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BTC145: Adam Back on Drivechains, Mining Hardware, & L1 scaling w/ James Macedonio (Bitcoin Podcast)

Aug 30, 2023

01:10:24

Snipd AI

Adam Back, an expert in blockchain scaling and mining hardware, and James Macedonio discuss topics such as building ASICs, testing the reliability of mining rigs, layer 1 bitcoin scalability, drivechains, and the need for more scripting on layer 1 for Bitcoin. They also explore the economic competition and technological advancements in Bitcoin mining, shortage of hosting capacity in the industry, analyzing Bitcoin mining hardware, channel splicing for layer two scaling, and the controversy around drive chains as a scaling solution.

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Episode notes

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Quick takeaways

Blockstream aims to develop a cost-effective and adaptable ASIC miner for Bitcoin mining.

The surplus of Bitcoin miners in the market has led to lower prices and negotiations for better deals.

Drivechains offer potential scalability solutions for Bitcoin, providing more options for users and accommodating different needs and use cases.

Deep dives

Blockstream's ASIC Miner Development

The podcast episode discusses Blockstream's efforts to develop their own ASIC miner. The speaker explains that Bitcoin mining is an economic competition to have low operating costs and electrically efficient miners. They highlight the continuous improvement in technology and the optimization of ASIC machines to perform a single task efficiently. Blockstream has bought specialists to help with the ASIC design and manufacturing process, and they aim to create a miner that is cost-effective and adaptable for future upgrades.

Introduction

2min

Bitcoin Mining: Competition and Specialization

15min

The State of Mining in the Bitcoin Industry

6min

Analyzing Bitcoin Mining Hardware

16min

Understanding Channel Splicing and Liquid Bitcoin Swaps

8min

Scaling Bitcoin and Controversy around Drive Chains

18min

Exploring Simplicity: Enabling Smart Contracting on Bitcoin's Base Layer

12min

Preston Pysh brings Blockstream's Adam Back and James Macedonio to the show. They talk about Blockstream’s efforts to develop their very own ASIC miner and what it takes to take something like that to market and all the challenges that are associated with it.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro

01:23 - Why is building an ASIC like building a high-performance race car?

10:02 - How do you think through production and reliability when building an ASIC?

10:02 - How can one test the reliability of an ASIC when its actual performance is always on?

15:05 - Why is there so much inventory of ASICs on the market right now?

24:29 - What is the Blockstream BASIC note?

24:29 - What was the performance of the previous Blockstream Mining Note and how is it different than the BASIC?

41:35 - Some people say layer 1 bitcoin might become too costly and layer 2 can't scale, what are your thoughts?

46:19 - What is Adam's thoughts on drivechains?

56:49 - Are there other blockchains that have experimented with OP CATs that were originally coded into Bitcoin but now are turned-off for safety reasons?

01:06:51 - Do we even need more scripting on layer 1 for Bitcoin to solve "clown world"?

01:08:02 - Are engineers being reasonable with the speed at which they want to roll-out updates?

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Adam Back's Twitter.
Information about the Blockstream BASIC note.
Information about the Blockstream ASIC they are building.
Information about Drivechains on Bitcoin.
Related episode: Listen to BTC054: A Sovereign Bitcoin Bond in El Salvador w/ Adam Back & Samson Mow, or watch the video.
Related episode: Listen to BTC040: Bitcoin ASIC Manufacturing by Blockstream w/ Adam Back & Samson Mow, or watch the video.

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