Can zk-rollups help scale BTC???
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•A Long term Bitcoiner w/ an interest in permissionless sidechains.
•@AragonProject is where ideas like plasma, state channels, rollups & other scaling solutions started to be spoken about & researched within the ETH Community. 2/
ZK-Rollups on BTC
•Some parts of ZK-Rollups
for BTC could be practically identical to ETH.
•However the difference will be in how the smart contracts interact w/ user funds because of the difference in state models (the process of record keeping) between them. 3/
•Giving BTC orders of magnitude more scale in terms of transaction throughput. 4/
•Rollups on BTC will allow payments to be sent directly to any address regardless if they have a Rollup wallet.
•Like an email the payer knows the payee's address & sends the assets. 5/
•The shortcomings of BTC’s Lightning Network are fueling the need for Rollups.
•Rollups have 100% uptime compared to Lightning which has nodes go offline & can suffer from liquidity issues causing failed payments. 6/
•Theoretically Rollups allow full use of smart contracts & application as the BTC blockchain only needs to verify the proofs provided by the rollup which has done the computation.
•Even a lightning network that sits in a layer 3 protocol on top off Rollups. 7/
Layer 3 Protocols
•Layer 3 uses off chain data availability for plugging into ZK-Rollups further reducing the data needed to be submitted to the main chain.
•This is a slight security trade off that gives much higher throughput. 8/
•Has recently been much more open to the idea of Rollups after largely rejecting them in 2019 due to them coming out of the ETH Foundation.
•The Community has some choices to make about what kind of proofs will be allowed. 9/
•Some have expressed concerns for the potential for MEV bots & reordering the blockchain from within the proofs. 10/
BTC Base Layer
•Changes to the BTC Opcodes have to be made, allowing for the processing of Rollups.
•This does not mean there has to be a Hard Fork of the network. 11/
•A Soft Fork can achieve the changes needed (A Soft Fork is backwards compatible, so nodes will not have to update to keep validating the network).
•The enabling of Rollups on BTC has to be very thoughtful as any changes to the proofs would require another soft fork. 12/
•More experimentation & research is needed to see what makes sense?
•What is the minimum that can be changed?
•What use cases are opened up?
•What are the tradeoffs/potential attacks? 13/
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14/this twitter thread.