcoin but I would try and use the

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drivechain

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version. Zcash protocol is a bit risky, R &D risky for Bitcoin mainchain due to

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reliance on recent experimental cryptography.

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This is a perfect tweet.

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What Dr. is saying in this tweet

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is that it is great that drivechain enables Bitcoiners to experiment with Zcash technology

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without selling their Bitcoin. So he is saying here that it would be great for him to be able

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to try Zcash tech on a Bitcoin sidechain. That is the goal of drivechain. It is about innovation

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and experimentation with advanced technology, things like large blocks, things like Zcash privacy

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tech, things like Hivemind peer-to-peer Oracle network, things like DNS on blockchain, and many

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others. All kinds of ideas and experiments need to be run on Bitcoin sidechains or something similar

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so that Bitcoin can innovate according to the demands of people around the world instead of

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them developing altcoins and experimenting and creating value and bootstrapping economic flow

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on altcoins, which threatens Bitcoin's network effects. We need Bitcoin to be bigger, faster,

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larger. We need it to grow as fast as possible to all the users in the world, as fast as possible.

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We want to diminish and eliminate the competition from altcoins, and we want to have Bitcoin be the

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place that everyone is experimenting and developing valuable technology in a way that pays fees to

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Bitcoin miners so that Bitcoin can have a high fee revenue to miners in the future.

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Welcome to the stage, Bubakar, from West Africa.

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Thanks for coming. I'm letting you up to the stage, and it's connecting. I hope that works.

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Thanks to all who've joined. This is Drivechain Twitter Spaces, hosted by LayerTwo Labs.

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Hosted by LayerTwo Labs. We run this Twitter Space every Monday and Thursday.

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It seems like there's some trouble with the connection, Bubakar. I'm not sure if you'll

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be able to speak, so maybe try reconnecting. Oh, there it is. Can you hear me? Go ahead with your

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question or comment if you'd like to. I hope everyone's having a great day. If you were at

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the Bitcoin Miami conference, I hope you had a great time and a safe and restful return home.

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I had a great time. It was my first conference ever for Bitcoin, or really any kind of conference.

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I think there were over 10,000 people there, if I read that correctly.

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And we had a ton of people visiting the LayerTwo Labs booth. We had Adam Back stop by. We had

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Luke Dashjr. stop by. We had Mike Tidwell. There were Aaron Van Weerdam. We had all sorts of

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outstanding Bitcoiners visit us and talk about how much enthusiasm and interest they have in

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drivechain and how interest in drivechain is at an all-time high. It is imperative that Bitcoin

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embrace experimentation, innovation, and technology. And we need to stop the bad narratives

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of toxicity and dismissing the innovation and technology of altcoins. This is a

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very destructive and dangerous ideology in which some Bitcoiners advocate for thinking that there

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is never going to be anything valuable technologically that is introduced by altcoins.

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And therefore, it is okay that Bitcoin doesn't have successful sidechains. It doesn't have

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successful blockchains built on top of it. Some people think Bitcoin is fine as it is today.

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And with its current narratives and technology, it can scale globally.

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They're wrong. Bitcoin needs large block sidechains or something similar in order that

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users, billions of people, can self-custody Bitcoin. Otherwise, Bitcoin will scale like gold,

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where gold used trusted solutions for scaling, paper gold, and that led

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eventually to the failure of gold as money. So I'm excited about large block thunder sidechains

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with one gigabyte blocks. It starts out at eight megabytes and it scales over five years

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to one gigabyte so that billions of people can use the sidechains. And I'm also excited about

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Hivemind, like Fiatjaf, the creator of Nostr, who is an emphatic supporter of drivechain

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and has written an essay, multiple essays, on drivechain and why it's great and necessary.

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He's excited about Hivemind. He has written that he's excited. He has tweeted that he's really

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excited to see Hivemind and that Hivemind alone is a justification for drivechain in his view.

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Hivemind is Paul Sztorc's idea for a peer-to-peer Bitcoin sidechain that provides

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peer-to-peer oracles, enabling everyone in the world to make bets with each other about the

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future. And this could alter society by enabling society to crystallize the information available

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throughout society in a manner that results in economic clarity, in terms of like people

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putting billions of dollars of bets on what will happen in the future. That can help us

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understand the future because it helps illuminate who knows what and how well they know it. So it

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enhances, it's a coordination among people to create insight into what the future holds.

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This is called futarchy. It's a very innovative philosophy having to do with economics and

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commerce and prediction markets. We have a request for speaking. Hello, the enlightened one.

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Coming up to the stage and share your thoughts.

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Do you have a question or comment?

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Enlightened one.

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All right, we have another person who wants to speak. Sarah Nakamoto.

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Welcome to the stage, Sarah.

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Hi, Sarah. Can you hear me?

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Yeah, I can hear you fine.

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Okay, cool. Welcome. What's your question?

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Well, I just joined the spaces here, but I'm working on a project that we're going to need an

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escrow contract. And I'm a contractor also, so I would love to be able to use an escrow contract

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for my business. There seems to be this prevalent trend in the building industry where

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I put my invoice in at the end of the month and then the project owner holds 5% of that back.

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Basically, they don't pay their whole bill, they hold it back.

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Sarah, do you have a question about drivechain?

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Well, yeah. Is it possible to deploy this escrow contract on drivechain?

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Yeah. Thank you for your question. That's a great question.

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The drivechain code enables peer-to-peer sidechains. And one of the drivechains,

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sidechains, that will be perhaps most successful if the value of altcoins is any guide,

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is the Ethereum clone called EthSide. Alternatively, perhaps Rootstock would serve

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as the Ethereum clone on drivechain. So Ethereum, Rootstock is one of the largest

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and most successful Bitcoin sidechains today.

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Right now, every Bitcoin sidechain uses a 15-party multisig federation or something similar.

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In other words, it uses a trusted, not peer-to-peer security model.

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And on the sidechain for smart contracts, whether it's EthSide or Rootstock, once they're

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both drivechains, then sophisticated smart contracts for invoices and escrow and all

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sorts of things would be possible.

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So the answer is yes, all kinds of innovative commercial activity would happen on Bitcoin

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sidechains. And it's currently being built on Ethereum.

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But we want to move that over to Bitcoin.

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We want to move all of the value of Ethereum into Bitcoin, all of the fees, all of the

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ideas, all of the building, all of the community, all of the money.

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And so that Ethereum doesn't have this growing threat towards Bitcoin.

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Because if Ethereum were to be bigger than Bitcoin in the future, have a bigger network

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effect and more extensibility, more ability to platform ideas on layers above the main

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chain, then if Ethereum also were to ossify its main chain, that set of events might

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threaten Bitcoin in terms of Bitcoin's momentum, narratives and network effect.

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We want Bitcoin to be the biggest community in all of blockchain and we want it to have

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every technology possible.

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We want to copy Ethereum, Zcash, Monero, all of the altcoins that have any potential

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value should be should be copied into Bitcoin sidechains.

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And then Bitcoiners using Bitcoin can use the technology and maybe, maybe the users of

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the altcoins will switch from their altcoin to the Bitcoin sidechain in order that they

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get the same tech, but with the Bitcoin unit of account.

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So to me, Drivechain is all about using the technology that was created on an altcoin

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and using Bitcoin's monetary policy.

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So that's the problem with Zcash right now.

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When you're using Zcash, you're holding a token that doesn't have Bitcoin's monetary

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policy. You don't get that 21 million hard cap assurance when you're using Zcash or

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Monero. Monero, for example, has inflation and, you know, tail issuance, as Peter Todd

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calls it. By the way, the whole tail issuance phrase, it is so reminiscent of the

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Federal Reserve's Orwellian terminology, such as quantitative easing.

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There's all these fancy terms, all these fancy terms that the government uses to refer

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to money printing.

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And I don't like that the Bitcoiners who want inflation call it tail issuance, tail

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issuance. It sounds like there's a dog wagging its tail and, you know, issuance of

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something like, why don't they just call it inflation?

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I feel that people use terms that are euphemisms and that is not the honest way of

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talking about it, in my opinion.

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We should not use the word tail issuance.

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We should just call it inflation.

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Permanent inflation, ongoing, endless inflation.

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That's what tail issuance means.

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We don't want that. We want the Zcash technology without the inflation, without the

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developer tax, without all the unnecessary stuff that Zcash decided to do.

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So instead of all that messy, unnecessary monetary printing that's going on in Zcash

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and Monero, instead, let's copy the technology for privacy, just the technology into a

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Bitcoin sidechain. And then, because there's no tokens on the sidechain, none, until

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Bitcoiners send their Bitcoin through the two-way peg, locking up Bitcoin, that allows

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the release of the tokens on the sidechain.

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And then when a user is finished using the sidechain, he can send his tokens back to

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the two-way peg that burns the token on the sidechain, releasing Bitcoin on the main

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chain to the user. In other words, Drivechain is all about Bitcoin's monetary policy,

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but bringing in the technology of the altcoins, as well as the technology that's never

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been on altcoins, but that Bitcoiners want to create.

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There's technology Bitcoiner builders, people like SuperTestNet, who is an advocate for

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Drivechain. He's a strong advocate for Drivechain, and I was lucky to have conversations

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with him last week, just a couple of days ago, on the beach in Miami at the conference.

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He's an advocate for Drivechain.

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He builds complicated, amazing technologies on Bitcoin, and he wants to be able to, with

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others, build interesting things and see what happens if Drivechain is adopted.

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It's my belief, when I talk to Bitcoiners who understand Drivechain, that people who

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build things and who have a vision for the future being different than it is today, they

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tend to like Drivechain.

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And there is a camp within the Bitcoin community that doesn't quite get what Drivechain is

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all about, because they've swallowed all these ideas about Bitcoin being perfect and

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these bad ideas, like how it's impossible for any altcoin to ever have any good

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technology. Those are clearly wrong ideas.

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So I think there needs to be a renaissance in the Bitcoin discourse where people recognize

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there are good things that have been built on altcoins.

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Those things, like Zcash and Monero, right now cannot be built on Bitcoin in a peer-to-peer

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manner. There's no way to have a peer-to-peer implementation of Zcash and Monero

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privacy technology on Bitcoin today.

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The next best thing is a federated sidechain like Liquid that would offer confidential

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transactions using technology similar to what's found in Monero.

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However, if you want it to be peer-to-peer, then you can't use Liquid because Liquid is not

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peer-to-peer. There are people who are selected, socially selected, to participate in the

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multisig that controls the 70 million dollars that's held in Liquid or whatever it is.

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All the Bitcoin held there, it's worth, I think, almost 100 million dollars.

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But there's a federated sidechain there.

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It's a federated sidechain.

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It's not peer-to-peer.

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What we want as drivechainers is peer-to-peer sidechains, not 15 people being selected.

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And also, if it were a thousand people who are selected, that wouldn't be categorically

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different. A thousand people in a multisig is not peer-to-peer.

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What's necessary for something to be peer-to-peer is for no one to be socially selected

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into any role.

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That's what Satoshi meant when he wrote peer-to-peer electronic cash.

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Peer-to-peer is the essence of Bitcoin.

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And peer-to-peer is an attribute of Bitcoin's mainchain.

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And if drivechain is ever adopted on Bitcoin, then Bitcoin's sidechains will be

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peer-to-peer instead of having federations where individuals and organizations are

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socially selected to be privileged to participate in a multisig that controls the

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security of the Bitcoin sent to the sidechain.

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So what we need is peer-to-peer sidechains on Bitcoin and no one has to use it.

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It's opt-in.

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Drivechain is optional.

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No one has to use it.

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It's like lightning.

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And lightning needed a soft fork.

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Similarly, that was SegWit.

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Similarly, drivechain needs a soft fork.

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The soft fork is Bitcoin Improvement Proposal 300 and 301.

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The introduction of two opcodes to Bitcoin, the creation of hash rate escrow and blind

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merge mining. And if you don't like those things, you never have to use them.

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It's like Bitcoin itself.

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If you don't like Bitcoin, you don't have to use it.

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Some people don't like Bitcoin.

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Some people don't like the idea of using a sidechain.

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Some people don't like lightning.

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All these things should be optional.

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But for people who really believe in Bitcoin and want it to succeed, who want it to grow

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all over the world, who want 8 billion people to be using Bitcoin, it's essential that

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Bitcoin be the dominant and ideally the only layer one blockchain in existence.

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And in order to ensure, we want to ensure that Bitcoin has every advantage.

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And to ensure Bitcoin has every advantage, it is essential that all of the technology

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that is being built in altcoins can be copied into Bitcoin sidechains.

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So once again, you might ask, what are the sidechains that drivechain would allow?

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Well, there could be hundreds of them or thousands.

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In different ways, that is possible.

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And for starters, it's worth noting that the drivechain inventors, Paul Sztorc and

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Cryptex, they think that probably at the beginning, in the first maybe five or 10

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years, we would see perhaps 10 or 20 at most sidechains.

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And some of the most obvious examples of them would be a large block sidechain.

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That is a clone of Bitcoin that uses large blocks.

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And the design of this sidechain would include first starting out at like eight

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megabytes, I think, and then it would scale to one gigabyte per block.

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No one has to use it.

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It would be totally opt in.

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But Adam Back has talked very favorably about this.

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He tweeted this year to Roger Ver, who led the split, you know, of the Bitcoin large

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block community out of Bitcoin to do their altcoins, which are Bitcoin Cash and BSV.

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He said to Roger in a tweet, and I'll read it from my handy list that I made at

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drivechain.info forward slash friends.

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That's drivechain.info forward slash friends.

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If you go there, you'll see a Google sheet that I made.

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I'm Henry at LayerTwo Labs, and I made this list of all these tweets from like 60

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different people like Adam Back, Fiatjaf, Ruben Samson, Mike Tidwell, Hampus, who's

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in our audience here.

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Well-known Bitcoiners like that who have a lot of technical knowledge.

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And so what Adam Back said is to Roger Ver, he said, better still, Bitcoin adds a

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drivechain, as I suggested to you in person a few times pre-forks.

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You even sponsored some R&D on drivechains back then.

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If you had worked on win-win large block drivechains, there would be there would have

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been less drama and you'd have more Bitcoin also.

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So Dr.

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Back there is having some fun.

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Suggesting that Roger has lost a lot of money, which I think might be I mean, I have no

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idea if that's if that's the details of Roger Ver's personal net worth.

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I have no idea. But I think he famously had hundreds of thousands of Bitcoin at one

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point, and I'm not sure if he spent them or sold them.

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But the key here is what Adam Back says when he says the phrase win-win large block

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drivechains. Let's explore what he meant there.

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What did he mean by win-win?

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What is the win-win dynamic of a large block drivechain?

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Well, here it is. Everyone who wants to use Bitcoin but doesn't want to pay a high fee.

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Can if they want to, if drivechain were enabled, they could opt in to the sidechain that

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has Bitcoin's code, except large blocks.

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And the only way to get any tokens on that sidechain would be to send them through the

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two way peg. So let's say I'm a Bitcoiner.

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I send my my Bitcoin to the two way peg and now it's my Bitcoin is locked there in the

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hashrate escrow and a token is released into the sidechain.

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So it's minted.

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But because one Bitcoin has been taken out of circulation and is held in the hashrate

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escrow. The creation of the sidechain token does not create inflation.

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And when I'm done using the sidechain token, I send it to the hashrate escrow that burns

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the token and releases actual mainchain Bitcoin.

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So drivechain is all about the relationship between the mainchain and the sidechain.

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So what we all call Bitcoin today would be called mainchain Bitcoin in the drivechain

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era. People would refer to that as like layer one Bitcoin and the sidechain is layer two.

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And the beautiful insight of drivechain is that the total number of Bitcoin across all

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of the sidechains and the mainchain is never more than 21 million, because the only way

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to create the synthetic Bitcoin on the sidechains is by locking up actual Bitcoin on

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layer one. So drivechain is.

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A mission to make Bitcoin's monetary policy, the monetary policy for every blockchain in

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existence, drivechain is a mission to make all of the altcoin blockchains tokens devalue

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to zero as the users flow to the Bitcoin sidechains that are the respective clones of the

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altcoins. For example, with Zcash, that might be the first community that reacts to

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drivechain in the altcoin world.

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That's my personal outlook, that as soon as drivechain is launched, we'll see the Zcash

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users sell their altcoin in order to buy Bitcoin, in order to send it through the two

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peg and use the Bitcoin, the synthetic Bitcoin token on the zSide sidechain.

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It's called zSide.

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That's the sidechain using Zcash tech.

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It already exists in the drivechain testnet.

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And you might ask, well, Henry, why?

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Why the fuck would the Zcash altcoin community want to come over to Bitcoin?

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Like, why would they do that?

355
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Why would they just stay using Zcash?

356
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Maybe they're happy with their altcoin.

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Well, here's why they would move over.

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I'll tell you why. If 1%, just 1% of all Bitcoiners were to send their Bitcoin into the

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Zcash sidechain, what we would have is $4 billion of Bitcoin on that sidechain.

360
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Zcash, last time I checked, is only like $1 billion.

361
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So we'd have a sidechain with four times the value.

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So the Zcash enthusiasts in the altcoin land would look at their community and say, hmm, we

363
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have Zcash, but Bitcoin's community has copied the code.

364
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They've stripped out.

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They've stripped out the developer tax that, you know, Zucoup, whatever, like the Zcash

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community has some kind of like tax built into the blockchain that taxes the users and then

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pays for development.

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But that's been stripped out from the version that's been built on GitHub by the Layer 2

369
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Labs, you know, members and enthusiasts.

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So the planned drivechain doesn't include the developer tax.

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And what it does is if 1% of Bitcoiners send their Bitcoin to that sidechain, there would be

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four times the value in that sidechain versus the $1 billion in the altcoin.

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And the $4 billion of use of value in the Bitcoin sidechain using Zcash technology would

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generate a lot of transaction fees, presumably.

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The people are the Bitcoiners there are moving their Bitcoin around on the sidechain,

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generating transaction fees, securing that sidechain.

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Because the fees of each drivechain sidechain constitute the economic security of that

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drivechain sidechain.

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There is no Coinbase inflation subsidy component in the miner revenue with respect to the

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sidechain. So the fees are important, but once the Zcash sidechain bootstraps security and

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usage from Bitcoiners alone, then the amount of security and value and usage and privacy on

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the sidechain would be greater than that in Zcash in the altcoin.

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In other words, Bitcoin has this massive community.

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If we copy an altcoin like Zcash into a sidechain using drivechain technology, if we

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copy it over, pretty soon it's very possible that the Bitcoin sidechain will be much bigger

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and stronger and better in every single way than the altcoin, because the altcoin Zcash is

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pretty small. So as I said, if just 1% of Bitcoiners send Bitcoin to the Zcash sidechain,

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the sidechain is better in every way than the altcoin.

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That altcoin Zcash, it has cool privacy tech, but when you're when you're holding the Zcash

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token, that Zcash token fluctuates in value.

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Those users would probably almost certainly prefer the stability of value of Bitcoin's token.

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Bitcoin has more purchasing power stability than probably any token.

393
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All of the altcoins fluctuate in value a lot compared to the stability of Bitcoin.

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Now, of course, Bitcoin, you know, it's volatile, too.

395
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But more often than not, volatile in a beneficial direction upwards.

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So what we want is for these Zcash users to look and think rationally, hmm, should I

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continue holding my Zcash token or should I sell my Zcash token before everyone else?

398
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And I should get out and buy Bitcoin and use Bitcoin on the Bitcoin sidechain that offers the

399
00:39:29,003 --> 00:39:33,884
same tech with a larger mixing pool because there's more Bitcoiners, there's more value,

400
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there's more fees presumably on the drivechain sidechain than in the Zcash altcoin.

401
00:39:40,523 --> 00:39:46,884
The Zcash altcoin is small and flimsy economically compared to a four billion dollar

402
00:39:47,244 --> 00:39:50,564
drivechain sidechain using Zcash tech.

403
00:39:50,964 --> 00:39:55,804
So they're all going to move over and the only person left standing will be the

404
00:39:55,804 --> 00:39:58,444
loyalists and the founders and investors.

405
00:39:59,137 --> 00:40:05,698
See, that's what drivechain, that's the inside of drivechain is that altcoins, there's different kinds of people using them.

406
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There are founders, there are investors and there are users.

407
00:40:12,058 --> 00:40:21,018
And those who are actually using Zcash and Monero for their privacy tech, as opposed to those who hold the token just for the appreciation potential,

408
00:40:21,018 --> 00:40:30,298
will move over. So the people who really use the tech and don't care which blockchain they're on, they just want maximum privacy.

409
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That is exactly the kind of person who will move to the better blockchain that has the same code, the same privacy tech, but the stable purchasing power of Bitcoin.

410
00:40:41,576 --> 00:40:49,898
So as I've explained to you now, there is literally a profit motive because currency fluctuation is a cost users bear.

411
00:40:50,338 --> 00:40:52,338
People want the most stable money.

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00:40:53,096 --> 00:40:57,818
So a Zcash user wants high privacy, but he also wants stable money.

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So the best thing possible for a Zcash person, the best thing possible for a privacy enthusiast is to have the privacy tech of Zcash or Monero with the economic stability of a Bitcoin unit of account.

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00:41:15,218 --> 00:41:29,376
So if you're a super privacy oriented person, you're a hyper cypherpunk, you're living in your bunker, you're underground, you've got all your hydroponic plants and you've got your guns and your nuclear missile silo.

415
00:41:29,618 --> 00:41:33,137
But every day you wake up and you struggle.

416
00:41:33,137 --> 00:41:38,696
Hmm. I want the stability of Bitcoin's unit of account, but I want the privacy of Zcash.

417
00:41:38,858 --> 00:41:41,016
Well, with drivechain, you get both.

418
00:41:41,376 --> 00:41:47,416
You get the technology of the altcoin, but you get Bitcoin's monetary policy, Bitcoin's unit of account.

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00:41:48,736 --> 00:41:56,978
So the users on the Zcash community who really value the privacy will come to the Bitcoin sidechain and they will dump their altcoin.

420
00:41:57,336 --> 00:42:09,258
Drivechain will send the value of some or all altcoins eventually to zero and Bitcoin will be the only blockchain layer one in existence.

421
00:42:09,978 --> 00:42:19,258
And then hyper Bitcoinization will happen much faster because the whole world will be using Bitcoin instead of these unnecessary and.

422
00:42:21,096 --> 00:42:35,456
Confounding issues of of competition among altcoins where they're all trying to flip Bitcoin, especially Ethereum, it's not good, it would be much better for Bitcoin if first with drivechain Bitcoin can absorb.

423
00:42:36,456 --> 00:42:57,698
The privacy altcoin community back to Bitcoin that will send the altcoin to zero Monero and Zcash and bring all those users to Bitcoin, sending Bitcoin prices up the value of Bitcoin token up as well as the fees because that because of merged mining, the fees on all of these privacy sidechains would be paid to Bitcoin miners.

424
00:42:57,856 --> 00:43:12,258
So Bitcoin gets higher fees for miners, which is essential for solving Bitcoin's long term fee reliant security budget problem where Bitcoin has these fee spikes and then the fees drop down to drop down to close to the minimum.

425
00:43:12,258 --> 00:43:29,338
And if that keeps on happening far in the future, after more halvings of the coinbase, there won't be much income for miners and then Bitcoin won't be robustly secured economically against hostile miners such as a terrorist or a state.

426
00:43:29,936 --> 00:43:36,818
You know, what if Janet Yellen wakes up one day and she's like, you know what, I really hate this like it's like free market money.

427
00:43:37,058 --> 00:43:40,216
You know, what if what if we can think of a way to just stop it?

428
00:43:40,258 --> 00:44:03,736
Then she asks her advisor, the advisor says, oh, well, you know, I've been reading about Bitcoin and I think that there's this thing where if we were to buy like a hundred billion dollars of basics and run them, then we could just like mine empty blocks in perpetuity and then no one could ever transact their Bitcoin and the token would devalue.

429
00:44:03,818 --> 00:44:05,736
No one would want to buy it because you can't move it.

430
00:44:06,058 --> 00:44:08,258
Like what's the point of money you can't transact with?

431
00:44:08,656 --> 00:44:11,456
So then she's like, OK, 100 billion dollars.

432
00:44:11,456 --> 00:44:13,296
That's nothing. That's what I spend every day.

433
00:44:13,698 --> 00:44:20,376
You know, when I'm just like trying to like, you know, ruin the economy, I just that's nothing because she has 100 billion.

434
00:44:20,418 --> 00:44:22,978
Right. The Federal Reserve has infinite money.

435
00:44:23,336 --> 00:44:27,818
Like Aziz Kashkari said in 2019, the Fed has infinite cash.

436
00:44:28,738 --> 00:44:31,258
So we don't want it to be cheap.

437
00:44:31,858 --> 00:44:42,616
Right. So what if her advisor says, well, if we wanted to attack Bitcoin with mining, if we wanted to try to control 51 percent of the hash rate, it would cost us two trillion dollars a year.

438
00:44:43,056 --> 00:44:47,376
And then Janet Yellen would say, hmm, well, two trillion, that's a lot of money.

439
00:44:47,376 --> 00:44:49,978
I don't think I can just covertly do that so easily.

440
00:44:49,978 --> 00:44:51,738
I would need like Congress's buy in.

441
00:44:52,056 --> 00:44:56,258
And there's all these Bitcoin loving senators like Senator Lummis and others.

442
00:44:56,656 --> 00:44:57,698
So it's going to be tough.

443
00:44:57,698 --> 00:44:59,298
Ted Cruz is into Bitcoin.

444
00:44:59,858 --> 00:45:10,137
So what we want, people, what we want is for the cost to be a 51 percent hostile miner on Bitcoin to be in the trillions of dollars.

445
00:45:10,818 --> 00:45:20,376
And that is what would defend Bitcoin by making it financially prohibitive for a terrorist or a hostile state to be a 51 percent hostile miner.

446
00:45:22,376 --> 00:45:24,656
Who attacks Bitcoin, we don't want it to be cheap.

447
00:45:25,258 --> 00:45:32,018
So the Bitcoin security budget problem is one of the five reasons why I support drive on Bitcoin.

448
00:45:33,298 --> 00:45:43,096
The security budget problem of low fees, I think, would be solved completely if all transaction fees on every blockchain in the world were paid to Bitcoin miners.

449
00:45:43,216 --> 00:45:49,656
And the only way you're ever going to make that happen is if drivechain or something like it is adopted on Bitcoin.

450
00:45:49,698 --> 00:45:55,698
And then all the blockchains are paying fees to Bitcoin layer one miners through merged mining.

451
00:45:56,298 --> 00:46:05,096
If you don't know what I'm talking about, look back in August of 2010 when Satoshi wrote on the forum publicly about merged mining.

452
00:46:05,096 --> 00:46:06,896
He literally invented merged mining.

453
00:46:07,176 --> 00:46:15,776
And not only that, but he wrote that it would be conceivable and good if every blockchain were merged, mined with Bitcoin.

454
00:46:16,018 --> 00:46:17,418
Today, that's not the case.

455
00:46:17,418 --> 00:46:22,216
Ethereum is not merged mine with Bitcoin and they have much higher fees than Bitcoin does.

456
00:46:22,616 --> 00:46:31,216
Bitcoin miners today, some of them are doing OK, but it's not a good business long run without drivechain or something like it.

457
00:46:32,056 --> 00:46:38,538
Without drivechain or something like it in the long run, the coin base is going to be halved and halved and halved and halved.

458
00:46:38,818 --> 00:46:41,978
And eventually all that will be left will be these low fees.

459
00:46:42,978 --> 00:46:50,458
And Bitcoiners have been saying, well, the fees will rise eventually because, you know, how couldn't they write the block space is scarce.

460
00:46:50,738 --> 00:46:52,738
Eventually the fees will rise.

461
00:46:53,216 --> 00:46:56,738
What they don't understand is that the data is showing the opposite.

462
00:46:56,738 --> 00:46:59,137
The data like look at the data.

463
00:46:59,216 --> 00:47:03,656
The data is we get the occasional fee spike every year or two and then we're back down to zero.

464
00:47:03,656 --> 00:47:05,458
And the fee spike lasts like a day.

465
00:47:05,936 --> 00:47:21,258
Like when fees hit $50 on Bitcoin in 2017 in December and Greg Maxwell wrote to the Linux Foundation email listserv publicly, I'm breaking out the champagne because Bitcoin fees are high enough to pay for security in the future after the subsidy is gone.

466
00:47:21,578 --> 00:47:26,458
He wrote that explicit celebration of high fees and know how long they lasted.

467
00:47:26,698 --> 00:47:33,056
They lasted like a few hours and then the fees were back down all the way back down to one fucking sat per V byte.

468
00:47:33,418 --> 00:47:34,096
It's not good.

469
00:47:34,538 --> 00:47:37,336
So, you know, he said he was breaking out the champagne.

470
00:47:37,936 --> 00:47:39,538
Right. But what is it?

471
00:47:39,538 --> 00:47:40,458
What would he say now?

472
00:47:40,458 --> 00:47:41,936
Like, why is he silent now?

473
00:47:42,616 --> 00:47:52,818
It would be great if Maxwell and others who were celebrating high fees at their all time high in December of 2017, five years ago, would say something.

474
00:47:52,858 --> 00:47:58,096
It'd be helpful if they would say something when we're back to one sat per V byte, which we probably will be soon.

475
00:47:58,538 --> 00:48:03,896
Some people think, well, that the tackle wizards, you know, are going to make the fees high forever.

476
00:48:03,936 --> 00:48:07,018
I don't think so. These these things come and go.

477
00:48:07,056 --> 00:48:10,656
And then eventually users flow to where fees are lower.

478
00:48:11,137 --> 00:48:18,978
And by because of the nature of innovation and capitalism, these are pressed down for everything.

479
00:48:19,018 --> 00:48:25,896
Like in capitalism, because of competition and innovation, the costs of things fall over time in real terms.

480
00:48:26,818 --> 00:48:32,578
And therefore, the cost of transacting Bitcoin falls as people invent new things, new ways of transacting Bitcoin.

481
00:48:33,578 --> 00:48:43,137
Synthetic Bitcoin, like wrapped Bitcoin, Bitcoin on Rootstock, RBTC, Bitcoin on liquid LBTC, Bitcoin.

482
00:48:43,137 --> 00:48:45,416
You can move your Bitcoin around at Coinbase for free.

483
00:48:46,176 --> 00:48:48,176
That's how the high frequency traders are trading.

484
00:48:48,176 --> 00:48:50,778
They're all trading in trusted, trusted setups.

485
00:48:51,056 --> 00:48:55,898
So what Bitcoin is doing, unfortunately, is we're scaling custodially.

486
00:48:56,176 --> 00:48:57,856
We're scaling in a trusted setup.

487
00:48:58,416 --> 00:48:59,536
That's not ideal.

488
00:49:00,176 --> 00:49:03,778
What we want is to scale in peer to peer architecture.

489
00:49:05,137 --> 00:49:12,176
Scaling peer to peer means, as Adam Back has written, using sidechains that are more peer to peer.

490
00:49:12,258 --> 00:49:23,338
So a large block sidechain with one gig blocks would enable the whole billions of the world to onboard to Bitcoin and transact Bitcoin with low fees.

491
00:49:24,218 --> 00:49:29,698
And all of the fees would be paid to Bitcoin miners.

492
00:49:29,698 --> 00:49:34,338
So what Bitcoin miners would get is like 10 billion transactions a day.

493
00:49:36,376 --> 00:49:39,258
Each one is like a penny or two in fees.

494
00:49:41,137 --> 00:49:46,616
And the end result is that the whole world is using peer-to-peer electronic cash in a layered design.

495
00:49:46,736 --> 00:49:51,818
There's even a book called Layered Money by one of the Bitcoin pundits.

496
00:49:52,338 --> 00:49:53,856
So what we want is layered money.

497
00:49:53,856 --> 00:49:59,218
Drivechain is a vision for Bitcoin to have layered architecture.

498
00:49:59,778 --> 00:50:02,778
And it's a very exciting one.

499
00:50:02,818 --> 00:50:05,338
We would bring in the privacy community back to Bitcoin.

500
00:50:05,616 --> 00:50:13,898
Zcash and Monero users would come back to use Bitcoin and their tokens will go to zero in the altcoin world.

501
00:50:14,137 --> 00:50:17,137
And Bitcoin would appreciate as that value flows to Bitcoin.

502
00:50:17,137 --> 00:50:24,056
People are selling the Zcash token, selling a Monero token for Bitcoin and using Bitcoin on the sidechain for privacy.

503
00:50:24,376 --> 00:50:29,458
Similarly, the large block Bitcoiners that left five years ago would come back to Bitcoin.

504
00:50:29,578 --> 00:50:38,056
I guarantee it. I personally think it's very reasonable and predictable that they will because people do things for profit.

505
00:50:38,616 --> 00:50:41,496
There's very few people who don't want to make more money.

506
00:50:42,496 --> 00:50:52,976
And right now, if you'd like moving Bitcoin around in a large block altcoin, the problem with that is that your coin is going to zero.

507
00:50:53,018 --> 00:51:00,936
It's losing value all the time against Bitcoin because a large block version of Bitcoin is very bad on mainchain.

508
00:51:01,616 --> 00:51:03,376
What you want is it on a sidechain.

509
00:51:03,416 --> 00:51:07,098
You want the sidechain to be the large block version of Bitcoin.

510
00:51:08,018 --> 00:51:13,736
As Adam Back correctly tweeted to Roger Ver, we want the large block Bitcoin to be a sidechain.

511
00:51:13,818 --> 00:51:15,018
Therefore, it's optional.

512
00:51:15,296 --> 00:51:16,698
It's opt in.

513
00:51:16,818 --> 00:51:17,898
No one has to use it.

514
00:51:18,976 --> 00:51:27,176
So all those people who are using large block Bitcoin, once they see the sidechain running, they'll come over and they'll use the Bitcoin sidechain.

515
00:51:27,218 --> 00:51:36,736
So Bitcoin will reabsorb all of that community, all of that value, all of that energy and all those people will come back home to Bitcoin.

516
00:51:37,258 --> 00:51:51,056
It's almost like sentimental, like people who left Bitcoin in a rage quit five years ago will come back and they'll use the large block Bitcoin sidechain called Thunder, you know, because it's like thunder after lightning.

517
00:51:51,098 --> 00:51:53,018
So it's that's why they named it Thunder.

518
00:51:53,056 --> 00:51:54,936
So I'm excited about to see Thunder work.

519
00:51:55,376 --> 00:51:59,056
I'm also excited to see Hivemind work, which is what Fiatjaf is excited about.

520
00:51:59,338 --> 00:52:04,018
The peer to peer Oracle network, Thunder, Hivemind and also DNS.

521
00:52:04,376 --> 00:52:08,416
So Satoshi himself was excited about DNS on blockchain and he wrote about it.

522
00:52:09,296 --> 00:52:12,698
And we haven't yet we haven't yet seen it happen in a very big way.

523
00:52:13,296 --> 00:52:17,258
But with a sidechain focused on DNS, maybe we can make it work.

524
00:52:17,898 --> 00:52:19,778
And Paul Sztorc is excited about this.

525
00:52:20,458 --> 00:52:28,778
People could have a self-sovereign right, you know, ownership of DNS of domains.

526
00:52:29,056 --> 00:52:30,616
So it would be great.

527
00:52:30,736 --> 00:52:34,616
And and we don't want Ethereum to be the only place where people are doing this kind of thing.

528
00:52:34,657 --> 00:52:36,218
We want DNS on Bitcoin.

529
00:52:36,898 --> 00:52:38,098
Satoshi thought it was cool.

530
00:52:38,536 --> 00:52:39,536
Let's make it happen.

531
00:52:40,098 --> 00:52:41,176
I've talked to John Seth.

532
00:52:41,338 --> 00:52:42,218
He thinks it's cool.

533
00:52:42,657 --> 00:52:48,098
Many Bitcoiners think it's cool to have DNS built on Bitcoin on a sidechain.

534
00:52:48,218 --> 00:52:49,698
There's no speculative token.

535
00:52:50,657 --> 00:52:58,778
Once again, what Drivechain is all about is using Bitcoin's monetary policy, but enabling the technology that isn't available on Bitcoin.

536
00:52:59,376 --> 00:53:05,176
So it's either not yet been created or it's been created on an altcoin and we want to copy it into a Bitcoin sidechain.

537
00:53:05,616 --> 00:53:13,496
So we'll get DNS sidechain, Thunder large block sidechain, Hivemind sidechain, privacy sidechains and many others.

538
00:53:13,778 --> 00:53:23,496
Bitcoin will become a place with a fascinating and exciting set of sidechains that are high tech, experimental, innovative technologies.

539
00:53:23,856 --> 00:53:30,458
And every one of these sidechain blockchains will be a protocol that is economically harmonious with Bitcoin.

540
00:53:30,496 --> 00:53:38,296
In other words, if you don't use it, you still benefit because it causes Bitcoin's price to go up and it pays fees to the miners.

541
00:53:38,778 --> 00:53:41,056
So everyone wins with Drivechain.

542
00:53:41,338 --> 00:53:43,736
Everyone except certain people.

543
00:53:44,578 --> 00:53:48,376
I'll tell you who they are, who gets fucked by Drivechain.

544
00:53:48,416 --> 00:53:55,616
I'll tell you the people who get fucked by Drivechain are the casinos, the altcoin casinos like Coinbase and Gemini.

545
00:53:55,936 --> 00:53:56,736
Great companies.

546
00:53:57,137 --> 00:54:00,338
OK, but they're going to lose a lot of money if Drivechain is adopted.

547
00:54:00,657 --> 00:54:08,137
Right. They're going to just they'll be better off just buying Bitcoin and holding it because people are going to have all these different altcoins to be trading all the time.

548
00:54:09,137 --> 00:54:19,818
Because if Drivechain is very successful, no one's going to be like buying Zcash and selling it for Monero and selling it for AVAX and selling it for Ethereum, trading all these altcoins against each other.

549
00:54:20,218 --> 00:54:23,338
That'll go away. So that's one of the big losers with Drivechain.

550
00:54:23,936 --> 00:54:36,657
If Drivechain is adopted and is successful or if something like Drivechain is adopted and is very successful, the companies like Coinbase and Gemini, they won't make as much money.

551
00:54:37,616 --> 00:54:50,976
So that's one group that gets hurt by Drivechain is these trusted companies, like trusted in the cryptographic sense, like they're a trusted third party and they're facilitating the trading of altcoins.

552
00:54:51,018 --> 00:54:52,496
They're going to lose out with Drivechain.

553
00:54:52,898 --> 00:54:57,056
Another group that loses with Drivechain is altcoin founders.

554
00:54:57,536 --> 00:55:12,056
Probably more than any other group, Drivechain harms the economic prospects of altcoin founders because they did all this work, they built their altcoin and then Drivechain sent their altcoin to zero.

555
00:55:13,137 --> 00:55:25,536
Because Drivechain copied the open source code of their blockchain into a Bitcoin sidechain, enabling people to use the Bitcoin unit of account with the technology of the altcoin.

556
00:55:25,657 --> 00:55:28,098
So what's the point of the altcoin token?

557
00:55:28,458 --> 00:55:44,616
Why would anyone use some tiny, flimsy, volatile token when they could instead use Bitcoin and have the purchasing power growth of Bitcoin as they're using the technology that was formerly only available in the altcoin?

558
00:55:45,578 --> 00:55:47,137
So that's what Drivechain is all about.

559
00:55:47,176 --> 00:55:52,976
So as I've explained with Drivechain, the companies like Coinbase make less money.

560
00:55:53,578 --> 00:55:54,657
So they're one of the losers.

561
00:55:54,936 --> 00:56:00,856
And the other loser out there is the altcoin founders because their token went to zero.

562
00:56:00,898 --> 00:56:08,416
Like Zucco has tweeted, the creator of Zcash has tweeted that he's like 100% invested in Zcash.

563
00:56:08,657 --> 00:56:11,258
I recall that tweet from like a few months ago.

564
00:56:11,616 --> 00:56:12,936
He wrote something to that effect.

565
00:56:12,976 --> 00:56:14,976
He's like, almost all of my money is in Zcash.

566
00:56:15,296 --> 00:56:16,616
So I'm sorry for him.

567
00:56:16,657 --> 00:56:20,176
But if Drivechain is adopted, he's going to lose.

568
00:56:21,056 --> 00:56:21,778
He's going to lose out.

569
00:56:21,936 --> 00:56:27,818
Also Vitalik, because Vitalik has written online that he has very little Bitcoin.

570
00:56:29,416 --> 00:56:35,258
So most of his wealth would, I would assume, be like compromised and wiped out.

571
00:56:35,338 --> 00:56:50,496
If Drivechain is adopted and is successful, these altcoin founders who are not holding much Bitcoin will lose out because all of the value of all of the altcoins will be absorbed by Bitcoin and the altcoin tokens will trade at zero.

572
00:56:51,496 --> 00:56:55,258
If Drivechain or something like it is adopted and is successful.

573
00:56:57,496 --> 00:57:00,736
And those are two of the groups that would suffer.

574
00:57:01,218 --> 00:57:09,098
There are no other significant large groups that I can think of that would suffer from Drivechain adoption.

575
00:57:09,698 --> 00:57:15,498
And the people who would benefit would be Bitcoiners, regardless of whether they ever use a sidechain, they would benefit.

576
00:57:15,498 --> 00:57:26,858
Well, this has been a great start to our Drivechain Twitter spaces after the recent Bitcoin conference.

577
00:57:26,858 --> 00:57:28,618
We had a hiatus last week.

578
00:57:28,818 --> 00:57:33,536
There was no Drivechain Twitter spaces on Thursday.

579
00:57:33,738 --> 00:57:37,818
To those of you who tuned in to listen and couldn't find a space.

580
00:57:38,176 --> 00:57:39,858
Well, that was why we were at the conference.

581
00:57:39,858 --> 00:57:54,578
The whole LayerTwo Labs team, led by Paul Sztorc and Austin Alexander of Kraken, formerly of Kraken, and Paul Sztorc, the independent Bitcoiner who designed Drivechain with CryptAxe, his co-author of the BIPs.

582
00:57:55,098 --> 00:58:01,338
So, as you all know, Drivechain means Bitcoin Improvement Proposal 300 and 301.

583
00:58:02,338 --> 00:58:10,338
It was first conceived in 2015 when Paul Sztorc wrote about it on his blog, truthcoin.info.

584
00:58:10,978 --> 00:58:13,098
That's truthcoin.info.

585
00:58:14,738 --> 00:58:30,578
Now, there's a whole company that has raised millions of dollars that is bringing this Twitter space to you, as well as we've hired developers to build new sidechains, new ideas to make Drivechain even more understood.

586
00:58:30,936 --> 00:58:38,618
And to show how it would work, to create better code, to demonstrate how it would work in a testnet.

587
00:58:39,256 --> 00:58:46,618
And in addition, we've hired a very famous Bitcoin Core developer to rebase the Drivechain code.

588
00:58:47,296 --> 00:58:50,338
So Luke Dashjr. is working on rebasing the code.

589
00:58:50,858 --> 00:58:58,618
And in the coming months this year, it could be ready for deployment in the form of a pull request to Bitcoin Core on GitHub.

590
00:58:58,896 --> 00:59:05,416
And then the community will have an opportunity to provide input, as they have for the last eight years, commenting on Drivechain.

591
00:59:05,818 --> 00:59:08,818
But the difference is that now, more than ever, people support it.

592
00:59:09,858 --> 00:59:17,656
Many people support Drivechain, including Adam Back of Blockstream and Mike Tidwell, the co-founder of TabConf.

593
00:59:18,578 --> 00:59:26,176
And Fiatjaf, the creator of Nostr, is an emphatic supporter of Drivechain, tweets about it almost every day.

594
00:59:27,176 --> 00:59:33,618
When he's not, you know, busy inventing popular protocols like Nostr, he writes about Drivechain and has written a great essay on it.

595
00:59:34,218 --> 00:59:38,378
I'm going to share that essay here for all of you who are curious.

596
00:59:40,536 --> 00:59:41,738
Let's find it and share it.

597
00:59:47,776 --> 00:59:49,256
I'll put it up in the nest.

598
01:00:01,516 --> 01:00:05,116
In the meantime, if anyone has any questions or comments, please come on up to the stage

599
01:00:06,076 --> 01:00:08,636
and ask your question or comment.

600
01:00:13,676 --> 01:00:20,316
Everyone's free to just share, like, comments or questions or criticisms or skepticism about

601
01:00:20,316 --> 01:00:25,276
Drivechain. Like, what is it? What's the point of it? Maybe do we not need it? Maybe we can just

602
01:00:26,236 --> 01:00:31,516
just never change Bitcoin again and hope for the best. Maybe if we just, you know, set Bitcoin free

603
01:00:31,516 --> 01:00:39,276
in its current form and we all walk away, it'll just rise forever and we can all retire to St.

604
01:00:39,276 --> 01:00:48,636
Kitts and have a yacht, lie on the beach, not worry about Bitcoin development, not worry about side

605
01:00:48,636 --> 01:00:57,196
chains. Well, the problem there is that if Drivechain or something else isn't adopted, then

606
01:00:57,196 --> 01:01:04,476
you can be damn sure it will be adopted on a different blockchain. So if you're someone listening

607
01:01:04,476 --> 01:01:12,636
to this where you don't have any Bitcoin and you are thinking about how to invest in crypto,

608
01:01:13,356 --> 01:01:19,836
you might wonder, hmm, will Bitcoin wipe out all of the altcoins or should I invest in a bunch of

609
01:01:19,836 --> 01:01:25,836
altcoins and Bitcoin just to be diversified? Well, if Drivechain is created, then people

610
01:01:25,836 --> 01:01:31,276
who are thinking like that, who are thinking about diversifying, they will not perform as well,

611
01:01:31,276 --> 01:01:37,276
I think, as someone who only invests in Bitcoin. So the people who really benefit the most

612
01:01:38,076 --> 01:01:44,636
from Drivechain are people who are 100% in Bitcoin. If you're a Bitcoin only type of person,

613
01:01:44,636 --> 01:01:50,876
like a Bitcoin maxi, someone who thinks that Bitcoin alone is the best investment, nothing

614
01:01:50,876 --> 01:01:59,116
else should be owned in crypto, then you should support Drivechain emphatically because without

615
01:01:59,116 --> 01:02:04,956
Drivechain, people will be diversifying across all the altcoins because they'll buy some Zcash,

616
01:02:05,436 --> 01:02:08,396
they'll buy some Monero, they'll buy some Ethereum, they'll buy some everything,

617
01:02:09,036 --> 01:02:16,076
all these different tokens because Bitcoin can't right now support those technologies in a peer

618
01:02:16,076 --> 01:02:21,356
to peer manner. If you want confidential transactions, you have to use the liquid side

619
01:02:21,356 --> 01:02:29,356
chain, which is trusted. So what we want is an advanced version that is less trusted, that is

620
01:02:29,356 --> 01:02:33,596
more peer-to-peer. That's the phrase Adam Back uses, is more peer-to-peer.

621
01:02:35,516 --> 01:02:41,116
Drivechain sidechains are more peer-to-peer because they're miner controlled and a miner

622
01:02:41,116 --> 01:02:48,316
controlled two-way peg is more peer-to-peer than a federated sidechain. It's different,

623
01:02:48,316 --> 01:02:55,036
it's more peer-to-peer because Bitcoin is peer-to-peer and therefore Bitcoin mining

624
01:02:55,675 --> 01:02:59,836
is peer-to-peer and therefore a miner controlled peg is peer-to-peer.

625
01:03:01,036 --> 01:03:09,196
And that's not just sophistry and word games. It is a fact that anyone who wants to participate

626
01:03:09,916 --> 01:03:16,396
in the control of the two-way peg, all they have to do is overcome economic barriers to entry

627
01:03:16,396 --> 01:03:22,476
in terms of mining. They have to get some miners and some electricity and run a node and then they

628
01:03:22,476 --> 01:03:29,116
can participate in the two-way peg. No one needs to give you social approval and permission and

629
01:03:29,116 --> 01:03:35,516
admission. No one needs to approve you to become part of the two-way peg and to participate in it.

630
01:03:35,516 --> 01:03:42,956
That's what peer-to-peer means. It means that no one is privileged. But in a sidechain that uses

631
01:03:43,596 --> 01:03:53,036
a 15-party multi-sig federation, the 15 people or parties in that federation were socially selected.

632
01:03:54,476 --> 01:04:01,756
So it's not peer-to-peer. And this way of talking about peer-to-peer is, to the very best of my

633
01:04:01,756 --> 01:04:09,036
understanding, the only coherent way of talking about it. So I think the people who say,

634
01:04:09,996 --> 01:04:15,436
well, you know, they don't believe that the drivechain is peer-to-peer and they prefer a trusted

635
01:04:15,436 --> 01:04:22,156
sidechain because at least then you can sue the people who stole the money if it's ever stolen or

636
01:04:22,156 --> 01:04:26,636
if there's corruption there. They don't understand that the reason why Bitcoin is successful is

637
01:04:26,636 --> 01:04:31,036
partly because it's peer-to-peer. Peer-to-peer is an essential part of Bitcoin. And therefore,

638
01:04:31,036 --> 01:04:36,076
we must enable sidechains on Bitcoin that are peer-to-peer. And if we don't,

639
01:04:36,076 --> 01:04:44,556
then Bitcoin will suffer because it will lack peer-to-peer capabilities to platform the

640
01:04:44,556 --> 01:04:51,996
technology that currently is only available in sidechains that are trusted. And that technology

641
01:04:51,996 --> 01:04:58,876
is also currently available only in altcoins that are separate from Bitcoin. So as long as

642
01:04:58,876 --> 01:05:03,756
Bitcoin doesn't have drivechain, in my understanding, the altcoins will grow.

643
01:05:03,756 --> 01:05:08,876
They'll grow and grow. And that brings us to another one of the reasons for drivechain,

644
01:05:08,876 --> 01:05:14,796
which is since we discussed the security budget problem earlier, another reason to support drive

645
01:05:14,796 --> 01:05:19,356
chain is to avoid the flippening. I believe the drivechain helps avoid the flippening.

646
01:05:19,356 --> 01:05:25,196
I can't guarantee it. I can't guarantee that we adopt drivechain today and then never again do

647
01:05:25,196 --> 01:05:32,715
we have to worry about Bitcoin not being number one. I can't guarantee the future, but I do think

648
01:05:32,715 --> 01:05:38,556
better late than never. Now is the time to embrace innovation and experimentation on

649
01:05:38,556 --> 01:05:44,556
peer-to-peer sidechains on Bitcoin. And if we're lucky, it won't be too late. So

650
01:05:46,316 --> 01:05:52,715
to sum up, the five reasons to support drivechain are, here they are. This is just my personal take

651
01:05:55,596 --> 01:06:00,316
that I developed after reading all of Paul Sztorc's essays, reading a lot of criticisms

652
01:06:00,316 --> 01:06:04,956
of drivechain. I would say there are five reasons to support it, and they are in no

653
01:06:04,956 --> 01:06:10,796
particular order. Love of innovation. That's number one. That's the one Adam Back talks about.

654
01:06:10,796 --> 01:06:17,996
That's the one Mike Tidwell talks about. And Fiatjaf. All these builders, they like talking

655
01:06:17,996 --> 01:06:25,196
about drivechain in a positive sense. Love of innovation, love of experimentation and development

656
01:06:25,196 --> 01:06:30,156
on Bitcoin. That's what drivechain is about. So that's the most kind of politically correct

657
01:06:30,156 --> 01:06:35,356
way of talking about drivechains. Love of innovation. The next would be scaling Bitcoin

658
01:06:35,356 --> 01:06:41,436
peer-to-peer using large block sidechains. So how do we enable the billions of people in the

659
01:06:41,436 --> 01:06:47,996
world to come to Bitcoin not using a trusted third party? The solution is large block Bitcoin

660
01:06:47,996 --> 01:06:51,756
sidechains. And once again, check out Adam Back's tweets in favor of that.

661
01:06:52,076 --> 01:06:56,637
So we talked about innovation, number one. Number two, scaling peer-to-peer. Number three,

662
01:06:57,517 --> 01:07:03,116
and we're going to get to the least kind of politically correct reasons. But when I say

663
01:07:03,116 --> 01:07:07,996
that, I mean like, because who would object to innovation, right? So getting more controversial,

664
01:07:07,996 --> 01:07:12,556
number two was scaling Bitcoin peer-to-peer. Number three, another reason for supporting

665
01:07:12,556 --> 01:07:18,716
drivechain is the security budget problem. We want to avoid there being a insufficiency

666
01:07:19,196 --> 01:07:24,156
of miner revenue. We want to get that miner fee up, get it really high, get the miners like

667
01:07:24,156 --> 01:07:29,517
$100 million a day. They've never had that. Let's get them trillions of dollars per year.

668
01:07:30,396 --> 01:07:36,956
Let's get all of the fees from all blockchains paid to Bitcoin miners. That is the drivechain

669
01:07:36,956 --> 01:07:43,996
vision for universal merged mining of every blockchain as a sidechain on Bitcoin. So

670
01:07:44,316 --> 01:07:49,276
we've got innovation, number one. Number two, scaling peer-to-peer. Number three,

671
01:07:49,837 --> 01:07:52,156
the security budget problem. Let's get those fees up.

672
01:07:54,236 --> 01:08:00,956
And then number four is the value of ossification. So we want to stop changing main chain Bitcoin.

673
01:08:00,956 --> 01:08:06,076
We want to have main chain Bitcoin ossify completely. Now, of course, there's like one

674
01:08:06,076 --> 01:08:09,996
or two changes that are needed in like 80 years from now because of some kind of

675
01:08:09,996 --> 01:08:15,116
like Y2K bug. There's some discussion about how Bitcoin will have to hard fork in the far future

676
01:08:15,116 --> 01:08:22,315
for this or that reason. But what I'm talking about is we want to naturally enable Bitcoin to

677
01:08:22,315 --> 01:08:29,676
make far fewer changes. And that means a higher degree of ossification. So we want Bitcoin to

678
01:08:29,676 --> 01:08:36,636
pursue ossification. We want it to be understood that fewer or perhaps no more Bitcoin will be

679
01:08:36,636 --> 01:08:43,276
understood that fewer or perhaps no more changes to Bitcoin's main chain would be a good thing.

680
01:08:44,156 --> 01:08:50,316
But ironically, paradoxically, in order to stop changing Bitcoin, in order to achieve

681
01:08:50,316 --> 01:08:55,596
ossification, we must make one more change. And that is the change to end all changes,

682
01:08:55,596 --> 01:09:04,476
as Eden Iago has said in tweets. He's a drivechain. He tweets very favorably about drivechain.

683
01:09:04,476 --> 01:09:08,876
I always been trying to be careful not to call someone a supporter unless they've explicitly

684
01:09:08,876 --> 01:09:14,716
used the word support. But he has numerous times tweeted favorably about drivechain.

685
01:09:15,435 --> 01:09:21,196
So I met him at the conference today. He visited the LayerTwo Labs booth and it was great. We talked

686
01:09:21,196 --> 01:09:27,276
about Sovereign a little bit and he's very friendly and fun to speak to. We had thousands of people

687
01:09:27,276 --> 01:09:33,516
visiting our booth this week. It was great. So the ossification issue, this is the issue where

688
01:09:33,516 --> 01:09:37,356
Bitcoin has this development community that's arguing all the time about which

689
01:09:37,356 --> 01:09:42,076
changes should be made, if any. Well, the people who don't want any changes made to Bitcoin,

690
01:09:42,076 --> 01:09:48,556
the conservatives, they're onto something. But what we need is one more change before

691
01:09:49,516 --> 01:09:56,556
they'll be correct. One last change, the change to end changes. This kind of change,

692
01:09:56,556 --> 01:10:02,156
as you can imagine, logically, is a change that introduces great extensibility.

693
01:10:02,716 --> 01:10:09,596
So what Bitcoin needs is one final change that can enable development, experimentation,

694
01:10:09,596 --> 01:10:19,836
and innovation in a safe, partitioned manner on sidechains forever. So that is the drive

695
01:10:19,836 --> 01:10:27,596
chain vision. Once we do drivechain, we can stop changing the main chain. Bitcoin can ossify like

696
01:10:27,596 --> 01:10:33,916
concrete as the foundation of a great skyscraper. We want to have ossification at the lower levels

697
01:10:34,796 --> 01:10:40,796
in a safe and appropriate manner because building on top of Layer 1 has been made possible by

698
01:10:40,796 --> 01:10:48,636
drivechain. Bitcoin would have a multitude of Layer 2s with drivechain and that would enable

699
01:10:48,636 --> 01:10:54,556
Layer 1 to stop changing. So that was the fourth reason. So the four, again, were

700
01:10:55,516 --> 01:11:01,435
love of innovation, the need to scale Bitcoin in a peer-to-peer manner, not a trusted manner,

701
01:11:02,396 --> 01:11:09,276
the importance of getting Bitcoin's fees up over time to fix the security budget problem of low

702
01:11:09,276 --> 01:11:15,756
fees. Number four, the need to ossify main chain. And last but not least, let's avoid the flippening.

703
01:11:16,396 --> 01:11:20,156
The flippening, the least politically correct thing you can possibly say in Bitcoin,

704
01:11:20,956 --> 01:11:24,876
the thing that everyone doesn't want to hear, the least politically correct thing you can say

705
01:11:24,876 --> 01:11:33,516
in Bitcoin is Ethereum is coming. People don't want to admit it, but hey, Ethereum is already

706
01:11:33,516 --> 01:11:39,276
half the value of Bitcoin. The fees are much higher in Bitcoin. That means people are using

707
01:11:39,276 --> 01:11:45,756
Ethereum. Now, some people are in denial about this and they'll say, well, it's all fake. It's

708
01:11:45,756 --> 01:11:50,796
all a lie. It doesn't really exist. It's just Vitalik playing around with his friends,

709
01:11:51,996 --> 01:11:59,196
doing this or that. They're in denial. The truth is that Ethereum is more like Bitcoin

710
01:11:59,196 --> 01:12:05,435
than most Bitcoiners want to admit. It's a blockchain. It has a peer-to-peer architecture.

711
01:12:05,435 --> 01:12:10,476
And yeah, it has a lot of data and it's expensive to run a full node. But guess what?

712
01:12:10,476 --> 01:12:16,396
They're not that stupid. They're going to do this thing called the purge where they more or less

713
01:12:16,396 --> 01:12:22,316
are going to reduce the burden of running a node by wiping out old data and then they might ossify

714
01:12:22,316 --> 01:12:27,276
and that's when they'll start pursuing as best they can the narratives of digital gold

715
01:12:28,316 --> 01:12:37,116
and of permanence and stability on their base layer. As drive-chainers, we want Bitcoin to

716
01:12:37,116 --> 01:12:43,756
achieve a multi-layered architecture of an ossified layer one, high fees paid to layer one

717
01:12:43,756 --> 01:12:49,996
with a great amount of extensibility for building on layer twos. And we want to do it before Ethereum

718
01:12:49,996 --> 01:12:56,716
gets there. There's like a race going on to make a lot of money by developing the best blockchain

719
01:12:56,716 --> 01:13:04,476
for the world. Bitcoin was the first, but the competitors might catch up eventually,

720
01:13:04,476 --> 01:13:11,036
unless we get smart, get our house in order, adopt drivechain, and then we crush them all.

721
01:13:11,596 --> 01:13:17,276
Because think about this domino effect. First we do drivechain, then the Bitcoiners

722
01:13:17,276 --> 01:13:22,476
send one percent of their Bitcoin into the Zcash sidechain to experiment with its strong privacy.

723
01:13:23,036 --> 01:13:28,796
Then that sidechain will have four billion dollars of value. As a result of it being larger and

724
01:13:28,796 --> 01:13:36,076
stronger, presuming it has a lot of fees, the Zcash users will flow over to Bitcoin's sidechain

725
01:13:36,076 --> 01:13:42,876
that uses Zcash technology. And as a result, now it's five billion dollars of value in the Zcash

726
01:13:42,876 --> 01:13:49,116
sidechain. And then that altcoin, Zcash altcoin, has gone to zero. That would be the first domino

727
01:13:49,116 --> 01:13:54,476
to fall. The next domino is the large block Bitcoiners. Thousands of people who like large

728
01:13:54,476 --> 01:13:59,756
block Bitcoin come home to Bitcoin, they sell their altcoins, they give up on BSV and BCH,

729
01:13:59,756 --> 01:14:06,636
and they use Thunder, which is a one gigabyte large block Bitcoin sidechain. Let's assume

730
01:14:06,636 --> 01:14:11,756
that Thunder accrues 10 billion dollars of value, because it's not very hard to imagine

731
01:14:12,316 --> 01:14:18,716
that many Bitcoiners who are holding layer one Bitcoin right now don't do things with Bitcoin

732
01:14:18,716 --> 01:14:24,796
because of the fees. And perhaps they don't do things with Lightning because of the specific

733
01:14:24,796 --> 01:14:30,956
challenges of Lightning use. Lightning isn't so simple. It's a little bit complicated. Sometimes

734
01:14:30,956 --> 01:14:38,236
channels close accidentally. People have to pay fees to make it work. And if the, I mean,

735
01:14:38,236 --> 01:14:43,516
to open the channels and to run the node, the goal here is to enable something that's great,

736
01:14:43,516 --> 01:14:49,596
like Lightning. That's an alternative. A large block Bitcoin sidechain for low fees and scaling

737
01:14:49,596 --> 01:14:54,796
peer to peer. And Lightning can work on top of it. So it's not a competitor to Lightning. Lightning

738
01:14:54,796 --> 01:14:59,676
is great, but we want to make Lightning even better by enabling Lightning to work on multiple

739
01:14:59,676 --> 01:15:05,356
blockchains, all attached to Bitcoin. The whole goal of Drivechain is to do things in a way

740
01:15:05,356 --> 01:15:11,996
that makes Bitcoin's community economically aligned with innovation on top of Bitcoin.

741
01:15:11,996 --> 01:15:17,916
We don't want innovation to accrue value to altcoins. We want all the innovation in our space

742
01:15:17,916 --> 01:15:24,076
to accrue value to Bitcoin. And therefore we have to copy all this good tech onto Bitcoin sidechain.

743
01:15:24,076 --> 01:15:30,956
So as I explained, you would have the Zcash community come over, bringing a billion dollars.

744
01:15:30,956 --> 01:15:36,156
The large block Bitcoiners come over, tons of people, tons of energy coming back to Bitcoin.

745
01:15:36,796 --> 01:15:43,196
So right there, we've imagined two different communities of altcoiners coming over to Bitcoin,

746
01:15:43,996 --> 01:15:47,756
dropping their altcoins and using Bitcoin sidechains,

747
01:15:47,756 --> 01:15:53,435
causing Bitcoin's price to go up. Drivechain is number go up technology.

748
01:15:55,756 --> 01:16:00,076
I personally think it's coolest to talk about all the cool innovative technologies that

749
01:16:00,076 --> 01:16:03,756
Drivechain would facilitate on Bitcoin. But to a lot of people, what they want to hear

750
01:16:04,316 --> 01:16:10,636
is that Bitcoin's price will go up. And that is a valid view of Drivechain.

751
01:16:10,636 --> 01:16:16,636
It's valid and it's correct, I believe, that Drivechain will cause Bitcoin's price to skyrocket

752
01:16:16,636 --> 01:16:23,435
because over time, lots of altcoin communities would migrate to Bitcoin and use sidechains.

753
01:16:23,435 --> 01:16:29,516
And that means they're buying Bitcoin. They're buying it either on mainchain and then sending

754
01:16:29,516 --> 01:16:35,516
it through the Hashrate escrow two-way peg to use the sidechain version of Bitcoin, the synthetic

755
01:16:35,516 --> 01:16:41,276
Bitcoin on the sidechain that is redeemable for actual Bitcoin on mainchain, or they're buying

756
01:16:41,276 --> 01:16:49,676
the sidechain's synthetic token directly in a swap in the secondary market. In fact, it's worth

757
01:16:49,676 --> 01:16:55,516
noting that the Hashrate escrow mechanism, the two-way peg, would be used primarily by professionals.

758
01:16:56,156 --> 01:17:02,636
Ordinary Bitcoin users would not use the two-way peg. Just like in the financial markets,

759
01:17:03,196 --> 01:17:11,836
almost everyone trading futures is a professional. Most ordinary people don't participate in the

760
01:17:11,836 --> 01:17:18,396
futures market. And the Hashrate escrow mechanism, it's kind of like a futures contract,

761
01:17:18,396 --> 01:17:22,476
because especially when you're pegging out, going from the sidechain to the mainchain,

762
01:17:23,036 --> 01:17:30,716
there is a delay, which helps improve the security model and auditability of what's happening.

763
01:17:30,716 --> 01:17:36,556
Paul Sztorc decided to slow down the pickup process to ensure it would work correctly

764
01:17:36,556 --> 01:17:42,716
and benefit from observation by the community. So professionals would go through the two-way peg,

765
01:17:42,716 --> 01:17:47,276
ordinary people would swap, and the professionals would arbitrage the two-way peg,

766
01:17:47,996 --> 01:17:53,916
ensuring that the synthetic Bitcoin on the sidechain always trades one for one with mainchain

767
01:17:53,916 --> 01:18:01,036
Bitcoin. It's an elaborate and beautiful design, and it's just like Bitcoin. I really feel like

768
01:18:01,036 --> 01:18:07,676
if Satoshi were with us today, he would definitely support this idea. And if this idea doesn't

769
01:18:07,676 --> 01:18:13,196
succeed in being correctly understood and popularized within Bitcoin's community in the

770
01:18:13,196 --> 01:18:20,556
near future, Bitcoin will suffer significantly, I think, I believe. I don't see how Bitcoin

771
01:18:20,556 --> 01:18:26,156
succeeds without drivechain or something like it. I also think that if the flippenings were to occur,

772
01:18:26,156 --> 01:18:33,036
or if there were a security budget crisis in which someone took advantage of Bitcoin's currently low

773
01:18:33,036 --> 01:18:40,396
fees to attack Bitcoin, I think either of those things would damage Bitcoin's narratives for a

774
01:18:40,396 --> 01:18:45,116
long time, potentially. So I would like to see drivechain adopted as soon as possible,

775
01:18:45,116 --> 01:18:51,435
strengthening Bitcoin's narratives, strengthening Bitcoin's long-term growth trajectory,

776
01:18:51,435 --> 01:18:56,876
bringing technologists and builders to Bitcoin instead of them almost all going to Ethereum.

777
01:18:56,876 --> 01:19:04,316
Ethereum has tons of people working on it because you can build peer-to-peer technology on Ethereum,

778
01:19:04,316 --> 01:19:09,676
which is not quite possible on Bitcoin due to the lack of sidechains on Bitcoin that are more

779
01:19:09,676 --> 01:19:17,516
peer-to-peer. As Dr. Bak has said, drivechain enables sidechains that are more peer-to-peer.

780
01:19:17,516 --> 01:19:23,596
Right now, the sidechains have a federation involved. 15 people or more are socially

781
01:19:23,596 --> 01:19:29,196
selected to control the Bitcoin that is sent to the sidechain. We don't want that. That's

782
01:19:29,196 --> 01:19:35,836
a trusted model. That's a departure from Satoshi's vision of peer-to-peer electronic cash.

783
01:19:36,716 --> 01:19:43,356
So the effort done by the people at Blockchain to build Liquid has been outstanding. And the

784
01:19:43,356 --> 01:19:49,435
next generation of sidechains would be sidechains that are more peer-to-peer, as Adam Bak has

785
01:19:49,435 --> 01:19:55,356
described drivechain. It's all about making more peer-to-peer sidechains rather than just

786
01:19:55,356 --> 01:19:56,876
sidechains that are federated.

787
01:19:58,464 --> 01:20:12,464
Some people would say, well, Henry, the drivechain two-way peg sidechain, it's a federation too. It's just a federation that has all the miners. That's wrong.

788
01:20:12,464 --> 01:20:24,464
What they're missing there is that the number of participants is not what makes something peer-to-peer. Having more participants does not make something peer-to-peer.

789
01:20:24,464 --> 01:20:35,464
If you have a 15-party multisig and you use Miniscript or something to make it like a 2,000-person multisig, that does not make it peer-to-peer.

790
01:20:35,464 --> 01:20:45,464
What makes something peer-to-peer is the idea that no one was socially selected to participate in any specific role.

791
01:20:46,464 --> 01:20:58,464
If there were one person in the whole world who was mining Bitcoin, Bitcoin would still be peer-to-peer. And if you don't understand that, then I haven't explained it well.

792
01:20:59,464 --> 01:21:16,464
What I'm trying to explain is that, and I see this on Twitter, there are certain vocal critics of drivechain who, I can't believe they write this, but they write that, well, the drivechain system is just a big group of anonymous miners and how can we trust them?

793
01:21:16,464 --> 01:21:24,464
It's like, that's how Bitcoin works. You don't know who's mining. You don't know whether I'm running my ASIC or not in my house.

794
01:21:24,464 --> 01:21:42,464
The entire set of parties in the world who are mining Bitcoin are presumed by Satoshi and everyone, the way it's designed, that they're presumably anonymous, mutually distrusting, and self-interested.

795
01:21:43,464 --> 01:21:50,464
Those are the three attributes of Bitcoin miners, anonymous, mutually distrusting, and self-interested.

796
01:21:50,464 --> 01:21:58,464
And yet, Bitcoin has incentive-compatible patterns of activity. The whole thing works.

797
01:21:58,464 --> 01:22:16,464
Drivechain is the same way. The miners have a strong profit motive to get those fees forever from the drivechains, from the drivechain sidechains. Large, large fees. The bigger they get, the more the miners are going to want those fees.

798
01:22:16,464 --> 01:22:31,464
And if they were to ever attack the drivechain and steal all the money, it would take three to six months, depending on how much hash rate is deployed in the act.

799
01:22:31,464 --> 01:22:48,464
And if it's hostile to the will of the community, it would show that drivechain isn't working, and therefore Bitcoin wouldn't have peer-to-peer sidechains, and it would have been a failure of Bitcoin to develop correctly.

800
01:22:48,464 --> 01:23:01,464
Now, the community might express its will to terminate a sidechain, and then the miners could act accordingly to terminate it.

801
01:23:01,464 --> 01:23:16,464
So, in fact, the role of the miners having theoretical power to terminate a drivechain is part of the design. It's part of the design. It's part of the intended design that the miners could express the will of the community by terminating a drivechain.

802
01:23:16,464 --> 01:23:31,464
And this would occur if a drivechain somehow interfered with other drivechains. And when I say drivechain with a lowercase d, I mean a sidechain. If one of the sidechains interferes with the other sidechains or with the mainchain, then the miners could turn it off.

803
01:23:31,464 --> 01:23:54,464
So if somehow there were some drivechain that people were doing things that were inappropriate, unethical, or harmful to Bitcoin's value, then if the Bitcoin community as a whole doesn't like what's going on in that sidechain, then they could rise up and tell the miners, let's stop what that sidechain is doing.

804
01:23:55,464 --> 01:24:07,464
I don't think that'll ever happen, but it is possible. And that's why drivechain was designed the way it is, so that we don't have these things going on forever if we don't want them to.

805
01:24:08,464 --> 01:24:19,464
Probably there'll never be a problematic sidechain. Because the only way that the drivechains get launched in the first place is through the community deciding to launch them.

806
01:24:20,464 --> 01:24:29,464
There has to be a lot of hashrate that is supporting the launch of a new drivechain. Otherwise, that drivechain won't ever get launched.

807
01:24:30,464 --> 01:24:42,464
So this is not like ERC-20, where just any person can just launch something. Drivechain does not enable a proliferation of chaotic activity on Bitcoin.

808
01:24:43,464 --> 01:24:54,464
Instead, drivechain sidechains are launched one by one deliberately by the Bitcoin community, acting through the miners.

809
01:24:55,464 --> 01:25:09,464
So there probably will just be maybe, if drivechain were adopted in a year from now, let's say, on day one, maybe five or ten different interesting and independent sidechains would be launched.

810
01:25:09,464 --> 01:25:24,464
And it would be great to see that. There would be one for privacy, one for large blocks, one for DNS. There'd be a whole suite of interesting and innovative technologies.

811
01:25:25,464 --> 01:25:31,464
And of course, Hivemind. Hivemind is very exciting. It's Paul Sztorc's own invention.

812
01:25:31,464 --> 01:25:39,464
In fact, that's why he created drivechain, as I understand, because he wanted to enable Hivemind. He was waiting for others to create something like drivechain.

813
01:25:40,464 --> 01:25:49,464
No one was doing it. So then he did it. And that way, he was hoping that would be adopted. And then he would be able to focus on developing the peer-to-peer Oracle network called Hivemind.

814
01:25:50,464 --> 01:25:52,464
At the time, it was called Truthcoin. Now it's called Hivemind.

815
01:25:53,464 --> 01:25:56,464
So we'll get all these cool technologies on Bitcoin.

816
01:25:57,464 --> 01:26:09,464
Well, to reset the room, this is drivechain Twitter spaces run by LayerTwo Labs. We are promoting Bitcoin Improvement Proposal 300 and 301.

817
01:26:10,464 --> 01:26:21,464
The most important idea in all of crypto, in my opinion. Fundamental enhancement to Bitcoin. One of the most exciting things to ever happen in the entire world.

818
01:26:21,464 --> 01:26:31,464
I'm not kidding. We're talking about whether or not humanity achieves sound money through hyper-Bitcoinization. Will it happen or won't it happen?

819
01:26:32,464 --> 01:26:44,464
Well, one way we can be sure it won't happen is if Bitcoin never upgrades in a manner that would enable altcoin technology to be built on Bitcoin in a peer-to-peer architecture.

820
01:26:44,464 --> 01:26:52,464
Right now, Bitcoin doesn't have that. And that is exactly the reason why people are creating more altcoins all the time.

821
01:26:53,464 --> 01:27:00,464
At least the rationale that altcoin founders give is that they want to build something new that can't be built on Bitcoin.

822
01:27:01,464 --> 01:27:08,464
And of course, one might cynically say, well, they're saying that what they really want is just a lot of money.

823
01:27:09,464 --> 01:27:20,464
But if the rationale they're giving is that Bitcoin lacks extensibility, let's remove that rationale. Let's eliminate that rationale.

824
01:27:21,464 --> 01:27:33,464
And then they'll have to give some rationale that is inferior. And we know it's inferior because currently they're choosing to use this rationale, which is that Bitcoin lacks extensibility.

825
01:27:34,464 --> 01:27:41,464
Vitalik used the word freedom in the Ethereum white paper, referring to what is achieved by not building on Bitcoin.

826
01:27:42,464 --> 01:27:49,464
He said, we wanted unlimited freedom to design all the features and attributes of our blockchain. And that's why we're starting a new one.

827
01:27:50,464 --> 01:28:00,464
Well, if drivechain had been available at that time, Vitalik could have instead built a Bitcoin sidechain for smart contracts.

828
01:28:00,464 --> 01:28:05,464
And he would have done that or he would have launched an altcoin with a different rationale.

829
01:28:06,464 --> 01:28:13,464
It's essential that Bitcoin eliminate the rationale that he used. And this has been going on for a long time.

830
01:28:14,464 --> 01:28:17,464
He gave that rationale for his altcoin in 2014 in a white paper then.

831
01:28:18,464 --> 01:28:32,464
And today, eight years later or about seven or eight years later, we still haven't developed Bitcoin enough such that his rationale would be impossible today.

832
01:28:33,464 --> 01:28:51,464
But if Bitcoin adopts drivechain or something like it, then no longer will altcoin founders be able to say that they're building an altcoin because Bitcoin can't platform the technology that they want to build in a peer to peer design.

833
01:28:52,464 --> 01:29:05,464
Things are going to come to a head. Either the Bitcoin community will understand the value of drivechain, embrace innovation and move forward with this exciting technology.

834
01:29:06,464 --> 01:29:16,464
Or they will say, you know what, we're better off sitting and waiting for something different or maybe doing nothing and letting Bitcoin be as it is.

835
01:29:17,464 --> 01:29:29,464
But if that's the path that's chosen, Bitcoin will perhaps eventually be flipped and become an irrelevant small community like the gold bugs of today.

836
01:29:30,464 --> 01:29:44,464
There's a few people and they meet at conferences, they talk about gold and they dream about the refinancialization of gold and they think that gold is the only real money, yada, yada, yada.

837
01:29:45,464 --> 01:29:50,464
They're all totally wrong. It's impossible to build on top of gold. It has no extensibility.

838
01:29:51,464 --> 01:29:56,464
And its scaling layer is paper, which is trusted.

839
01:29:57,464 --> 01:30:00,464
There's no peer to peer way of scaling gold.

840
01:30:01,464 --> 01:30:11,464
And Bitcoin could, if drivechain is not adopted, become digital gold in the worst possible sense of that phrase.

841
01:30:12,464 --> 01:30:22,464
If drivechain is not adopted and if nothing like drivechain is ever adopted, Bitcoin will be perhaps like digital gold in the worst possible sense.

842
01:30:23,464 --> 01:30:31,464
It's a thing which has credible scarcity, but no extensibility, no peer to peer scalability.

843
01:30:32,464 --> 01:30:41,464
And it's been flipped so it doesn't have the network effects of whatever becomes the world's money, whether it's dollars or Ethereum or something.

844
01:30:42,464 --> 01:30:52,464
So we don't want Bitcoin to be small, lacking in extensibility, lacking in peer to peer scalability and suffering from a security budget problem of low fees.

845
01:30:53,464 --> 01:31:00,464
And also due to the lack of extensibility, suffering from ongoing changes to its layer one.

846
01:31:01,464 --> 01:31:04,464
In other words, we don't want Bitcoin to have no ossification.

847
01:31:05,464 --> 01:31:12,464
So right there, I've given once again the five reasons why we must do drivechain or something like it.

848
01:31:13,464 --> 01:31:18,464
We need Bitcoin to be a place of innovation and experimentation that's safe and doesn't harm the main chain.

849
01:31:19,464 --> 01:31:27,464
We need Bitcoin to have high fees for security, security, hash rate security, economic security, the security budget.

850
01:31:27,464 --> 01:31:31,464
We need those high fees. We need the innovation. We need the ossification.

851
01:31:32,464 --> 01:31:35,464
We need the peer to peer scalability and we must avoid the flippening.

852
01:31:36,464 --> 01:31:47,464
Those are the five reasons why drivechain is a powerful idea and it's going to happen for 100 percent, either on Bitcoin or some altcoin will adopt it one day.

853
01:31:48,464 --> 01:32:06,464
And then that altcoin, whether it's Ethereum or whatever, that altcoin that has a design that's similar to drivechain will be the world's blockchain that is most favorable for development and scaling and security and stability.

854
01:32:07,464 --> 01:32:11,464
It'll have all these attributes and features and narratives that are favorable.

855
01:32:11,464 --> 01:32:18,464
Let's keep Bitcoin the winner. Let's make Bitcoin the place, the blockchain that has all of those features and narratives.

856
01:32:19,464 --> 01:32:30,464
The stability and ossification of layer one with the extensibility and variety and innovation and safe partitioned experimentation on sidechains, the layer two.

857
01:32:31,464 --> 01:32:39,464
Let's have Bitcoin have very high fees for security. No more talk of security budget FUD. No more talk of Peter Todd's inflation.

858
01:32:39,464 --> 01:32:47,464
Let's not do inflation. Inflation is a terrible idea that would ruin Bitcoin's most valuable narrative, which is scarcity.

859
01:32:48,464 --> 01:32:54,464
Not just any kind of scarcity, but the scarcity that Bitcoin invented, which is absolute scarcity.

860
01:32:55,464 --> 01:32:59,464
Nothing in the world ever had absolute scarcity before Bitcoin.

861
01:33:00,464 --> 01:33:07,464
People think there's a certain number of Rembrandt paintings and then one new one is discovered every now and then.

862
01:33:07,464 --> 01:33:13,464
People think there's a certain amount of gold and then a new mine is discovered and there's more gold.

863
01:33:14,464 --> 01:33:20,464
People think there's a certain number of dollars and then every few years, whoever is president prints a few more trillion.

864
01:33:21,464 --> 01:33:25,464
Like when under Trump, you know, the economy crashed because of COVID and it shut down.

865
01:33:26,464 --> 01:33:28,464
And then he just printed a few trillion dollars and handed it out to everyone.

866
01:33:29,464 --> 01:33:34,464
So the dollar doesn't have scarcity. Artworks don't have scarcity. Gold doesn't have much scarcity.

867
01:33:34,464 --> 01:33:38,464
There's always more gold. Every year they mine one percent more gold forever.

868
01:33:39,464 --> 01:33:41,464
But Bitcoin has absolute scarcity.

869
01:33:42,464 --> 01:33:49,464
And what Peter Todd wants to do, and he has tweeted in favor of this, is introduce tail emissions.

870
01:33:50,464 --> 01:33:52,464
He's written an essay on it. He's talked about it.

871
01:33:53,464 --> 01:33:57,464
So he has a favorable attitude towards the idea of inflation for Bitcoin being permanent.

872
01:33:58,464 --> 01:34:09,464
Whereas we as drive chainers know that we should preserve Bitcoin's absolute scarcity and use what Satoshi recommended in all his brilliance, which is merged mining.

873
01:34:10,464 --> 01:34:18,464
Merged mining, which brings transaction fees from a blockchain outside of Bitcoin's blockchain to the Bitcoin miners.

874
01:34:19,464 --> 01:34:23,464
In other words, you can have 200 sidechains on Bitcoin.

875
01:34:23,464 --> 01:34:26,464
Each one is a separate blockchain. Each one is a protocol.

876
01:34:27,464 --> 01:34:30,464
200 different sidechains. Imagine that.

877
01:34:31,464 --> 01:34:34,464
And all of them sending their transaction fees to Bitcoin's miners.

878
01:34:35,464 --> 01:34:40,464
That is the Satoshi vision for merged mining and security.

879
01:34:41,464 --> 01:34:46,464
And you can go read in August of 2010 when he wrote explicitly that in the BitDNS thread.

880
01:34:46,464 --> 01:34:49,464
So if you go to Google and you search the word BitDNS.

881
01:34:50,464 --> 01:34:54,464
B-I-T-D-N-S. B-I-T-D-N-S.

882
01:34:55,464 --> 01:34:57,464
Search for BitDNS Satoshi.

883
01:34:58,464 --> 01:35:01,464
And then you'll see what he wrote in August of 2010 on the forum.

884
01:35:02,464 --> 01:35:10,464
He wrote to his friends, his contacts, that what he envisions is every blockchain in the world being merged mined.

885
01:35:10,464 --> 01:35:15,464
And Bitcoin collecting fees from all of them, making Bitcoin stronger.

886
01:35:16,464 --> 01:35:17,464
He used the word strength.

887
01:35:18,464 --> 01:35:22,464
He was explicitly talking about increasing the strength of the network from fees.

888
01:35:23,464 --> 01:35:27,464
Satoshi understood the security budget problem and he told us what the solution is.

889
01:35:28,464 --> 01:35:32,464
The solution is to have every blockchain paying fees to Bitcoin's miners.

890
01:35:33,464 --> 01:35:35,464
Drivechain aspires to make that happen.

891
01:35:35,464 --> 01:35:40,464
Drivechain aspires to fix the security budget and all talk of inflation.

892
01:35:41,464 --> 01:35:48,464
Every day the leading Ethereum advocates on Twitter, every day they tweet that Bitcoin is going to have to do inflation.

893
01:35:49,464 --> 01:35:51,464
There is this guy Evan Van Ness.

894
01:35:52,464 --> 01:35:57,464
He has 100,000 followers and every day he tweets Bitcoin will be doing inflation.

895
01:35:58,464 --> 01:36:01,464
He always says it like orange coin will do inflation.

896
01:36:02,464 --> 01:36:10,464
So he knows, he's beating the drum, he knows that one day Bitcoin won't have enough fees for Coinbase, for the miners.

897
01:36:11,464 --> 01:36:19,464
But I asked him once, I tweeted to him, I said, what about Paul Sztorc's Drivechain idea where merged mining could bring fees?

898
01:36:20,464 --> 01:36:26,464
And it's amazing. He said, I think, he wrote this to me, he said, I think Paul's ideas are great.

899
01:36:27,464 --> 01:36:32,464
But I am pretty sure the Bitcoin community will never adopt them.

900
01:36:34,464 --> 01:36:36,464
So that's the big question, folks.

901
01:36:37,464 --> 01:36:46,464
Is this Ethereum guy right that the Bitcoin community is not doing what's in their own best interests?

902
01:36:47,464 --> 01:36:50,464
And maybe the Bitcoin community will never do it.

903
01:36:50,464 --> 01:36:51,464
And then this guy will be right.

904
01:36:52,464 --> 01:36:59,464
This Ethereum maxi will be right that Bitcoin will have to resort to inflation like Peter Todd thinks is good.

905
01:37:01,464 --> 01:37:03,464
I think that would be the end of Bitcoin.

906
01:37:04,464 --> 01:37:08,464
Can you imagine a pull request to Bitcoin Core by Peter Todd?

907
01:37:09,464 --> 01:37:15,464
And it'll be called like, you know, BIP 400, inflation on Bitcoin forever.

908
01:37:16,464 --> 01:37:21,464
Can you imagine like the maintainers merging that request?

909
01:37:22,464 --> 01:37:24,464
And then Bitcoin, everyone upgrades their nodes.

910
01:37:25,464 --> 01:37:30,464
And now there's 22 million Bitcoin in the future, 23 million, eventually infinity, right?

911
01:37:31,464 --> 01:37:34,464
It goes on forever. 1% inflation forever will be the BIP.

912
01:37:35,464 --> 01:37:37,464
And it'll be the end of Bitcoin.

913
01:37:38,464 --> 01:37:42,464
Like if that ever happens, it'll probably be after the flippening.

914
01:37:42,464 --> 01:37:49,464
And it'll just, it'll be so irrelevant and pointless that no one will even care about it because Bitcoin will have already lost.

915
01:37:50,464 --> 01:37:52,464
By the time the community is adopting inflation, things will be disastrous.

916
01:37:53,464 --> 01:37:55,464
The whole project will be irrelevant and small.

917
01:37:56,464 --> 01:38:02,464
We'll be like market cap, we'll be like, you know, you got a coin market cap and it will be like number 150 on the list.

918
01:38:03,464 --> 01:38:04,464
It won't be good.

919
01:38:05,464 --> 01:38:07,464
So I'm not a supporter of inflation on Bitcoin.

920
01:38:08,464 --> 01:38:09,464
I got into Bitcoin because there was no inflation.

921
01:38:09,464 --> 01:38:14,464
I came to Bitcoin from like an Austrian economics background, von Mises and Hayek.

922
01:38:15,464 --> 01:38:21,464
And, you know, the economist at George Mason University and in Auburn, Alabama at the Mises Institute.

923
01:38:22,464 --> 01:38:26,464
It was great to actually see the Mises Institute people at the conference in Miami.

924
01:38:27,464 --> 01:38:32,464
They were there handing out pamphlets about liberty and talking about Rothbard and Mises.

925
01:38:33,464 --> 01:38:34,464
So they like Bitcoin.

926
01:38:35,464 --> 01:38:37,464
Does anyone have any questions or comments?

927
01:38:37,464 --> 01:38:39,464
We had one speaker earlier.

928
01:38:40,464 --> 01:38:41,464
Today has been a quiet day.

929
01:38:42,464 --> 01:38:46,464
It's been mostly me just doing what I do for better or for worse.

930
01:38:47,464 --> 01:38:49,464
Thank you so much for listening, everyone.

931
01:38:50,464 --> 01:38:58,464
Some of you I can see in the audience are people I've spoken to before who are experts and others are new faces.

932
01:38:59,464 --> 01:39:00,464
I hope everyone's had a good time.

933
01:39:01,464 --> 01:39:03,464
You may be wondering how can you get involved in Bitcoin more?

934
01:39:04,464 --> 01:39:05,464
What can you do?

935
01:39:05,464 --> 01:39:06,464
So there's a bunch of things.

936
01:39:07,464 --> 01:39:14,464
You can go to our Telegram group and ask any questions to the DriveChainers there.

937
01:39:15,464 --> 01:39:17,464
Paul and CryptAxe and others are there all the time.

938
01:39:18,464 --> 01:39:24,464
There's a technical support question thread where you can ask questions if you're trying to run the Drivechain software.

939
01:39:25,464 --> 01:39:32,464
All of you are encouraged to run the Drivechain software on your computer and experiment with Drivechain and TestNet.

940
01:39:33,464 --> 01:39:38,464
And in addition to the Telegram group, we also have a YouTube channel with lots of good videos.

941
01:39:39,464 --> 01:39:43,464
Paul Sztorc spoke at Bitcoin Miami last week.

942
01:39:44,464 --> 01:39:46,464
So the videos are already up probably on YouTube.

943
01:39:47,464 --> 01:39:49,464
You can see the latest of what he said.

944
01:39:50,464 --> 01:39:53,464
I haven't done it yet because I was staying in the booth and I haven't had a chance to watch any of those videos.

945
01:39:54,464 --> 01:40:00,464
But I'm going to be in my free time soon checking those out to get the latest information and see what people said.

946
01:40:00,464 --> 01:40:07,464
And in addition to the Telegram group and the YouTube channel and downloading the software, there are other things you can do.

947
01:40:08,464 --> 01:40:09,464
Let's see. You can write on Twitter.

948
01:40:10,464 --> 01:40:12,464
You can engage on Twitter about Drivechain.

949
01:40:13,464 --> 01:40:17,464
You can go to your local BitDevs meetup and stand up and say to everyone there,

950
01:40:18,464 --> 01:40:28,464
let's talk a little bit about how Drivechain can bring ossification and higher fees and more extensibility and innovation and avoid the flippity and all these great things.

951
01:40:29,464 --> 01:40:34,464
So those are just some of the ways that you can get involved.

952
01:40:35,464 --> 01:40:40,464
Talking about it in person with other Bitcoiners, talking about it on Twitter, getting involved on the Telegram group,

953
01:40:41,464 --> 01:40:48,464
and watching the videos on YouTube, sharing them, liking them, sharing this Drivechain Twitter space, which has been recorded.

954
01:40:49,464 --> 01:40:53,464
If you thought this was a good chat, share it with one of your friends, just send a link.

955
01:40:54,464 --> 01:40:56,464
So this audio will be up forever probably.

956
01:40:56,464 --> 01:41:00,464
And available for people to listen to on demand.

957
01:41:01,464 --> 01:41:03,464
Thank you so much.

958
01:41:04,464 --> 01:41:05,464
And we meet every Monday and Thursday.

959
01:41:06,464 --> 01:41:11,464
So if you have questions or concerns or you're not sure how one part of Drivechain works as I described,

960
01:41:12,464 --> 01:41:13,464
then please let me know.

961
01:41:14,464 --> 01:41:18,464
Either send me as a DM or come back next time on Thursday and ask questions.

962
01:41:18,464 --> 01:41:25,464
So we meet here on Twitter Spaces at 9.30 a.m. Monday and Thursday Pacific U.S. time.

963
01:41:26,464 --> 01:41:32,464
So Los Angeles time zone, 9.30 a.m. Mondays and Thursdays every week forever.

964
01:41:33,464 --> 01:41:36,464
We're talking Drivechain, BIP300 and 301.

965
01:41:37,464 --> 01:41:42,464
Bring your questions, bring your friends, your family, everyone log on and ask questions here.

966
01:41:43,464 --> 01:41:45,464
We can have a little debate, conversation.

967
01:41:45,464 --> 01:41:48,464
Thank you for listening and I'll see you Thursday, people.

968
01:41:49,464 --> 01:41:50,464
Thank you.

969
01:41:51,464 --> 01:41:52,464
Enjoy your week.