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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After weeks of sideways movement and declining volatility, XRP is showing signs of life once again. The recent liquidity sweep and the break of key technical levels suggest a potential shift in momentum.
However, bulls still face several overhead resistances that could determine whether this is a short-term relief rally or the beginning of a more sustained uptrend.
By ShayanMarkets
The USDT Pair
On the daily chart, XRP has bounced strongly after sweeping the sell-side liquidity below the $2 level. That sweep was followed by a strong bullish engulfing candle, signalling aggressive buying interest from that zone.
The price has since reclaimed the 100-day moving average and is currently testing the 200-day MA and the descending resistance of the multi-month descending channel around $2.40.
A clean breakout above this zone could open the door toward the $3 resistance cluster. If momentum continues, bulls may even eye a rally toward the major supply area near $4.
However, failure to break this structure could result in another retracement back to the $1.60 demand zone. If that level breaks again without a new higher high, the structure would remain bearish. The RSI at 58 is also neutral-bullish, supporting a short-term continuation move, but not yet signalling overbought conditions.
The BTC Pair
XRP/BTC is still trading inside the descending wedge and hasn’t confirmed a breakout yet. The pair is hovering just beneath the wedge’s upper boundary and the key resistance zone at 2100 SAT, which is just below the 100 and 200 EMAs.
Despite several attempts to push higher, it has failed to break and close above this confluence. Until that happens, the downtrend structure remains intact, and the wedge is still in play.
If a rejection follows, we could see another drop toward the lower boundary near 1800 SAT. Moreover, the RSI sitting around the neutral 50 level signals indecision, making a confirmed breakout or rejection crucial for the next move.
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Cryptocurrency charts by TradingView.
Two Bitcoin (BTC) wallets that had been untouched for over 14 years suddenly moved their entire holdings of 20,000 BTC, worth around $2.18 billion, in a pair of rare transactions late Thursday.
On-chain data shared by Lookonchain shows that each wallet shifted 10,000 BTC within half an hour of each other, as they surprised market watchers who closely track such “Satoshi-era” movements.
Bitcoin OG Moves
The wallets originally received the bitcoin on April 3, 2011, when the price was just $0.78, meaning their holdings had appreciated by nearly 140,000 times since purchase.
At the time, the combined stash was worth about $15,600. The identity of the wallet owner or owners remains unknown, and it is unclear why the funds were moved now after over a decade of dormancy.
Such large, aged movements are rare and often trigger speculation about early miners, lost wallets being recovered, or potential institutional-grade sales. Although there has been no indication yet of a sell-off. In fact, Bitcoin’s price remained stable following the move, as it held above $108,000.
Market analysts are watching whether the world’s largest cryptocurrency can build enough momentum to test its record highs near $118,000 amidst the sudden reawakening of these early wallets.
“Rare and Meaningful On-Chain Footprint”
According to CryptoQuant, the transaction patterns suggest these movements are likely genuine transfers with the intention to trade, rather than internal wallet reorganizations or security-related address changes.
This event could even mark the largest on-chain transfer by holders inactive for over a decade, surpassing the previous record of 3,700 BTC moved during the market’s bottom following the FTX collapse. CryptoQuant, however, said that assuming all activity by old holders is automatically bearish for the market is incorrect and added,
“At this point, the intent behind today’s move remains unclear. What is clear, however, is that this is a rare and meaningful on-chain footprint – and one that could potentially signal increased volatility in the near future.”
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Cryptocurrency
Shiba Inu (SHIB) Outpaces Ethereum (ETH) and Pepe (PEPE): But Not in the Way You Might Think
TL;DR
Shiba Inu leads in centralization: a setup that poses risks of sudden price swings and contradicts crypto’s decentralized ideals.
SHIB shows mixed signals, as its price dips while burn activity surges by over 4,000% and tokens steadily flow out of exchanges, hinting at reduced sell pressure ahead.
SHIB is the Most Centralized?
According to a recent study conducted by Santiment, Shiba Inu’s top 10 wallets control a whopping 62% of the meme coin’s circulating supply.
The self-proclaimed Dogecoin-killers ranked first in that statistic, while the biggest stablecoin, USDT, came in second with 51.8%. Ethereum (ETH) is third, with its top 10 holders owning 49% of the supply, whereas PEPE is next with 39%.
SHIB might lead on this front, but that doesn’t necessarily mean that its investors and proponents should pop the champagne and celebrate. Controlling a significant portion of the supply contradicts the decentralized spirit of the crypto industry.
Additionally, this makes the asset more vulnerable to substantial price changes due to potential massive sell-offs or accumulation efforts.
“As a retail trader, it’s generally safer to hold coins with less supply held by the most elite whales. There is less risk of sudden dumps or price manipulation should an asset’s largest whales decide to exit their positions,” Santiment warned.
SHIB Price Outlook
As of this writing, the price of the meme coin stands at around $0.00001159, which is a 3% decrease for the past day. Its market capitalization has slipped to just under $7 billion, making SHIB the 24th-biggest cryptocurrency in the entire market.
Essential metrics, however, suggest that the price may be gearing up for a renewed rally. In the last 24 hours, the Shiba Inu team and community have burned over 13.4 million tokens, representing a 4,000% increase compared to the figure observed on July 3.
The ultimate goal of the burning mechanism is to reduce the supply of SHIB and potentially increase the asset’s value through scarcity.
Next on the list is the decreased supply of Shiba Inu tokens on centralized exchanges. Over the past month, there has been an evident shift from such platforms toward self-custody methods, which reduces the immediate selling pressure.
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