techfeudalist on Nostr: I agree with your note. Yes, CTV does make it worse. Peter focused on the difference ...
I agree with your note.
Yes, CTV does make it worse. Peter focused on the difference in *cost* but he didn’t discuss the difference in *time*. Transactions through a private OOB API could be much faster than propagating a regular transaction through the entire network.
CTV opens up the potential to create financial marketplaces on Bitcoin. With CTV, you can run arbitrary code on chain, with the only exception being that you need to know in advance all the ways the program can return. You can use this to trade options, make atomic swaps, etc.
To learn more:
https://bitcoin.stackexchange.com/questions/106850/is-there-anything-specific-to-the-design-of-the-sapio-language-that-makes-it-wel
It seems that most bitcoiners have the impression that CTV is just “covenants” to make channel factories and payments better. I believe this is misleading. CTV is actually an advanced NEW smart contract platform that RUNS ON CHAIN.
Are you familiar with Uniswap and all the MEV opportunities created by financial trading and arbitrage?
https://www.coindesk.com/opinion/2024/07/09/mev-has-spread-to-bitcoin-in-subtler-forms-than-on-ethereum/
So, being able to trade quickly to front-run pending transactions can be profitable. CTV exacerbates the problem because it conducts everything on chain where it is visible because of the blockchain’s transparency. This trading wouldn’t be risk if it were conducted say on Liquid and later settled on bitcoin.
That article above ends with this quote:
“A fair conclusion to the preceding technobabble is this: The more complicated the thing you’re trying to do is, the more likely MEV will occur (just like in regular ol’ finance).”
I think this is true. If we add arbitrary code execution ON CHAIN, we are in uncharted waters.
Yes, CTV does make it worse. Peter focused on the difference in *cost* but he didn’t discuss the difference in *time*. Transactions through a private OOB API could be much faster than propagating a regular transaction through the entire network.
CTV opens up the potential to create financial marketplaces on Bitcoin. With CTV, you can run arbitrary code on chain, with the only exception being that you need to know in advance all the ways the program can return. You can use this to trade options, make atomic swaps, etc.
To learn more:
https://bitcoin.stackexchange.com/questions/106850/is-there-anything-specific-to-the-design-of-the-sapio-language-that-makes-it-wel
It seems that most bitcoiners have the impression that CTV is just “covenants” to make channel factories and payments better. I believe this is misleading. CTV is actually an advanced NEW smart contract platform that RUNS ON CHAIN.
Are you familiar with Uniswap and all the MEV opportunities created by financial trading and arbitrage?
https://www.coindesk.com/opinion/2024/07/09/mev-has-spread-to-bitcoin-in-subtler-forms-than-on-ethereum/
So, being able to trade quickly to front-run pending transactions can be profitable. CTV exacerbates the problem because it conducts everything on chain where it is visible because of the blockchain’s transparency. This trading wouldn’t be risk if it were conducted say on Liquid and later settled on bitcoin.
That article above ends with this quote:
“A fair conclusion to the preceding technobabble is this: The more complicated the thing you’re trying to do is, the more likely MEV will occur (just like in regular ol’ finance).”
I think this is true. If we add arbitrary code execution ON CHAIN, we are in uncharted waters.