https://x.com/realsatoshix/status/1905066128868790603?s=46
To Add
A two paragraph technical argument for a Layer 0 interoperable utility token which makes the Bitcoin blockchain better:
Bitcoin's dominance faces a challenge: limited functionality within its siloed ecosystem. Here's where a Layer 0 interoperable utility token can make a significant difference. By enabling seamless two-way communication between Bitcoin and other blockchains, such a token unlocks a range of benefits: Enhanced DeFi Integration: Users could leverage DeFi applications built on high-throughput blockchains without leaving their Bitcoin holdings behind. The token would act as a bridge, allowing users to collateralize their Bitcoin for loans, participate in yield farming opportunities, or gain access to innovative financial products, all while maintaining the security and value proposition of the Bitcoin network.
Improved Scalability and Efficiency: By facilitating off-chain transactions for specific use cases on other blockchains, the interoperable token can alleviate scalability pressures on the Bitcoin network. This allows Bitcoin to focus on its core strength – secure value storage – while enabling faster and more cost-effective transactions for everyday use cases handled by the Layer 0 token. This division of labor within the broader blockchain ecosystem can optimize the overall user experience for both Bitcoin and other blockchain applications
The Lightning Network can be used between Bitcoin’s blockchain and other blockchains through a mechanism known as “cross-chain atomic swaps.” Here’s how it works:
Cross-Chain Atomic Swaps: This allows for the instant transfer of assets between different blockchains. It uses a smart contract technology that enables the exchange of one cryptocurrency for another without needing to trust a third-party intermediary. Payment Channels: The Lightning Network creates private payment pathways between two parties. These channels facilitate rapid, mutual exchanges of Bitcoin and can be extended to other blockchains, allowing for interoperability. Layer 2 Solution: As a layer 2 solution, the Lightning Network operates on top of a blockchain (like Bitcoin’s) but can interact with other blockchains to enhance transaction capacity, speed, and reduce costs. The key to using the Lightning Network for interoperability is the compatibility of the other blockchain with the Lightning protocol or similar layer 2 solutions. This ensures seamless transactions across different networks.
So that 3rd-party companies/individuals don’t in-future start purchasing, gaining questionable-rights-to or bartering past, current and future time-stamped blockchain blocks – further (or additionally) classify them each individually as “.block” within an interoperable, multi-blockchain web5 transactional environment (D.O.R.O.T.H.Y.)
Layer 0 Blockchains (seamless exchange of data/value between otherwise independent blockchains, Layer 1/2 platforms)
Offers a more robust and evolved alternative to smart contracts
First layer among all blockchain protocols
Can be used across several use cases data validation
setting up individual reward structures
digital currency wrapping
Serves as root layer, allowing cross-chain interoperability with all Layer1 protocols like BTC, ADA, ETH, etc
Operators can quickly deploy relay networks across several nodes
Unlock new opportunities for innovation, development
Promote more collaborative, interoperably ecosystem
Greater efficiency and scalability in blockchain industry
Can help to power novel use cases that can take advantage of unique properties of multiple different blockchains
ATOMIC SWAPS
move assets from one chain to another (w/out need for trusted intermediary)
cross-chain liquidity pools
inter-chain asset trading
CROSS-CHAIN DATA ORACLES
Cross-Chain Interoperability Protocol (CCIP)
helps blockchains receive/exchange data from oracle nodes
BRIDGES
Custodial
Non-Custodial
Cross-Consensus Exchange Format (XCM)
Off-Grid Mining (?)
Transparent Torrification (?)
Combining the Outputs Ensemble Method (?)
https://www.btcpolicy.org/articles/digital-identity-in-the-us-is-broken
Porting over of old/legacy technology to Blockchain?