Cryptocurrency
BEVM Unveils Groundbreaking Taproot Consensus for Decentralized Bitcoin Layer 2 Solution
[PRESS RELEASE – Cardiff, 英国, May 26th, 2024]
On May 20, 2024, the Bitcoin Layer2 development team BEVM released the technical yellow paper titled “Taproot Consensus: A Decentralized BTC Layer2 Solution.” This paper details the implementation of Taproot Consensus, leveraging native Bitcoin technologies such as Schnorr signatures, MAST, and Bitcoin SPV nodes to build a fully decentralized BTC Layer2 solution. Taproot Consensus represents a significant leap in native Bitcoin scalability, combining existing Bitcoin technologies innovatively without modifying Bitcoin’s core code.
I. History of Bitcoin’s Technical Iterations
- October 31, 2008: Satoshi Nakamoto published “Bitcoin: A Peer-to-Peer Electronic Cash System,” introducing Bitcoin and the concept of SPV (Simple Payment Verification).
- January 3, 2009: Nakamoto mined the Genesis Block, launching Bitcoin. The original code used ECDSA for digital signatures instead of the more suitable Schnorr signatures, which were under patent protection at the time. Schnorr signatures retain all the functionalities and security assumptions of ECDSA and can surpass the 15-signature limit of ECDSA, enabling the management of Bitcoin with thousands of addresses without affecting signing speed.
- 2018: Bitcoin core developers proposed integrating Schnorr signatures into the Bitcoin network.
- November 14, 2021: The Taproot upgrade integrated Schnorr signatures and introduced MAST (Merkelized Abstract Syntax Trees), enabling smart contract-like capabilities and decentralized multi-signature management.
- The Taproot Consensus solution by BEVM builds on these advancements, combining Schnorr signatures and MAST to manage multi-signature addresses and enable complex business scenarios in Bitcoin Layer2.
II. Overview of the Taproot Consensus Solution:
The yellow paper begins by highlighting Bitcoin’s non-Turing complete nature and limited functionality for smart contracts. It argues for using Bitcoin’s existing capabilities to build a decentralized Layer2 solution rather than modifying Bitcoin Layer1.
BEVM’s Taproot Consensus combines Bitcoin’s Taproot technology (Schnorr signatures and MAST), Bitcoin SPV light nodes, and the BFT PoS consensus mechanism to create a decentralized and consistent Layer2 network.
III. Detailed Explanation of Taproot Consensus Architecture
The Taproot Consensus architecture comprises three main components: Schnorr+MAST, Bitcoin SPV, and Aura+Grandpa.
· Schnorr+MAST: Uses these technologies from the Taproot upgrade to achieve decentralized Bitcoin multi-signature management driven by Bitcoin code.
· Bitcoin SPV: Allows synchronization and verification of Bitcoin transactions without running a full node.
· Aura + Grandpa: Advanced PoS consensus protocols for Byzantine fault tolerance, ensuring high consistency among network nodes.
In the BEVM system, each validator holds a BTC private key for Schnorr signatures. The aggregated public key forms a MAST tree, enabling BTC transfers and inscriptions to the threshold signature address. Validators act as Bitcoin SPV light nodes, synchronizing the BTC network state securely and permissionlessly. Aura+Grandpa ensures the Layer2 network’s security and trustworthiness, with assets managed by BFT consensus.
The operating principle of Taproot Consensus is: “In the BEVM system, each validator holds a BTC private key for Schnorr signatures. The characteristic of Schnorr signatures enables efficient signature aggregation, thereby enhancing the system’s security and efficiency. The aggregated public key Pagg, generated through the Musig2 multi-signature scheme, forms a large MAST (Merkle Abstract Syntax Tree). After generating the root hash of the MAST tree, validators perform BTC transfers and inscriptions to the threshold signature address generated by the MAST tree, enabling the submission of data from the BTC mainnet to the BEVM network. Each validator also acts as a Bitcoin SPV (Simplified Payment Verification) light node, allowing them to securely and permissionlessly synchronize the BTC network state.”
IV. Other Technical Details in the Yellow Paper – True Decentralization
The yellow paper also details the implementation of Schnorr signatures, MAST, Bitcoin SPV light nodes, and Aura+Grandpa, providing a comprehensive technical outline for those interested in Bitcoin technologies. It explains the Musig2 implementation and contrasts with other BTC Layer2 projects like Mezo, which uses the tBTC protocol. Unlike tBTC, which relies on a network of nine signatories, Taproot Consensus integrates multi-signature networks with BFT PoS consensus, achieving true decentralization.
Moreover, the yellow paper explains the implementation process of Musig2 and the differences between other BTC Layer2 projects like Mezo and Taproot Consensus. Mezo’s underlying technical structure is based on the tBTC protocol, which uses Bitcoin multi-signature to construct a threshold signature network, offering strong consistency compared to traditional distributed networks. However, tBTC still relies on a network of nine signatories, whereas a truly decentralized system should be consensus-driven, combining multi-signature networks with BFT PoS (Byzantine Fault Tolerance Proof of Stake) consensus mechanisms. This is the difference between distributed networks and blockchains; distributed networks emphasize distribution but lack Byzantine fault-tolerant consensus, whereas blockchains, while also being distributed networks, are driven by Byzantine fault-tolerant consensus, achieving true decentralization. The Taproot Consensus solution adopts this more advanced design. By integrating Schnorr signatures, MAST, Bitcoin SPV light nodes, and Aura and Grandpa Byzantine fault-tolerant consensus mechanisms, it constructs a highly consistent and secure decentralized Layer2 scalability solution. This integration enhances the scalability and usability of the Bitcoin network and ensures the security and consistency of the BEVM network.
Conclusion
The BEVM team’s technical yellow paper comprehensively describes Taproot Consensus, a Bitcoin Layer2 solution built entirely on native Bitcoin technologies. It respects and innovates on Bitcoin’s original technological direction, making it a true evolution of native Bitcoin scalability technology. As the Bitcoin ecosystem evolves, solutions like Taproot Consensus will be crucial for its development, serving as major cornerstones for truly decentralized Bitcoin Layer2 solutions.
About BEVM
BEVM is the first fully decentralized, EVM-compatible Bitcoin Layer 2 solution. It allows Ethereum ecosystem DApps to operate on Bitcoin, using BTC as gas. BEVM enhances Bitcoin’s utility by providing a secure and scalable platform for decentralized applications. The system integrates advanced consensus mechanisms, cross-chain interaction, and robust data integrity to ensure a seamless experience. BEVM aims to innovate within the Bitcoin ecosystem by offering increased scalability, security, and compatibility with popular Ethereum tools and applications.
For more information, users can visit BEVm’s official website or follow BEVM on Twitter.
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Changpeng Zhao, the founder and former CEO of the world’s largest cryptocurrency exchange, has served his four-month prison sentence and has been released from custody as of Friday.
Although he has stepped down as the chief executive of Binance, he is still the largest stakeholder.
Recall the events that took place almost a year ago when the US Department of Justice announced a massive $4.3 billion settlement with the then-CZ-led exchange.
This came after years of investigations from different entities, and Binance, as well as its founder, pled guilty to willfully floundering the Bank Secrecy Act.
Zhao’s guild plea was for failing to implement a strong anti-money laundering (AML) program. He had to step down as the CEO of Binance and paid a $50 million penalty.
In late April, CZ was also slapped with a four-month prison sentence, which was a lot less than the requested three years. At the time, he said:
“I will do my time, conclude this phase, and focus on the next chapter of my life (education). I will remain a passive investor (and holder) in crypto. Our industry has entered a new phase. Compliance is super important. A silver lining of this whole process is that Binance has been under the microscope. And funds are SAFU. Protect users!”
His sentence was supposed to end on September 29, but because it falls on a Sunday, he was released on the last working day before the weekend – Friday.
Binance’s native token performed well during this week when CZ was supposed to be released. It’s up by 6% on a seven-day scale and sits well above $600. According to some reports, Zhao still owns about 64% of BNB’s total supply.
CZ has said before that he already has ideas of what to do upon his release from prison. Called Giggle Academy, the project will aim to provide free education in a gamified and adaptive manner.
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Cryptocurrency
Shiba Inu’s (SHIB) Price Shot Up to 3-Month High, Bitcoin (BTC) Touched $66.5K (Weekend Watch)
Bitcoin reacted well to the Friday US inflation data and jumped above $66,500 for the first time in nearly two months, before retracing slightly.
Several altcoins have produced impressive gains over the past day as well, led by the meme coin realm.
BTC Touched $66.5K
The business week started on a high note for bitcoin, which had already gained some traction after the US Fed’s rate cut on September 18. The cryptocurrency stood at $63,000 during the weekend and jumped past $64,500 on Monday.
However, it failed to maintain its position at first, and even though it jumped to that level again, the bears took control on Thursday and pushed it south to $62,700 (on Bitstamp).
Nevertheless, the apparent bullish run couldn’t be contained, and the cryptocurrency reversed its trajectory once again. This culminated yesterday evening when the asset soared to $66,500 for the first time since August 1. This came after positive inflation news from the US.
Although it has lost some traction since then and now sits inches below $66,000, its market capitalization remained above $1.3 trillion on CG. Its dominance over the altcoins has also increased slightly to 53.8%.
SHIB, PEPE Jump Again
The week belongs to the meme coins, especially the past few days. Shiba Inu emerged as the top performer on a few occasions and has soared by another 6% in the past 24 hours. Moreover, the second-largest meme coin neared $0.000022 earlier today for the first time in over three months. SHIB is up by 42% on a weekly scale.
PEPE is another notable gainer, having surged by 6.5% since yesterday and 36% since last Saturday. Other reps of the meme coins niche with massive gains include WIF, BONK, and FLOKI.
Ripple and Toncoin are also in the green on a daily scale from the larger-cap alts, and so are BNB, ETH, DOGE, and TRX, albeit in a more modest fashion.
The cumulative market cap of all crypto assets has increased slightly since yesterday and is above $2.420 trillion now.
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On-chain data provided by Lookonchain asserted that two prominent institutions have sent millions worth of ETH to exchanges, which could suggest trouble for the second-largest cryptocurrency.
Currently, Ethereum trades close to $2,700 after gaining 5% within the past week.
2 institutions are selling $ETH!
A wallet related to #Cumberland deposited 11,800 $ETH($31.88M) into #Coinbase 7 hours ago.#ParaFiCapital withdrew 5,134 $ETH($13.83M) from #Lido and deposited it into #CoinbasePrime 6 hours ago.
Address:… pic.twitter.com/zuOe68IIuJ
— Lookonchain (@lookonchain) September 28, 2024
As the tweet above reads, the two institutions in question are Cumberland and ParaFiCapital. The former deposited 11,800 ETH (worth almost $32 million) to Coinbase, while the latter withdrew 5,134 ETH (nearly $14 million) from Lido and sent the funds to Coinbase Prime.
Both of those transfers toward the largest US-based exchange happened in the span of a few hours earlier today.
Recall that ETH’s price tumbled hard in early-August under similar circumstances. Back then, another prominent ETH investor, Jump Trading, reportedly sold approximately $500 million worth of the asset, whose price tumbled by double digits in days.
A week later, the company sold a more modest portion of 17,000 ETH (worth $46 million at the time), and Ethereum’s price slipped once again, this time by around 3-4%.
Consequently, the question arises whether the deposits by Cumberland and ParaFiCapital will lead to similar price corrections for ETH, even though they are a lot smaller than Jump Trading’s first.
ETH has been on a roll lately, alongside the broader market, having surged by 5% weekly and trading close to $2,700 for the first time since the aforementioned correction.
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