Cointime

Cointime

Download App
iOS & Android

Blocklike Panel | Navigating the Bitcoin Ecosystem: Challenges and Opportunities in 2024

Validated Media

On April 25, Blocklike held a panel discussion on the theme of "Navigating the Bitcoin Ecosystem: Challenges and Opportunities in 2024" on Binance Live. The event was hosted by Rita, Commercial Director of ScaleBit, and invited Bjorn and Kelvin, the two co-founders of 0xVM, the modular execution layer of the Bitcoin ecosystem, as well as representatives of institutions deeply involved in the Bitcoin ecosystem: Yang Yang, investment director of Signum Capital, and Justin, Investment Manager at UOB Venture Management.

With the rise of the Bitcoin ecosystem, more and more innovative projects and technologies are emerging in this ecosystem, making the Bitcoin ecosystem gradually become one of the focuses of the crypto world. The guests at this panel jointly discussed innovative technologies, applications, and practical implementations in the Bitcoin ecosystem, and shared their thoughts on Bitcoin inscriptions, layer 2 solutions, NFT, DeFi, cross-chain technology, and other fields. Below are some highlights shared by the guests.

The guests believed that the positioning of Bitcoin is gradually changing from a “store of value role” that is generally believed to be a  “basic technology platform for building a trust-consuming financial system”. With Bitcoin hitting all-time high, many projects have developed and built new products in this ecosystem. From Bitcoin-based technologies such as UTXO, SegWit, and Taproot upgrades to current protocols such as Ordinals and Atomics, the underlying infrastructure has been built for the issuance of NFTs, Tokens, and other assets in the Bitcoin ecosystem.

However, due to the dilemma of Bitcoin's scalability and transaction confirmation time, if the ecosystem is to develop in the long term, expansion is a problem that all developers in the Bitcoin ecosystem need to face head-on. In terms of improving the scalability of Bitcoin, there are currently two main development routes. One is on-chain expansion, which is optimized on Bitcoin Layer1; the other is off-chain expansion, which is commonly understood as Layer2. Besides the asset issuance protocols and expansion plans, more projects are beginning to show up in the infrastructure field, such as wallets that support inscriptions, decentralized indexers, cross-chain bridges, launchpads, etc.

Regarding the view that "the Bitcoin Ecosystem is merely a replica of the Ethereum Ecosystem", the guests believed that even though there are similarities between the Bitcoin and Ethereum ecosystems, there are more fundamental differences.

From the perspective of initial design goals and core functionality of these two ecosystems, Bitcoin was designed first and foremost as a decentralized digital currency whose primary purpose is to serve as a means of payment and store of value. While the Ethereum is designed as a smart contract platform to expand the application scope of blockchain and support the development and operation of decentralized applications. This fundamental design difference determines the development direction and technical focus of the two ecosystems.

From the perspective of technological development, Bitcoin's blockchain technology pays more attention to security and stability, which is reflected in the conservative nature of its network operations and its consensus algorithm that values ​​long-term. In contrast, Ethereum focuses more on flexibility and scalability, especially in the implementation of smart contracts and decentralized applications. The robustness of the Bitcoin ecosystem has allowed it to be viewed globally as digital gold, rather than just as a payment method or application platform.

In addition, Bitcoin, as the first successful blockchain project, has a deep technical foundation and a group of loyal supporters and developers. This unique community culture and philosophy has shaped the development direction of the Bitcoin ecosystem, making it unique among many blockchain projects.

From a technical perspective, the guests believed that the EVM faction and the UTXO faction represent two different technical paths and design philosophies in the Bitcoin ecosystem. EVM faction focuses on providing smart contract functions compatible with Ethereum, which can attract more developers and enterprises to use the Bitcoin platform to create complex applications. The UTXO faction insists on the original simplicity and security of Bitcoin, and its method may be more suitable for users who value transaction reliability and network security.

The existence of the EVM faction and the UTXO faction also reflects the different views and needs of the Bitcoin community on the future development direction. The EVM faction aims to solve the limitations of Bitcoin in smart contracts and advanced applications, while the UTXO faction is more focused on optimizing and maintaining Bitcoin as a safe and reliable means of payment and value storage.

The co-existence of these two factions is not only possible but critical to the long-term development of the Bitcoin ecosystem. Their different advantages may find their way into different markets and applications, enriching and strengthening Bitcoin’s market position. While there may be some friction and competition in the short term, this diversification may be the Bitcoin ecosystem’s greatest asset in the long term.  

Guests believed that the Bitcoin Layer 2 ecosystem is booming, and there are three main routes for the second-layer construction of Bitcoin: One is the chain-based expansion route, which is similar to Ethereum's EVM and adopts a blockchain structure. The second is based on a distributed route, represented by the Lightning Network, using a distributed structure. The third is based on the route of a centralized system, represented by a centralized index, adopting a centralized structure. Each of these methods has its characteristics, and some products are already in practical application or under exploration.

0xVM is one of the Bitcoin layer-2 solutions. Kelvin mentioned that 0xVM, as the execution layer for Bitcoin, leverages Bitcoin as a robust data availability layer, inheriting its strong security consensus. Unlike other Layer-2 solutions, 0xVM does not require asset lockup or complex payment channels, ensuring assets remain fully secured on the Bitcoin network.

0xVM has several key features:

(1) Security

By leveraging Bitcoin as the data availability layer, all the 0xVM transactions are Bitcoin transactions. Asset consensus and security are directly inherited from the Bitcoin network. There is no need for cross-chain bridges or channels, eliminating the risks of contract vulnerabilities, and reducing complexity and risk.

(2) Scalability

Innovative batch instructions, instruction encoding optimization, and parallel execution mechanisms enable high execution speeds. EVM compatibility brings programmability and computation capabilities, delivering Solidity-equivalent programmability without relying on centralized rollup structures, introducing a dApp ecosystem to the Bitcoin network. Assists BTC L2 applications in directly validating data on the Bitcoin blockchain, enhancing interoperability and providing a foundation for composability.

(3) Cost-Efficient

The hybrid on-chain verification and off-chain computation architecture, powered by the Indexer component, dramatically reduces the computational and storage burden on the Bitcoin network, enabling significantly lower transaction fees for large-scale applications

As an EVM-compatible execution layer for Bitcoin, 0xVM empowers the network with Turing-complete smart contract functionality, unlocking a broader range of dApps within the Bitcoin ecosystem. It uses Bitcoin as a robust data availability layer to retrieve transaction contents on the Bitcoin chain that conform to the 0xVM protocol specification to obtain instructions, and executes them on the 0xVM, with 0xVM nodes verifying the output results.

Through innovative batch instructions, instruction encoding optimization, and parallel execution mechanisms, it delivers high-performance scaling for the Bitcoin network. In addition, 0xVM serves as a trustless verification layer that is for BTC L2 solutions to directly validate data on the Bitcoin blockchain. It enables Bitcoin to truly scale out through diverse L2 solutions and support interoperability between various L2 platforms.

The guests expressed their expectations for the development of the Bitcoin ecosystem. They think It is foreseeable that the Bitcoin ecosystem will have more innovative projects and diverse application scenarios. From NFT to DeFi to Layer 2 solutions, the Bitcoin ecosystem is constantly expanding and enriching, providing users with more choices and services.

In the future, with the continuous development of technology and the continuous expansion of application scenarios, they believe that the Bitcoin ecosystem will usher in a more prosperous development situation. Bitcoin will continue to play the role of digital gold and will also become the basic technology platform for building a more open, secure, and efficient financial system.

Special thanks to the following media for their support of the event: JinseFinance、ForesightNews、MarsBit、PANews、ChainCatcher、Cointime、COINVOICE、MetaEra、TechubNews.

Comments

All Comments

Recommended for you

  • Farcaster's social client Kiosk completes $10 million financing, led by Electric Capital

    Farcaster's integrated social client Kiosk has announced the completion of a $10 million financing round on the X platform, led by Electric Capital, with participation from a16z Crypto, USV, and Variant Fund. Kiosk aims to promote community building and commerce within applications, enabling creators to establish communities, share rich media content, mint NFTs, interact with like-minded individuals, and seamlessly customize channel economics, while emphasizing the integration of on-chain assets into social interactions and envisioning a more inclusive and interconnected Web3 experience.

  • A whale sold 224 WBTC worth $14.4 million in the past three hours

    According to on-chain analyst @ai_9684xtpa, address 0x486...1505e sold 224 WBTC tokens worth $14.4 million through Cowswap in the past three hours, making a profit of $830,000 (selling at an average price of $64,203). The seller had bought 371 WBTC tokens at an average price of $60,504 between November 2023 and April 2024, and still holds 280 WBTC tokens.

  • CryptoQuant CEO: BTC needs to remain above $80,000 for miners to remain profitable after halving

    Bitcoin mining revenue significantly decreased in May due to the impact of the fourth Bitcoin halving event. On May 1st, the total revenue from block rewards and transaction fees reached a new low of only $26.3 million.CryptoQuant CEO Ki Young Ju calculated that, based on current conditions, Bitcoin needs to stay above $80,000 for miners to remain profitable after the halving. However, most miners have taken proactive measures to upgrade their mining equipment to lower long-term operating costs and remain competitive.

  • BTC returns to above 65,000 USDT, up 2.08% in 24 hours

    OKX market shows that BTC has returned to above 65000 USDT, now reporting 65102 USDT, with a 24-hour increase of 2.08%.

  • Hundre Finance attackers have withdrawn 162.2 ETH worth of crypto assets from Curve

    According to PeckShield monitoring, the attacker of Hundre Finance withdrew 784,000 3Crv from Curve and exchanged it for 273 ETH. In addition, they also exchanged 305.6 WOO, 39 PAXG, 200,000 FRAX, and 100,000 DAI, totaling 162.2 ETH. The attacker then bridged 1,034 ETH (2.17 million USD), 842.8K DAI, 1.11 million USDT, 1.27 million USDC, and 457.3 FRAX from Optimism to Ethereum. They also exchanged a total of 480,000 USDC for 142.6 WETH, 306 WOO, and 39 PAXG. They also exchanged 1.11 million USDT for 500.3 thousand USD worth of DAI and 613.8 thousand USD worth of FRAX. Additionally, on April 15, 2023, approximately 786,000 USD worth of USDC was added to Curve3Pool.

  • LayerZero co-founder: "Self-reporting of witch activities" is not aimed at individuals, but at industrial witch studios

    Bryan Pellegrino, co-founder and CEO of LayerZero, stated on social media that the "Self-Report Sybil Activity" is not targeting individual users, but rather large industrial witch farms (studios).Earlier, LayerZero Labs launched the "Self-Report Sybil Activity" plan, which allows witch addresses to self-report related addresses on a designated page and receive an expected allocation of 15%, without answering any questions. The deadline is May 17th, 19:59:59.

  • Argentina’s House of Representatives Passes Bill to Regularize Cryptocurrency Taxation

    The Argentine Chamber of Deputies has passed a cryptocurrency tax normalization bill aimed at advancing a series of important government reforms. The bill introduces the possibility of regularizing previously undeclared cryptocurrency assets, up to a maximum of $100,000, without paying government collection fees. However, if the value of cryptocurrency assets exceeds this limit, the government will apply preferential tax rates based on the taxpayer's declaration date.

  • GNUS on Fantom was attacked, with a loss of about $1.27 million

    According to Beosin's monitoring, GNUS on Fantom was attacked, resulting in a loss of approximately $1.27 million. GNUS stated on the X platform that due to recent vulnerabilities, hackers were able to mint fake GNUS tokens on Fantom, transfer them to Ethereum and Polygon through the Axelar Bridge, and sell them to existing liquidity pools. We will take a snapshot of the blocks before the exploit. To ensure fairness, please do not purchase GNUS tokens after the exploit, as we will issue new tokens.

  • Pandu Financial Group received the first round of strategic equity investment of tens of millions of Hong Kong dollars, led by Longling Capital

    Pando Financial Group announced it has received tens of millions of Hong Kong dollars in strategic equity investment led by Longling Investment. Pando Financial Group stated that it plans to use the newly injected funds for key growth areas, including market expansion, innovative product development, key talent recruitment, and technology upgrades, aiming to accelerate the layout of opportunities in the era of virtual assets through these strategic initiatives. Currently, the group's asset management scale has reached $500 million. Pando Asset, a subsidiary of Pando Financial Group, established its headquarters in Zurich in 2022 and issued the Pando 6 spot virtual asset fund (Bitcoin/Ethereum spot ETPs) on the Swiss Exchange. Another subsidiary of Pando Financial Group, Pando Limited, obtained licenses from the Securities and Futures Commission in Hong Kong, including Type 1 (securities trading), Type 4 (advising on securities), and Type 9 (asset management), as well as public fund qualifications, and was approved to manage investment portfolios with more than 10% invested in virtual assets and issued several excellent performance actively managed ETF products.

  • Hong Kong Monetary Authority launches industry consultation on “renaming virtual banks as licensed digital banks”

    Hong Kong virtual banks released their annual reports for 2023 last week. The eight virtual banks collectively lost about 2.99 billion yuan last year, a decrease of about 12% compared to the total loss of about 3.4 billion yuan in 2022. In response to the occasional feeling of "unreality" brought about by the term "virtual" in recent years, the Hong Kong Monetary Authority has initiated a consultation on renaming with the eight virtual banks, the Hong Kong Bankers Association, the Hong Kong Restricted Licensed Banks and Deposit-taking Companies Association, with the aim of renaming virtual banks as licensed digital banks, for a period of one month. It is reported that in the Asian region, similar banks have different names in different places. South Korea and Singapore issue licenses under the name of "digital bank", with Singapore further dividing them into digital full banks (DFB) and digital wholesale banks (DWB).

Daily Must-Read

Popular Activities

Delysium $AGI & AI Private Yacht Party

Delysium $AGI & AI Private Yacht Party

March 27 - March 27
Seoul

Popular Tags

Cointime
News
Contents
RSS
Company