Blockchain infrastructure & scaling updates
Short notes on L1 and L2 roadmaps, consensus changes, validator economics, MEV and scaling milestones.
however, even if CBDCs are implemented using blockchain - it's unlikely to be a public, permissionless blockchain like Ethereum
>50% of central banks in both, advanced and emerging economies are considering using DLT for wholesale CBDCs
this means that wholesale CBDC is likely to be implemented using some form of blockchain technology - much more likely than the retail CBDC
only 6% of advanced economies (AE) central banks and 40% of emerging economies (EM) central banks are considering distributed ledger technology (DLT) as an implementation layer for retail CBDCs
here, consider DLT = blockchain
91% of central banks are working on CBDCs, but not on a public blockchain
85 out of 93 central banks (≈94% of global economic output) are engaged in some form of CBDC work
however, don't expect CBDCs to be implemented on permissionless blockchains like Ethereum
there should be more blockchains running over mesh technologies like LoRA
this way you can keep the consensus and payments running even when internet is down
polynomial commitments (ZK) can be used to store-and-forward transactions
stablecoin issuers could intermediate the issuance process, so you don't need to get all credit institutions on-chain from the start
non-algorithmic stablecoin issuance already happens off-chain and presumes trust in a third party
this would just be faster. more liquidity
now imagine when credit institutions can tokenize new credit and allow automated stablecoin issuance backed by that credit
in practice it's code in smart contract that wraps one token with another
i created a similar project on an Ethereum hackathon ⬇️
https://github.com/iluxonchik/eth-lisbon-hackathon-23
now imagine when credit institutions can tokenize new credit and allow automated stablecoin issuance backed by that credit
in practice it's code in smart contract that wraps one token with another
i created a similar project on an Ethereum hackathon ⬇️
https://github.com/iluxonchik/eth-lisbon-hackathon-23
Part of Bitcoin's value derives from the total electricity cost of maintaining a decentralized, trustless, immutable ledger of transactions for >15 years
20% of GDP is spent on financial services. Blockchains remove intermediaries & improve efficiency
It's apples to oranges 🤷♀️ https:/
🚀🎧 Podcast covering #BRICS Currency on the blockchain is out!
🔗🔈:
🤖 Smart contracts & #DeFi are an ideal match for #BRICSPay showcased at #BRICS2024 summit. Podcast & article exply why
🎤 AI Audio created with NotebookLM https://
In summary, blockchain-based Tokenized Liquid Futures:
- Eliminate intermediaries
- Increase transparency
- Enhance liquidity
- Automate risk management
- Provide flexible capital deployment
Thus enabling a disruptive #DeFi use-case over its #TradFi equivalent
The smart contract automates risk management on-chain by:
1️⃣ Enforcing margin requirements
2️⃣ Handling liquidations
3️⃣ Ensuring contract settlement
Removing the need for trusted third parties and ensuring transparency 🛡️
The smart contract automates risk management on-chain by:
1️⃣ Enforcing margin requirements
2️⃣ Handling liquidations
3️⃣ Ensuring contract settlement
Removing the need for trusted third parties and ensuring transparency 🛡️
The tokenization of the long and the short positions of the futures contact allows for trading of the positions in a fully decentralized manner, without the need for need for a clearing house
This means no trusted entity or oracles are required, ensuring full decentralization
Smart contract on the blockchain tracks:
1️⃣ Deposited amounts for each party
2️⃣ Required deposits at each checkpoint
3️⃣ Maturity date
It uses this data to automatically enforce the increasing margin schedule 🔐
The margin in DeFi futures acts as:
1️⃣ Traditional margin, as in TradFi
2️⃣ Collateral hedging the counterparty risk
3️⃣ Under-collateralized assurance for a futures contract delivery
Daily/periodic settlement can be incorporated into the dynamic margin requirements
🔐 Smart contracts on the blockchain enable full tokenization of futures contracts
📈 Both long and short positions become tokens, representing a "promise of future asset or money"
This allows partial selling of positions, increasing liquidity, flexibility and reducing risk 💧
Futures pricing is deterministic, and its main goal is to prevent arbitrage:
💰 Futures Price = Spot Price * e^(rT)
- r: risk-free rate (e.g., $MINA staking yield)
- T: time to maturity
This formula approximates pricing at maturity in both TradFi and DeFi 🧮
🏦 Traditional futures require centralized clearing houses
On the blockchain, smart contracts eliminate intermediaries, enabling decentralized peer-to-peer agreements
Example: A contract to trade 1000 $MINA for 2000 $USDC in 1 year, regardless of future $MINA price 📊
Futures contracts serve crucial roles in finance:
1️⃣ Hedging against price volatility
2️⃣ Speculation on future asset prices
3️⃣ Price discovery for underlying assets
Smart contracts on the blockchain will disrupt this $1T+ market. Here's how ⬇️
👉 Learn more about Zero-Knowledge Proofs, their applications, and how they redefine privacy:
📍 zkLocus: https://zklocus.dev/
📖 Full article: https://illya.sh/blog/posts/privacy-is-a-myth-without-zero-knowledge-proofs/
💜 Let's build a Web3 future where privacy is the default, not an afterthought
🛡️ The result is an e-commerce platform that respects end-user privacy without sacrificing functionality 🎉
❌ There is no need to trade personal data for convenience
🙌 ZKP, Mina Protocol blockchain and zkLocus enable us to have both!
🟣 This entire solution can be implemented on Mina Protocol blockchain! 💪
💻 $MINA's zkApps enable efficient, scalable and verifiable computation powered by zkSNARKs
📍 Combined with zkLocus for geolocation proofs, we have all of the necessary components
🔐 Throughout this process, your name and address remain hidden from the e-commerce platform. 😌
🌍 The platform only knows a broad area, not your specific location
🪪 The processing center only gets your exact info when you choose to reveal it
📋 Here's how Mina Protocol blockchain fits into the picture:
1️⃣ zkSNARK circuits verifying camera code execution are stored on Mina
2️⃣ Commitments & ZKP circuits to the zkML model are also stored on the blockchain
3️⃣ All proofs from cameras are submitted & verified against them
🟣 Mina Protocol can implement the foundational layer 🚀
Verification keys that attest to the correct execution of the camera's code can be stored on $MINA 🔑
In practice, this involves commitments and ZKP circuits to the zkML model, thus ensuring the right one is used 🧠
🟣 Mina Protocol can implement the foundational layer 🚀
Verification keys that attest to the correct execution of the camera's code can be stored on $MINA 🔑
In practice, this involves commitments and ZKP circuits to the zkML model, thus ensuring the right one is used 🧠
🔐 zkSNARKs/zkSTARKs can be used to create ZK proofs that attest to the correct execution of the camera's code 📸
👮♀️ These proofs, representing an observation of a computation, ensure that non-suspicious video is discarded, thus preserving privacy
👉 Do not trust, verify 👈
Read the full article to dive deeper into how the BRICS digital currency can be realized as a cryptocurrency on a public blockchain. 📖
🔗 https://illya.sh/blog/posts/brics-cryptocurrency-blockchain/
Let's discuss! Share your thoughts below🗣️
🌟 By embracing public blockchains and ZeroKnowledge technologies, the BRICS digital currency can pioneer a new era of finance🔮
A more efficient, interoperable, decentralized, and inclusive financial system aligned with Web3 principles 🌍
🌟 By embracing public blockchains and ZeroKnowledge technologies, the BRICS digital currency can pioneer a new era of finance🔮
A more efficient, interoperable, decentralized, and inclusive financial system aligned with Web3 principles 🌍
🧩 Implementing the BRICS currency on a public blockchain reduces cost & complexity
The dynamic supply is controlled by smart contracts, while ZKPs bridge data from arbitrary sources 🌉
Demand is driven by incentives for participating in the BRICS economic network 💰
🧩 Implementing the BRICS currency on a public blockchain reduces cost & complexity
The dynamic supply is controlled by smart contracts, while ZKPs bridge data from arbitrary sources 🌉
Demand is driven by incentives for participating in the BRICS economic network 💰
🌍 Integrating zkLocus allows associating geolocation data with each BRICS transaction while preserving user privacy 🔒
zkLocus turns geolocation into a programmable real-world asset (RWA), enabling location-based fees and taxation📍
✨ Native on MinaProtocol
🔍 Let's explore how the BRICS currency can leverage these technologies:
✅ Dynamic supply mechanism via smart contracts
✅ Legal compliance on-chain using ZKPs
✅ Integration with DeFi and zkLocus for authenticated private geolocation
👉 A cryptocurrency for Web3
💡 While the original paper suggests the impossibility of realizing the BRICS currency as a cryptocurrency, we'll challenge it 🤔
A public blockchain with SmartContracts, combined with Zero-Knowledge Proofs (ZKP), provides a natural fit for the implementation 🧩
💡 While the original paper suggests the impossibility of realizing the BRICS currency as a cryptocurrency, we'll challenge it 🤔
A public blockchain with SmartContracts, combined with Zero-Knowledge Proofs (ZKP), provides a natural fit for the implementation 🧩
🌍 The BRICS digital currency aims to integrate with existing monetary systems, creating a unified economic area for member nations 🤝
Its value is algorithmically derived from various economic factors of the participating countries 📈
🚀 BRICS Digital Currency: Cryptocurrency on a Public Blockchain 🪙
In this article, we explore how the BRICS currency can be implemented on a public blockchain and challenge the claims made in "Digital Money Options for the BRICS" for Web3
🧵 Let's dive into the technical details of RandoMina: a protocol for provable random number generation on Mina Protocol blockchain blockchain written in 01JS! 🔢🔐
💡 Powering zkLocus
🔗 GitHub: https://github.com/iluxonchik/randomina/
⚡ Key Features:
🔀 Provable pseudo-randomness: VRF
🔒 Fresh & Tamper-proof: ZK and Mina Protocol blockchain
⚡ Efficient & scalable: zkSNARKs
🌐 Decentralized & trustless: $MINA
🔭 Transparent & auditable: OpenSource
🔒 RandoMina leverages the power of Zero-Knowledge (ZK) proofs to ensure random numbers are:
✅ Provable
✅ Secure
✅ Trustless
🌐 Built on Mina Protocol blockchain, RandoMina is tamper-proof and transparent! 🙌
🔗 Deep dive into ZKP protocols of zkSNARK/zkSTARK and how combined with the blockchain they enable a new Verifiable Computation model by providing a cryptographic observation of a computation👇
https://illya.sh/blog/posts/zksnark-zkstark-verifiable-computation-model-blockchain/
💡 When combined with the blockchain, zkSNARKs & zkSTARKs are disruptive:
🌍 zkLocus: geolocation RWA
🏥 zkSafeZones: Safeguarding civilians in warzones. Proposing to UN and ICRC
⚖️ Automated legal compliance on-chain
🕵️ Privacy-preserving AI systems
🛠️