Exploring L2 Transaction Fees and Bitcoin Scalability Solutions

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The chapter discusses the intricacies of L2 transaction fees, including dynamic fee calculations and the concept of a three-dimensional fee market. It also delves into implementing alternative bridges for Bitcoin roll-ups, exploring batch proofs and client proofs for data integrity and transaction validation. Additionally, it covers the choice of zk architecture for Bitcoin scalability, the limitations of Bitcoin's data capacity, and the settlement challenges in Layer 2 solutions.

In today's interview, Orkun, the Co-founder of Citrea, dives deep into the world of Bitcoin L2s and Citrea. He explains the differences between L2s, sidechains, and sovereign rollups, and discusses the trust assumptions and bridging mechanisms in the Bitcoin ecosystem. Orkun also shares insights on the design tradeoffs in the Bitcoin L2 space, the Citra VM, proof generation, and the bottlenecks and challenges faced by Bitcoin L2s. The conversation touches on the potential for Bitcoin to enable a real economy and the role of Citrea in empowering Bitcoin finance.

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Timestamps:

(0:00) Bitcoin L2 Overview

(7:55) Trustless VS Trust Minimized

(12:01) Wormhole Ad

(12:40) Pear Ad

(13:05) Citrea Bridging

(17:54) Design Tradeoffs in Bitcoin L2 Space

(23:37) Block Production & Centralization Risk

(34:40) L2 Execution Fee & DA Economics

(38:56) Proof Generation

(43:07) Static UTXO Sizes

(46:42) ZK Architecture & Bottlenecks

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Disclaimer: Nothing said on 0xResearch is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Ren, Sam, and our guests may hold positions in the companies, funds, or projects discussed.