Bitcoin Renaissance: Technical Improvements and Comeback with Matt Ye of Lorenzo

Transcript

you know why is Bitcoin making a comeback what's what was the Catalyst for this uh this new renewed interest in Bitcoin particularly Bitcoin l2s leveraging Bitcoin and defi Etc yeah so I think there are there are a few different reasons right so first of all Bitcoin is supposed to be playing a like a bit way bigger roles than it is doing as of today if you think about like the total market cap Bitcoin is like more than half of the entire industry so it's just like a an elephant a room that uh people knows it but just haven't figured out like a smart way to really put Bitcoins into good use so that's kind of kind of the problem here or the situation here for a very very long time so the reason why this year it

is like becoming the thing is that so A few things so starting from last year there's been like inscriptions and a few different assets could be issued on top of like Bitcoin Network and get people to think about actually Bitcoin can do a lot more things than just uh you know just like storing values and keep it as a gold on chain and also uh for example the ETF pass for Bitcoin as well which gives like the market a clear signal that the so I mean the mainstream let's say Wall Street or say like these uh financial institutions uh and these big corpse they're accepting uh Bitcoins as a mainstream assets which also creates a very good ground for people to think about okay then what's next if everybody agrees this is a legit currency uh this

is like the the next uh biggest smart money so and also Al given how big the market cap is so how what are the reasonable next steps how can we put them into good use right so that's a market to go to and a lot of people started working on it so that's also another another good thing and uh and I think Bon plays a very important role to to acting as a catalyst in here is that so with like bablon actually I mean like if you want people to put BDC into good use you you have to like first you have to educate them and also two you have to incentivize them right so what are the what are the return you're going to get what are the rewards you're going to get like why you should be doing that so bin provides a

very good uh solid uh risk-free yield sources that uh stakers could actually gain yield and risk-free yield by mobilizing and utilizing their Bitcoin liquidity so this is actually like a very good thing layser very good fun fundamentals so then we bued liquid staking on top of that to free this part of liquidities and distribute into distribute the liquidity into all kinds of ecosystem then the whole kind of workflow just makes whole lot of more sense than that yeah what are the technical improvements on bitcoin if if any that have made all of this possible like the the inscriptions but now this you know this this wave of Bitcoin l2s Babylon uh Lorenzo like H how is this

possible now where it wasn't possible say like four or five years ago yeah I think there are a few uh like very very important updates uh in the like upgrades in the last uh few years and also month as well so I think the two biggest one is the S WD upgrade which allows like a bigger uh storage for each block for you know in op return space which you can put into more data so that allows inscription and many others uh good things to happen the other thing is like the tpro upgrade and also tpro scripts so with taper scripts is actually enhanced it's not still not fully to and complete but it enables like more programm abilities on top of Bitcoin which I think uh also bablon is benefiting from it as well so then they

could bu uh more complex systems on top of that yeah yeah okay and then there's this uh you know we we were both at this um this this Bitcoin event also in Hong Kong a couple weeks ago and people were telling me about uh this new thing called concatenation can you explain what that is and how it enables new features on bitcoin yeah so I I mean I'm not like truly expert expert expert on on this opcat so uh the reason for that I I think the value in it is so first of all it's like a the abbreviation of concat concatenation so it basically like combines like different uh contacts into one so if you like go through all of the operation instructions in a Bitcoin

scripts native scripts it's uh in most cases it's like binary input so you have this operator and you get like only two inputs with that right so it's pretty much impossible for you to uh for you to kind of having like infinite have like list or like having like a very long kind of data input into it it's not uh readily possible for you to do it immediately on that but uh with OP CAD you can actually combine like longer datas into it I think the value for that is so before that in input you can only have like one data but while with opad it it makes it possible uh for you to do like a list of data into the input so every programming languages it will have like a the row data type and also the

list of the data type which like that's pretty much like how do you uh you know pass down more complex data and also utilize more complex data in your program so I I've been like doing some like brainstorming with the team to see like how how can we utilize that for uh briefly but we like we all agreed that there are going to be it is going to like enable great products on top of that yeah so someone was telling me that actually concatenation also somehow enables uh new maths to be uh computed on bitcoin I'm not I'm not sure like how that works exactly I I think which is also true cuz if you think about this right so what is like I'm not saying like Bitcoin can do machine learning on top of that right but what is machine learning basically it's just

like a matrix uh times Matrix or like a tons of Matrix times Matrix plus some you know activation uh functions so on on a very like naive level so that's something like that right so actually any Matrix can be expanded into a longer list right so it's it's just pretty much the same thing right so it once you can have like expand from one single data onto a list of data technically you can enable even machine learning and all of these linear algebra on top of that so this I would say it's like a it's a huge Improvement I agree with that yeah cool so what's the sentiment amongst conservative bitcoiners not not to say Maxis but uh yeah people who are

more conservative from the perspective of you know keeping Bitcoin simple and uh um keeping Bitcoin say pure what's the sentiment with regards to you know all this Innovation happening on bitcoin amongst that um subset of the the Bitcoin holders and and enthusiasts yeah so I I personally think a lot of things is like either you progress or you slowly die so I think that's that's kind of my take on that so uh I mean Bitcoin is great for now and I think Bitcoin will be forever even if you don't do anything so Bitcoin will still be there for like decades or even centuries or even longer so I I'm not saying like if oh if you don't uh kind

of having smart Bitcoins you don't have like Bitcoin l2s Bitcoin is going to disappear so I don't think it's really going to happen so this is one thing but also two we need to actually uh I mean like the decentralized finance is always progressing right and also there uh like the combination of TR finance and also crypto has been started for a while and keep getting faster and faster you have like deeper uh like Mingo between like traditional finance and also crypto as well so the thing is that like the world is always evolving is always like moving forward and the question would be like where do you see like Bitcoin fits into the picture right so I think like for now it's a like very good opportunity is that Bitcoin is still the first thing

most people think about in terms of cryptocurrencies and also given its huge value and it's like whole reputation and the consensus in everyone that this is like pretty much the foundation of the whole cryptocurrencies and also web 3 so there are a lot of like attempts trying to con like connecting dots right connecting Bitcoin with all of the different dots in different Industries and try to get things to work so this is actually a very good Trend to help people like to help Bitcoin not just to live but also to expand and to dominant and to like collaborate to enable in like all of this different ecosystem but if you just say okay I'm I'm out of this I mean you might be fine in the next 3 to five years that say Okay Bitcoin is staying out of this Bitcoin is staying

out of that Bitcoin is staying out of everything but eventually there's going to be some better Technologies to totally replace uh Bitcoin eventually so I'm not saying like your Bitcoin is going to worth nothing but it probably wanton like keeps performing as good as you would expect so I mean you should be like embracing uh changes and embracing Innovations on top of that um Bitcoin can only keep being greater uh when the com like like the people working around it is getting better yeah I mean I I you know agree with that uh pretty pretty wholeheartedly I think that you know Bitcoin and and every crypto protocol needs to continuously

improve um and the fact that you know the fact that Bitcoin enables this the fact that it is possible that we have gotten here I think as a permissionless protocol you know people should have zero problem with that you know the fact that it is possible and that people are leveraging existing existing Bitcoin architecture and infrastructure to you know create built Bitcoin l2s uh grow uh btcf do liquid staking with of Bitcoin is you know it look I mean like if Bitcoin comes out of this really libertarian sort of uh ideology then doing and doing things on bitcoin and innovating on bitcoin should uh

shouldn't Ruffles anyone's feathers because it you know it's not harming anyone else and uh it is simply you know the uh the expression of people's ideas and um and opinions about how Bitcoin should should uh should evolve so I like that's that's sort of my my stance on it [Music] [Music]