Date: Sun, 10 Sep 2023 20:04:19 +0000
To: Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
From: Dr Maxim Orlovsky <orlovsky@lnp-bp.org>
Message-ID: <XDPm1ve5FC6e68LI_ZK4f_oRGDArvptCDh1ofEXNNZV9TaTQ_XRALF2KIdIknQOw-TXKJHedJ-5xHi0sbipTrF7qIe4ynp2Qxp823BGcXcY=@lnp-bp.org>
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Subject: [bitcoin-dev] Trustless 2-way-peg without softfork
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Hi,

Several years ago my team from Pandora Project working on censorship-resist=
ant distributed machine learning proposed Prometheus: a protocol for high-l=
oad computing on top of Bitcoin. The protocol operates as a multi-party gam=
e setting where an oracle ("worker") is provided with an arbitrary computat=
ionally complex task (any Turing-complete computing, machine learning train=
ing or inference etc) and the network is able to reach a consensus on wheth=
er a result reported by the worker is true. The consensus is reached via op=
tional rounds of verification and arbitrage. The protocol is cryptoeconomic=
ally-safe, i.e. has a proven Nash equilibrium. The protocol was later trans=
ferred to LNP/BP Standards Association (https://lnp-bp.org) and was kept in=
 a backlog of what can be done in a future as a layer on top of Bitcoin.

I'd like to emphasize that Prometheus works on Bitcoin, requires just sever=
al Bitcoin tx per task, and _doesn't require any soft fork_. All economic s=
etting is done with Bitcoin as a means of payment, and using existing Bitco=
in script capabilities.

Link to the paper describing the protocol: <https://github.com/Prometheus-W=
G/prometheus-spec/blob/master/prometheus.pdf>

Only today I have realized that Prometheus protocol can be used to build cr=
yptoeconomically-safe (i.e. trustless) 2-way-peg on the Bitcoin blockchain =
without any soft-forks: a "worker" in such a case acts as an oracle for som=
e extra-bitcoin system (sidechain, client-side-validated protocol, zk rollu=
p etc) validating it, and the protocol will reach consensus on whether the =
state reported by the oracle is correct.

In other words, this is an alternative to BIP-300 and other similar soft-fo=
rks having the only purpose of doing 2-way pegs. It also enables the two-wa=
y trustless transfer of Bitcoins between Bitcoin blockchain, RGB and, in a =
future, potential new layer 1 called "prime" (to learn more about prime you=
 can check my Baltic Honeybadger talk <https://www.youtube.com/live/V3vvybs=
c1A4?feature=3Dshared&t=3D23631>).


Kind regards,
Dr Maxim Orlovsky
Twitter: @dr_orlovsky
Nostr: npub13mhg7ksq9efna8ullmc5cufa53yuy06k73q4u7v425s8tgpdr5msk5mnym

LNP/BP Standards Association
Twitter: @lnp_bp