Opinion
A Zero-Knowledge Proof Is Verified on Bitcoin For The First Time in History
Published
4 months agoon
By
adminEarlier this year, Weikeng Chen and his partners at venture firm L2 Iterative decided to shift their attention to the bubbling Bitcoin ecosystem. Chen, a Chinese native, had taken notice of the growing interest in Bitcoin development from several large actors in the mining space who started backing different projects in the Ordinals and layer 2 space.
“I never really realized Bitcoin had a development community,” he says, half-joking.
Fast forward to last week, an open-source initiative led by himself, with sponsorship from infrastructure company Starkware, has achieved the first implementation of a zero-knowledge verifier using Bitcoin script.
In an industry where significant breakthroughs are few and far between, those involved in the effort are gushing about the significance of this milestone. Zero-knowledge proofs, they argue, are the key to unlocking Bitcoin’s programmability and scaling its use globally.
Behind this achievement is the remarkable journey of an outsider who picked up Bitcoin development just six months ago and has now coded arguably its most advanced piece of software. I interviewed Weikeng Chen to delve into his motivations, his collaboration with Starkware around OP_CAT and STARKs, and his perspectives on this new era of Bitcoin development.
Starting from scratch
A PHD graduate from UC Berkeley with a specialization in cryptography, Chen explained he began seeking an opportunity to contribute his technical skills to the industry to better position his firm with potential investors and companies. Despite his extensive engineering experience, he quickly realized that resources were scarce and the learning curve was steep. “A lot of the material out there is outdated and does not reflect the current state of development.” His affinity for zero-knowledge technology eventually led his research to focus on Bitcoin’s ability to perform the computations required for verifying zero-knowledge proofs.
As one rabbit hole led to another, Robin Linus’ work on the novel computing paradigm of BitVM came onto his radar. Interested in the potential of using fraud proofs to implement zero-knowledge systems compatible with Bitcoin, he started poking around the white paper and noticed some issues with some of the concepts involved in the system. “I sent a message to Robin asking a few questions about BitVM. My understanding of BitVM from that whitepaper was indeed dead wrong. I remember Robin’s first reaction was to ask me who had told me this,” he recalls laughing. This interaction sparked a brief but productive collaboration between Chen, Linus, and other researchers as they iterated on the original idea and looked for ways to optimize it.
“It was obvious to me that this method could be used to verify zero-knowledge proof so my work quickly went in the direction of implementing a SNARK verifier.”
A verifier is a cryptographic tool that enables the verification of zero-knowledge proofs on the Bitcoin network.
The OP_CAT opportunity
Around the same time, a team at zero-knowledge industry giant Starkware was paying close attention to the emerging activity coming out of the Bitcoin community. For some, it was a long time coming. Starkware founder Eli Ben-Sasson was arguably the first person to discuss zero-knowledge technology in the context of cryptocurrencies at an early Bitcoin conference. Almost a decade later, Starkware’s research and ZK-STARK technology serve as the foundation of a growing number of applications in the space.
“Back in 2013, when I suggested using validity proofs to scale Bitcoin, I was hoping Satoshi might still be around and would make it happen faster. Thanks to cryptography visionaries like Weikeng Chen and Bitcoin OP_CAT researchers like Andrew Poelstra and Ethan Heilman, my 11-year old dream feels now within reach,” Ben-Sasson commented.
Last month, the company announced they were beginning the deployment of numerous initiatives focused on closing the technology gap between Bitcoin and zero-knowledge proofs. A $1,000,000 application grant was offered towards research and exploration into the potential of the OP_CAT soft fork proposal.
The announcement was marked by notable enthusiasm, leaving some to wonder what was driving this optimism. Until recently, the prospects of zero-knowledge technology on Bitcoin had been mostly an afterthought — another OP code that might never see the light of day. Indeed, the difficulty of getting consensus over smaller changes to the Bitcoin codebase made it seem unlikely something more complex would ever come to pass.
Based on conversations with Starkware contributors, it was around May when they caught wind of Weikeng’s progress on BitVM and the mood shifted dramatically. As it would turn out, the developer had already set his sights on the company’s Circle STARKs technology. In a paper released a couple of months ago, Chen had already identified the latter as a “Bitcoin-friendly proof system.”
After some back and forth, both parties agreed to come together and stand up a joint effort dedicated to an open-source implementation of a STARK verifier using the OP_CAT primitive. “I knew it could be done. We just needed to put all the pieces together,” suggests Chen. The “Bitcoin Wildlife Sanctuary” was born.
Two months later, the project appears to have reached its goal thanks to the collaboration of other developers like Pingzhou Yuan, another early BitVM contributor. Late morning last Friday, Chen jumped into the project’s Telegram group to break the news to other participants: “I think I finished the job!”
Following successful local tests, the developer broadcasted a series of transactions to Bitcoin’s Signet testnet network that would execute the entire script. To optimize on-chain usage, the STARK proof, based on Starkware’s open-source Stwo implementation, is split into concurrent transactions chained together using an OP_CAT based covenant.
At 6:29AM on July 12, 2024, the final transaction was confirmed on the Signet network, signaling what proponents believe could be the beginning of a new era of development on Bitcoin.
“This was a tremendous effort and took a significant amount of time,” said Chen. “We started with nothing. There’s no information about ZK proofs on Bitcoin. There’s no information regarding the mathematical operations to follow. We had to build the full stack, which eventually led to the implementation of the STARK verifier.”
Inspiring a new development path
While the results deserve to be celebrated, Chen is insistent the job is not done. Asked if he was optimistic about his work creating the foundation for new scaling protocols like rollups on Bitcoin, the developer was quick to tamper expectations.
“The idea roughly works but the proof-of-concept is not production-ready. Validity proofs also take a lot of block space which might turn out to be expensive in the future.”
Contributors at Starkware acknowledge the challenges ahead but are confident the success of the project represents “a monumental leap forward” towards Bitcoin scaling solutions that can leverage their ZK rollup technology.
One thing is for sure, the collaboration is likely to further strengthen arguments in favor of a potential OP_CAT soft fork. In order to put together the verifier implementation, Chen says he had to develop a reliable framework for covenants using CAT which can serve to highlight the versatility of the script improvement proposal. He believes other developers in the ecosystem can play with his code and come to the same conclusion he did regarding its benefits.
“I don’t think there is a lot of risk once we have developed best practices. There are not that many places where this is going to go wrong. We now have a clear demonstration that OP_CAT can be adapted to various covenant projects in a safe way.”
When questioned about his intention to contribute to a future activation process, the developer readily admits he is not familiar enough yet with all of the dynamics around Bitcoin open-source development. Next, he intends to share his progress with members of the development mailing list and hopes others will be able to contribute review, and provide feedback on his work.
Reflecting on his experience so far, Chen immediately points out the importance of creating a fertile environment for new developers entering the ecosystem. He believes many talented developers are passing on the opportunity to build on Bitcoin because of the lack of a cohesive vision.
“There is not a clear sense of direction right now which leaves contributors perplexed about their ability to impact the future. Hopefully, the emergence of new tools and primitives can improve this situation so Bitcoiners are allowed to dream again.”
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$100k
Why $100,000 Bitcoin Is Right Around The Corner
Published
12 hours agoon
November 19, 2024By
adminIf you have been following Bitcoin news today, like I have, you can not be more bullish on Bitcoin. Seriously, what a time to be alive!
Just today:
- MicroStrategy purchased another 51,780 BTC for $4.6 billion and announced its plans to raise $1.75 billion to buy more bitcoin
- Semler Scientific bought another 215 BTC for $17.7 million
- Genius Group launched its Bitcoin treasury by purchasing 110 BTC for $10 million
- MARA Holdings announced a $700 million raise to buy more BTC
- Metaplanet issued ¥1.75B debt offering to buy more BTC
- Global healthcare group Cosmos Health adopted BTC as a treasury reserve asset
Insane, right?
The corporate Bitcoin adoption is going absolutely parabolic. The race among public companies to stack the most satoshis has kicked into hyperdrive.
Some other news:
- Donald Trump is meeting with Coinbase CEO Brian Armstrong and is expected to discuss appointments
- Donald Trump’s media $DJT in talks to purchase crypto trading platform Bakkt
- Options trading on BlackRock’s spot Bitcoin ETF could be listed as soon as tomorrow
It’s only Monday, and my head is already spinning! With this tidal wave of positive adoption, I’d be downright shocked if we don’t blast through $100,000 per Bitcoin this week.
I expect a flood of more bullish news and serious FOMO buying pressure this week. Seriously, tighten your seatbelts, folks—with this momentum, Bitcoin hitting a hundred grand is coming sooner than you imagined!
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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A co-worker recently told me about NiHowdy, a platform that helps you save on prescription medication while earning bitcoin rewards in the process.
For context, I’m a fan of bitcoin rewards programs like Fold, which let you earn bitcoin for making everyday purchases (I can’t help but appreciate deals like this — I grew up with a coupon-clipping mom.) I also like that NiHowdy differentiates itself from other bitcoin rewards companies by offering a discount on a product.
While I’ve yet to use NiHowdy, it seems fairly simple to do so. You simply sign up through the company’s website, where you’ll obtain either a discount card or a QR code that can be scanned at selected pharmacies. You can also use the website to compare prices and find the cheapest locations to purchase prescription medication (the company is also working on a mail-order service).
When you pay for your prescription, you’ll earn 3% back in bitcoin, which automatically gets deposited into your Coinbase account. (While I’d prefer NiHowdy had partnered with a different exchange, as I don’t like how Coinbase partners with government agencies to surveil transactions, this isn’t a deal breaker for me.)
NiHowdy sees itself as fighters of Big Pharma…
At Nihowdy, we're not just a prescription savings platform. We're warriors in the battle against big pharma, fighting for your right to reclaim the savings that are rightfully yours. #NiHowdy #PrescriptionSavings
Join us in reclaiming the savings that belongs to you. 💪💊 pic.twitter.com/rTP3MgUWLZ
— NiHowdy (@nihowdyrx) May 31, 2024
…which I’d say is a bit of a stretch, but it does seem to provide a good way to save money on potentially burdensome prescription drug costs while at the same time stacking sats.
The ultimate hack here would be if you could use your Fold debit card to pay for your prescriptions, earning some extra sats on top of the 3% back in sats you earn through NiHowdy.
If that’s possible, I might get so pumped that I’ll need to go and refill my sedative prescription.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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Bible
Would Jesus Be Bitcoin's Biggest Fan? A Holy Take
Published
24 hours agoon
November 18, 2024By
adminDid you know the Bible is practically a financial thriller? Yep, it’s got more money talk than a Wall Street boardroom—over 2,300 verses on cold, hard cash. That’s right, the Good Book might as well have been the Good Ledger, with more mentions of money than heaven and hell put together. So, in the spirit of financial enlightenment and a dash of divine humor, let’s ponder a celestial question: Would Jesus have been a Bitcoin enthusiast?
In the cosmic comedy of finance, Bitcoin burst onto the scene like a rebellious angel, vowing to overthrow the old guard of dusty banks and sneezy central bankers. With its blockchain chariot and peer-to-peer prowess, Bitcoin promised a financial utopia: freedom from restrictive permissions, the tyranny of borders, and the inflationary antics of print-happy central banks. But as this digital David takes on the Goliath of traditional finance, one can’t help but wonder: Would Jesus be sporting a “Satoshi Nakamoto” T-shirt?
Jesus had a lot to say about wealth, and not all of it was about giving it all away. He was into fairness, helping the needy, and not letting your left hand know what your right hand’s up to—basically, the first-century version of anonymous transactions. Enter Bitcoin. With its knack for bypassing the money changers of today (looking at you, central banks), could Bitcoin be the modern answer to ancient prayers?
But let’s not convert all our loaves and fishes into Bitcoins just yet. Jesus also warned about the love of money being a root of all kinds of evil. And with Bitcoin’s rollercoaster value, it’s more bipolar than a Galilean storm. Would JC be cool with something that turns investors into overnight millionaires or leaves them crying into their keyboards? Divine verdict: probably not.
Jesus was all about helping the little guy, and Bitcoin’s decentralized gospel sings a similar tune. It’s a financial lifeline for the unbanked masses, promising escape from the clutches of overbearing governments and hyperinflation hellfires. But here’s the heavenly hiccup: Bitcoin’s not exactly the Robin Hood of crypto. Its kingdom is a tad unequal, with a few digital disciples holding the lion’s share of the coins.
In the beginning, Satoshi Nakamoto created Bitcoin. And it was good. Fast forward a few millennia (in internet years), and Bitcoin’s disciples are spreading the good news far and wide. Like Jesus’ OG crew, they’re on a mission to liberate the financial faithful from the Romans—err, central banks—of our time. But instead of crosses, they bear the mark of the Bitcoin, preaching the blockchain gospel of hope and financial freedom.
Despite being crucified by critics more times than we can count, Bitcoin keeps rising from the dead. Its resilience mirrors the biblical tales of underdogs and persecuted heroes, proving that sometimes, faith (and a good encryption algorithm) can move mountains—or at least market caps.
Picture this: Jesus mulling over the Bitcoin craze. It’s not just water into wine; it’s transforming the financial system. Would He be a fan? You bet! Jesus, with His knack for shaking up the status quo, might just see Bitcoin as the loaves and fishes of the digital age—multiplying financial access for the masses and sticking it to those temple-money-changer types, a.k.a., the centralized banks of today.
Imagine Jesus in today’s digital marketplace. He’d likely be intrigued by Bitcoin’s potential to empower the least among us. After all, here’s a technology that transcends borders, cuts out the financial middlemen, and offers a beacon of hope to those sidelined by traditional banking systems. Bitcoin’s blueprint for a more inclusive economy might just get a celestial thumbs up.
But would He dive headfirst into the speculative whirlpool? Probably not. However, He might champion the underlying principles—freedom, equity, and the chance for everyone to participate in the global economy. Jesus, the carpenter, was all about building things up, not tearing them down. In that light, Bitcoin could be seen as a tool, not just for wealth creation, but for forging stronger communities through shared economic opportunity.
As we tread the ethereal pathways of cryptography and conscience, let’s ponder a Jesus-inspired approach: balancing our digital dollars with acts of kindness, generosity, and a commitment to uplifting others. The ledger of life isn’t just about accruing Bitcoin; it’s about the wealth of our actions and the currency of our character.
So, while diversifying your earthly portfolio, remember the most precious investment of all: love and goodwill. After all, in the grand scheme of the universe, those are the assets that yield the highest return. And who knows? In the grand, interconnected network of humanity, we’re all part of a greater blockchain, each of us a link in a chain of acts of kindness, stretching out into eternity. Now that’s an investment strategy even Jesus might endorse.
This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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