Title: Caliber
Translator: DeepTechFlow
In the complex field of financial technology, Bitcoin, as an innovative digital currency, achieves peer-to-peer direct transactions by bypassing traditional financial intermediaries. However, as it develops, Bitcoin also faces a series of inherent challenges, especially issues related to scalability and transaction throughput, which are the main obstacles on its path to broader application.
These challenges are not unique to Bitcoin. Although Ethereum is designed with more flexible application development capabilities, it also faces similar problems. To address these issues, many solutions have been proposed, such as sidechains, Layer 2, or payment channel networks. In the Ethereum ecosystem, Layer 2 is rapidly expanding, giving rise to various solutions such as EVM rollups, sidechains transitioning to rollups, and projects pursuing different degrees of decentralization and security. The security issues of Layer 2 solutions, especially asset protection and the ability to adapt to changes in the Ethereum blockchain, highlight a key trade-off: higher security often comes at the cost of sacrificing scalability and cost-effectiveness.
While Bitcoin has made remarkable progress in improving its functionality, it still faces significant challenges in developing Layer 2 solutions similar to Ethereum. The design limitations of Bitcoin are particularly evident in ensuring the security of Layer 2 solutions. Its script language functionality is limited, lacking Turing completeness, which restricts its ability to execute complex computations and support advanced features. This design choice prioritizes Bitcoin's security and efficiency but limits its programmability compared to more flexible blockchain platforms like Ethereum. Additionally, probabilistic finality may also weaken the reliability and speed required for Layer 2 solutions, potentially leading to issues such as chain reorganizations that affect the permanence of transactions. Although Bitcoin's design principles make it reliable and secure, these factors make it difficult for its Layer 2 systems to quickly adapt to new changes.
Segregated Witness (SegWit) and Taproot are revolutionary for Bitcoin. SegWit optimizes Bitcoin's infrastructure by separating signature data, improving transaction speed, and supporting rapid payment processing for the Lightning Network. Subsequently, Taproot introduces efficiency and privacy improvements by compressing transaction data and concealing transaction complexity. SegWit and Taproot have ignited a new wave of Layer 2 innovation, becoming the foundation for future Layer 2 designs and significantly expanding the functionality of Bitcoin as a digital currency.
Understanding Bitcoin's Layer 2 Solutions
The Trilemma of Bitcoin's Layer 2
In the increasingly expanding Layer 2 solutions of Bitcoin, we see many different systems emerging, aiming to improve scalability and adoption. These solutions provide unique methods to overcome Bitcoin's inherent limitations. Trevor Owens proposed a classification method, categorizing these solutions based on how they address the trilemma of Bitcoin's Layer 2, dividing them into off-chain networks, decentralized sidechains, and federated sidechains, each with unique approaches and trade-offs:
Off-chain networks: Prioritizing scalability and privacy but may pose challenges to user experience. For example, Lightning & RGB.
Decentralized sidechains: Introducing new tokens and consensus mechanisms to expand functionality but may complicate user experience and raise concerns about centralization. For example, Stacks, Babylon, Interlay, etc.
Federated sidechains: Simplifying operations through trusted federations to provide efficiency but may come at the cost of sacrificing Bitcoin's fundamental decentralization. For example, Liquid, Rootstock, Botanix.
This trilemma provides a useful way to classify Bitcoin's Layer 2 solutions but may not fully capture all the complex details of their designs. Additionally, it highlights the trade-offs of current solutions rather than insurmountable obstacles, indicating that these trilemma elements are part of the developer decision-making process.
For example, decentralized sidechains issue new tokens to increase security and promote network participation, which may make user interactions more complex and may not be welcomed by Bitcoin purists. On the other hand, federated sidechains choose to skip new tokens to make the user experience smoother and reduce internal resistance within the Bitcoin community. Another option is to use a full VM/global state, which allows the implementation of complex functionalities, including creating new tokens on smart contract platforms. However, this approach makes the system more complex and typically increases its vulnerability to attacks.
Technical Classification
From another technical perspective, we classify Bitcoin's Layer 2 solutions based on their primary technical features. This different classification method examines various technical details and structures, providing a detailed understanding of how each solution contributes to enhancing Bitcoin's scalability, security, and functionality. Each approach has its unique purpose, which is not conflicting and does not create a trilemma. However, each approach has its own advantages and disadvantages in terms of security and scalability. Therefore, some systems may combine these approaches. We will discuss this in detail in the next section of the article. Let's explore these categories:
Sidechains Using Two-Way Anchoring Protocol. These sidechains, like Layer 2, are connected to Bitcoin through a method called two-way anchoring. This setup allows Bitcoin to be transferred between the main chain and sidechains, supporting experimentation and implementing functionalities not directly supported by the main chain. This approach, by supporting broader use cases, enhances Bitcoin's ability to handle more transactions and different types of applications. The two-way anchoring mechanism plays a crucial role in transferring the value of BTC to sidechains. On these sidechains, developers have set up various environments; some choose to use an EVM-compatible ecosystem, while others opt to create a VM environment with their own smart contracts. For example, Stacks, Rootstock, Liquid, Botanix, etc.
Blockchain Rollups. This approach uses Bitcoin as a data storage layer, inspiring the rollup technology. In this setup, each UTXO acts like a small canvas that can store more complex information. Imagine each Bitcoin being able to store its detailed dataset, increasing not only its value but also expanding the types of data and assets Bitcoin can handle. It opens up a wide range of possibilities for digital interactions and representations, making the Bitcoin ecosystem more rich and diverse. For example, B2 network, BitVM
Payment Channel Networks. These networks are like express lanes in the vast landscape of Bitcoin. They help speed up a large volume of transactions on Bitcoin's side roads, reducing congestion and ensuring transactions are both fast and economical. For example, Lightning & RGB.
By breaking it down this way, we can gain a clearer understanding of how each tool helps improve Bitcoin, making it more scalable, secure, and multifunctional. Let's delve deeper into these tools:
Two-Way Anchoring Protocol
Two-way anchoring allows assets to be transferred between two independent blockchains (usually the main chain and a sidechain). This system enables assets to be locked on one chain and then unlocked or minted on the other, maintaining a fixed conversion rate between the original and anchored assets.
Understanding the Anchoring Process
Imagine you want to transfer assets from the main chain (such as Bitcoin) to a sidechain. The anchoring process is your starting point. Here, your assets are securely locked on the main chain, similar to depositing them in a vault to ensure their safety. Subsequently, a transaction is created on the main chain to confirm this lock. Upon recognizing this transaction, the sidechain mints an equivalent amount of anchored assets. This process is akin to receiving a certificate of equivalent value in a foreign land, allowing you to use your wealth in a new environment while ensuring the integrity and security of your original assets.
Guiding the Unanchoring Process
When you decide to restore the assets to the original main chain, the unanchoring process begins. This return journey involves "burning" or locking the anchored assets on the sidechain, indicating that these assets are held and no longer in circulation on the sidechain. You then provide proof of this operation to the main chain. Once the main chain verifies your claim, it releases an equivalent amount of the original assets to you. This mechanism ensures the integrity and balance of asset allocation between the two blockchains, preventing duplication or loss.
Implementation of Two-Way Anchoring Systems
Rootstock
RSK's two-way anchoring system is an advanced framework designed to seamlessly integrate Bitcoin with smart contract capabilities through the RSK platform. By using efficient transaction verification with SPV, robust federated models for transaction approval, and integrating SegWit and Taproot, RSK not only improves transaction efficiency but also closely aligns with Bitcoin's security model. Additionally, merged mining enhances the system's security and incentivizes more miners to participate.
RSK Federated Model. Pegnatories (a selected functional group) act as bridge guardians or trusted custodians in this federated model, ensuring that every anchoring and unanchoring process complies with the protocol. They can be seen as a guardians' committee, each holding a key to a collective vault. Their role is crucial—they ensure the integrity and consensus of every cross-bridge transaction, maintaining the secure and orderly flow of digital assets in this critical channel.
Segwit and Taproot. SegWit reduces transaction size and increases processing speed by separating signature data from transaction data. Additionally, combining Schnorr signature scheme, Merkelized Abstract Syntax Trees (MAST), and other enhancements from Taproot can make transactions more efficient and private.
RSK Merged Mining. In RSK's merged mining approach, miners simultaneously secure both the Bitcoin and RSK networks without additional computational requirements, enhancing RSK's security. This method leverages the mining strength of Bitcoin, providing additional rewards to miners, showcasing innovative use of existing blockchain infrastructure. However, the success of this integration depends on accurately aligning labels within Bitcoin blocks with RSK blocks, emphasizing the importance of detailed and precise execution to maintain the security and consistency of the interconnected networks.
Botanix
Botanix combines Bitcoin-based Proof of Stake (PoS) consensus and a decentralized EVM network Spiderchain's multi-signature architecture to manage Turing-complete smart contracts off the main chain. With Bitcoin as the primary settlement layer, Botanix ensures transaction integrity through advanced multi-signature wallets and off-chain cryptographic verification.
Spiderchain is a distributed multi-signature network responsible for safeguarding all actual bitcoins on Botanix.
Architecture: Spiderchain consists of a group of coordinating nodes (node operators and liquidity sources for the entire chain). It comprises a sequentially arranged multi-signature wallet responsible for managing asset custody within the network. Transactions within each wallet require approval from multiple coordinating nodes to ensure there are no single points of failure.
Dynamic Operations: For each new Bitcoin block, a verifiable random function (VRF) based on the Bitcoin block hash is used to determine the corresponding coordinating nodes for the upcoming "epoch" (defined as the period between Bitcoin blocks in the Botanix system). Subsequently, fairness and randomness of coordinating node selection are ensured by hashing the block hash with SHA256, applying modulo arithmetic with the number of active coordinating nodes (N). This ensures fair and secure allocation of operational tasks, minimizing centralization risks.
Two-Way Anchoring System: Multi-signature wallets play a crucial role here, requiring consensus among selected coordinating nodes to execute any transactions.
Anchoring Process: Users send Bitcoin to a new multi-signature wallet, which is securely locked. This action mints an equivalent amount of synthetic BTC on the Botanix chain. Creating this wallet requires agreement and signatures from multiple coordinating nodes, ensuring no single entity can independently control the wallet.
Unanchoring Process: Conversely, for unanchoring, synthetic BTC is destroyed, and the corresponding Bitcoin is released from the multi-signature wallet back to the user's Bitcoin address. This process is protected by the same multi-signature protocol and requires approval from multiple coordinating nodes.
PoS Consensus and EVM Implementation
Consensus: In Botanix's PoS system, coordinating nodes stake their Bitcoin to participate in the network. They are responsible for validating transactions and creating new blocks on the Botanix chain. The selection of these coordinating nodes is based on their staking and the randomization method mentioned in the Spiderchain section.
EVM Implementation: The EVM on Botanix supports all operations compatible with Ethereum, allowing developers to deploy and execute complex smart contracts.
Stacks:
The Stacks platform aims to expand Bitcoin's infrastructure to support smart contracts and decentralized applications (dApps) through innovative mechanisms such as sBTC two-way anchoring, Proof of Transfer (PoX), and Clarity smart contracts.
sBTC Two-Way Anchoring Protocol:
- Threshold Signature Wallet: This wallet uses a threshold signature scheme, requiring a group of predefined signers (Stackers) to collectively sign anchoring transactions. These Stackers are selected using a verifiable random function (VRF) based on the amount of STX they have staked and rotate once per cycle (typically every two weeks), ensuring dynamic membership and continuous alignment with the network's current state. This significantly enhances the security and robustness of the anchoring mechanism, preventing dishonest behavior and potential collusion, while ensuring fairness and unpredictability in the selection process.
Proof of Transfer (PoX):
- In PoX, miners transfer BTC to participate in the Stacks network, rather than burning Bitcoin as in Proof of Burn. This not only incentivizes participation through BTC rewards but also directly links the stability of Stacks operations to the verification security properties of Bitcoin. Stacks transactions are anchored in Bitcoin blocks, with each Stacks block recording a hash in Bitcoin transactions using the OP_RETURN opcode, allowing the embedding of up to 40 bytes of arbitrary data. This mechanism ensures that any changes to the Stacks blockchain require corresponding changes to the Bitcoin blockchain, benefiting from Bitcoin's security without altering its protocol.
Clarity: The Stacks blockchain uses the Clarity smart contract programming language to enforce strict rules, ensuring all operations are executed as defined to avoid unexpected outcomes, providing predictability and security for developers. It offers determinism, where the result of each function is known before execution, preventing surprises and enhancing contract reliability. Additionally, Clarity interacts directly with Bitcoin transactions, allowing the development of complex applications and leveraging Bitcoin's security properties. It also supports features similar to interfaces in other languages, aiding code reuse and maintaining a clean codebase.
Liquid:
The Liquid Network provides a federated sidechain for the Bitcoin protocol, significantly enhancing transaction capabilities and asset management. The core concept of the Liquid Network architecture is strong federation, consisting of a group of trusted functionaries responsible for block validation and signing.
Watchmen: Watchmen manage the anchoring process from Liquid to Bitcoin, ensuring every transaction is authorized and valid.
Key Management: Watchmen's hardware security module protects the keys required for authorized transactions.
Transaction Verification: Watchmen verifies transactions by confirming encrypted proofs that adhere to Liquid's consensus rules, enhancing security through a multi-signature scheme.
Anchoring Mechanism:
Anchoring In: Bitcoin is locked on the Bitcoin blockchain (using a multi-signature address managed by Watchmen), and the corresponding Liquid Bitcoin (L-BTC) is issued on the Liquid sidechain through cryptographic methods to ensure accuracy and security of the transfer.
Anchoring Out: This process involves destroying L-BTC on the Liquid sidechain and releasing the corresponding Bitcoin on the Bitcoin blockchain. This mechanism is closely monitored by designated functionaries called Watchmen, ensuring only authorized transactions can proceed.
Proof of Reserves (PoR): This is a crucial tool developed by Blockstream, providing transparency and trust in network asset holdings. PoR involves creating a partially signed Bitcoin transaction to prove control of funds. While this transaction cannot be broadcast on the Bitcoin network, it demonstrates the existence and control of the claimed reserves, allowing entities to prove their holdings without moving funds.
Babylon:
Babylon aims to enhance the security of PoS chains by allowing Bitcoin holders to stake their assets, integrating Bitcoin into the PoS ecosystem, leveraging Bitcoin's substantial market value without the need for direct transactions or smart contract functionality on the Bitcoin blockchain. Importantly, Babylon maintains the integrity and security of staked assets by avoiding the movement or locking of Bitcoin through vulnerable bridges or third-party custody.
Bitcoin Timestamping: Babylon uses a timestamping mechanism to embed PoS chain data directly into the Bitcoin blockchain. By anchoring PoS block hashes and key staking events in the immutable ledger of Bitcoin, Babylon provides a historical timestamp secured by Bitcoin's extensive proof-of-work. Timestamping on the Bitcoin blockchain not only leverages its security but also its decentralized trust model. This approach ensures an additional layer of security against long-range attacks and state corruption.
Accountable Assertions: Babylon utilizes accountable assertions to manage staking contracts directly on the Bitcoin blockchain, allowing the system to publicly expose a staker's private key in case of misconduct (such as double signing). This design uses chameleon hash functions and Merkle trees to ensure that a staker's assertion is closely related to their staking, enforcing protocol integrity through an encrypted accountability mechanism. If a staker deviates, such as by signing conflicting assertions, their private key is deterministically exposed, triggering automatic penalties.
Staking Protocol: A significant innovation of Babylon is its staking protocol, allowing for rapid adjustment of staking allocations based on market conditions and security requirements. The protocol supports rapid staking unlocking, enabling stakers to quickly move their assets without the long lock-in periods typical of PoS chains. Additionally, the protocol is built as a modular plugin, compatible with various PoS consensus mechanisms. This modular approach allows Babylon to provide staking services for a wide range of PoS chains without significant modifications to existing protocols.
Payment Channels and Lightning Network
Payment channels are designed to facilitate multiple transactions between two parties without immediately submitting all transactions to the blockchain. They simplify transactions in the following ways:
Opening: A channel is opened with a single on-chain transaction, creating a multi-signature wallet shared by both parties.
Transaction Process: Within the channel, parties transact privately, adjusting their respective balances through instant transfers without broadcasting to the blockchain.
Closing: The channel is closed with another on-chain transaction, settling based on the final balance from the most recently agreed-upon transaction.
Exploring the Lightning Network
Building upon payment channels, the Lightning Network extends these concepts to a network, allowing users to send payments across blockchains through connected paths.
Routing: Similar to finding a path through a city using backroads, the network can find a payment path even if you don't have a direct channel with the final recipient.
Efficiency: This interconnected system significantly reduces transaction fees and processing time, making Bitcoin suitable for everyday transactions.
Hash Time-Locked Contracts (HTLCs): The network uses advanced contracts called Hash Time-Locked Contracts to protect payments between different channels. This is akin to ensuring your delivery safely reaches its destination through several checkpoints. It also reduces intermediary default risks, making the network reliable.
Security Protocols: If any disputes arise, the blockchain acts as a judge, verifying the latest agreed-upon balance to ensure fairness and security.
Taproot and Segwit enhance the privacy and efficiency of the Bitcoin network, particularly the Lightning Network:
Taproot: Acts as an aggregator for Bitcoin transactions, bundling multiple signatures into one. This not only keeps off-chain transactions tidy but also makes them more private and cost-effective.
Segwit: Alters the way data is stored in Bitcoin transactions, allowing a block to contain more transactions. For the Lightning Network, this means opening and closing channels is cheaper and smoother, further reducing fees and increasing transaction throughput.
Script-Based Layer 2 Solutions
Scripting has sparked an innovation wave in Bitcoin's Layer 2 ecosystem. With the introduction of two groundbreaking updates (Segwit and Taproot), the Ordinals protocol was introduced, allowing anyone to attach additional data to the Taproot script of a UTXO, up to a maximum of 4MB. This development has led the community to realize that Bitcoin can now serve as a data availability layer. From a security perspective, scripting provides a new perspective. Data, such as digital artifacts, is now directly stored on the Bitcoin network, making it immutable and protecting it from tampering or loss due to external server issues. This not only enhances the security of digital assets but also embeds them directly into Bitcoin's blocks, ensuring their permanence and reliability. Most importantly, Bitcoin rollups have become a reality, and scripting provides a mechanism to add additional data or functionality to transactions off-chain while still relying on the security model of the main chain.
Implementation of Script-Based Layer 2 Solutions
BitVM:
BitVM utilizes a combination of optimistic rollup technology and cryptographic proofs. By moving Turing-complete smart contracts off-chain, BitVM significantly improves transaction efficiency without sacrificing security. While Bitcoin remains the underlying settlement layer, BitVM ensures the integrity of transaction data by cleverly leveraging Bitcoin's script capabilities and off-chain cryptographic verification. Currently, BitVM is actively being developed by the community. Additionally, it has become a platform for several top projects, such as Bitlayer and Citrea.
Script-Like Storage Method: BitVM embeds data into Tapscript using Bitcoin's Taproot, similar to the concept of the Script protocol. This data typically includes important computational details, such as the state of the virtual machine at different checkpoints, the hash value of the initial state, and the hash of the final computation result. By anchoring this Tapscript in an unspent transaction output (UTXO) stored at a Taproot address, BitVM effectively integrates transaction data directly into the Bitcoin blockchain. This approach ensures the persistence and immutability of data while leveraging Bitcoin's security features to protect the integrity of recorded computations.
Fraud Proofs: BitVM uses fraud proofs to ensure the security of its transactions. Here, the prover commits to the result of a specific input, and this commitment is not executed on-chain but indirectly verified. If a verifier suspects the commitment is incorrect, they can provide a succinct fraud proof, using Bitcoin's script capabilities to prove the commitment's falsehood. This system significantly reduces the computational burden on the blockchain, avoiding full on-chain computation, aligning with Bitcoin's design philosophy of minimizing transaction burden and maximizing efficiency. At the core of this mechanism are hash locks and digital signatures, which link assertions and challenges to actual off-chain computational work. BitVM adopts an optimistic verification approach—operations are assumed to be correct unless proven otherwise, enhancing efficiency and scalability. Ensuring only valid computations are accepted, anyone in the network can independently verify their correctness using available cryptographic proofs.
Optimistic Rollups: BitVM employs optimistic rollup technology to significantly improve Bitcoin's scalability by batch processing multiple off-chain transactions. These transactions are processed off-chain, and their results are periodically recorded on the Bitcoin ledger to ensure integrity and availability. In practice, BitVM processes these transactions off-chain and intermittently records their results on the Bitcoin ledger to ensure integrity and availability. Optimistic rollups used in BitVM represent a method to overcome Bitcoin's inherent scalability limitations, leveraging off-chain computational capabilities while ensuring transaction validity is maintained through periodic on-chain verification. This system effectively balances the load of on-chain and off-chain resources, optimizing the security and efficiency of transaction processing.
Overall, BitVM is not just another Layer 2 technology; it represents a potential fundamental shift in how Bitcoin scales and evolves. It offers a unique solution to address the limitations of Bitcoin, but further development and improvement are needed to fully realize its potential and gain broader acceptance within the community.
B2 Network
As the first zero-knowledge proof verification commitment rollup, the B2 Network enhances transaction speed and reduces costs for Bitcoin. This setup allows Turing-complete smart contracts to be executed off-chain, significantly improving efficiency. Bitcoin serves as the underlying settlement layer for the B2 Network, storing B2 rollup data. This setup allows for the complete retrieval or recovery of B2 rollup transactions using Bitcoin's script. Additionally, the computational validity of B2 rollup transactions is verified through zero-knowledge proofs on Bitcoin.
Significant Role of Scripting: The B2 Network utilizes Bitcoin scripting to embed additional data into Tapscript, including the storage path of rollup data, the Merkle tree root hash of rollup data, zero-knowledge proof data, and the hash of the parent B2 script UTXO. By writing this Tapscript into a UTXO and sending it to a Taproot address, B2 effectively embeds rollup data directly into the Bitcoin blockchain. This method ensures the persistence and immutability of data while leveraging Bitcoin's robust security mechanisms to protect the integrity of rollup data.
Enhanced Security with Zero-Knowledge Proofs: B2's commitment to security is further reflected in its use of zero-knowledge proofs. These proofs allow the network to verify transactions without exposing transaction details, thus protecting privacy and security. In the context of B2, the network decomposes computation units into smaller units, with each unit represented as a bit value commitment in a tapleaf script. These commitments are linked in a taproot structure, providing a compact and secure method for verifying transaction validity on both Bitcoin and the B2 Network.
Scalability Boost with Rollup Technology: The core of the B2 architecture is rollup technology, particularly ZK-Rollup, which aggregates multiple off-chain transactions into one. This approach significantly increases throughput and reduces transaction fees, addressing Bitcoin's most pressing scalability issues. The rollup layer of the B2 Network processes user transactions and generates corresponding proofs, ensuring transactions are verified and ultimately confirmed on the Bitcoin blockchain.
Challenge-Response Mechanism: In the B2 Network, after batch processing and verifying transactions using zk-proofs, nodes have the opportunity to challenge the batches if they suspect they contain invalid transactions. This critical stage leverages fraud proof mechanisms, and a conclusion must be reached before the batch continues. This step ensures that only transactions verified as legitimate can proceed to final confirmation. If there are no challenges or existing challenges fail within a specified time lock, the batch is confirmed on the Bitcoin blockchain. On the other hand, if any challenges are verified, the rollup is subsequently reverted.
Final Thoughts
Pros
Unlocking the DeFi Market: By enabling features such as EVM-compatible Layer 2 solutions, Bitcoin can enter the multi-billion-dollar DeFi market. This not only expands the utility of Bitcoin but also unlocks new financial markets that were previously only accessible through Ethereum and similar programmable blockchains.
Expanding Use Cases: These Layer 2 platforms support a variety of applications beyond financial transactions, including finance, gaming, NFTs, or identity systems, significantly expanding Bitcoin's original scope as a simple currency.
Cons
Centralization Risks: Some Layer 2 solutions' mechanisms may lead to increased centralization. For example, in mechanisms that require locking the value of BTC, unlike Layer 2 solutions on Ethereum, interactions between Layer 2 and Bitcoin are not protected by Bitcoin's security model. Instead, they rely on smaller decentralized networks or consortium models, which may weaken the security of the trust model. This structural difference may introduce failure points that do not exist in decentralized models.
Increased Transaction Fees and Blockchain Bloat: Data-intensive use cases (such as Ordinals and other scripting protocols) may lead to blockchain bloat, slowing down the network and increasing transaction costs for users. This could result in higher costs and slower transaction verification times, impacting network efficiency.
User Experience and Technical Complexity: The technical complexity of understanding and interacting with Layer 2 solutions may be a significant barrier to adoption. Users need to manage additional elements, such as payment channels on the Lightning Network or dealing with different token types on platforms like Liquid.
Dark Side
Regulatory and Ethical Issues: While the immutability of scripting is a technological advantage, it also raises potential regulatory and ethical issues. If the data is illegal, unethical, or simply incorrect, it poses significant challenges, leading to permanent consequences without recourse.
Impact on Fungibility: If certain bitcoins are "tagged" for non-financial data, it may impact their fungibility—each unit should be indistinguishable—potentially leading to certain bitcoins being less valuable or accepted than others.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
