When Solidity Meets Satoshi Redefining BTC Finance Using Ethereum’s Breakthroughs - Filip | Tanari

I want to start with something uh and ask you what do you think is the biggest technical innovation that happened on Ethereum so far or either in the blockchain completely? Is it EVM? Is it maybe DA as a concept? Can we say that like token standards are something that was really good uh and really innovative or maybe NFTs as a you know as a as a culture uh that we got or is it rollups uh that we hear about often or maybe some newer stuff like ZKTLS there's a multiple of them right but um I think we can agree that like the biggest one was like GM right the the best way to do the intro in a crypto space uh my point here is that a lot of stuff happened in Ethereum ecosystem over the last 10 years, right? Uh but when we think about it, I want to give you the perspective of zooming out and checking what's what was happening on Bitcoin during the same time.

So if we go to the Bitcoin and we go to 2009, it's like the ancient history of blockchain, right? This is where we where it all started. This is how we got the first cryptocurrency, the most decentralized one. the promise of scaling the financial system so that we don't have any custodials so that we don't have any third party that's controlling our assets that we are in control of our own money right but then if you try to follow the same trend like uh a couple of years later there is not too much changing in terms of innovation okay there was of course mining of bitcoin there were some exchanges there were first wallets but it's not that like we got so many innovations compared to what we got uh in ethereum and and similar ecosystems. A few years after that, some people got a new idea.

The idea was, as you all know, let's try to put programmability on top of Bitcoin. Let's on on blockchain in general. Let's try to make something that we can code as a logic and put it on blockchain and in that way uh enable much more expressive solution that blockchain can enable. Uh I don't know if you know the story, but uh Vitalik actually tried to do this on Bitcoin. Ethereum was supposed to be a project on Bitcoin.

There was many kind of a similar protocols on top of Bitcoin such as Omnilayer and Vitalic actually tried to build uh let's say you know smart contracts on top of this omni but he couldn't uh the bitcoin wasn't expressive enough so that this was possible at the time. So the alternative was uh uh the only alternative was build something from scratch and that's how we got all of those innovations that happened in the last 10 years. But then okay, we all know what happened in Ethereum, right? We can ask ourselves what what was happening at Bitcoin at the same time. Bitcoin actually after 2015 went to this period that is known as block size wars.

Have you guys heard about block size wars? Has anyone heard about it? Okay, some cool. Block size wars were really like u an interesting period in Bitcoin because this is the first time we got the opportunity to actually see how the this decentralized community actually decides on some big deal some big thing right the big thing was how do we scale Bitcoin uh one of the people one of the group said well Bitcoin has really small blocks as said four megabytes right pretty limited transactions can be expensive if there's too much of them let's increase the block size let's make those blocks bigger let's put more transactions in um let's scale it in in that way. And that sound pretty logical, right?

But then the other fraction said, well, this is not a good idea because in that way we're sacrificing decentralization. And decentralization is what why we start the Bitcoin in the first place. So we need to keep it in the same way in order to actually not damage the whole protocol, not damage the the thing why we started the the Bitcoin itself. And then there was like two years of fighting, you know, multiple fractions, people trying to argue on both sides. And then in the end what happened is the small block let's say fraction one which means the block size stayed the same.

If you heard about bitcoin cash that's actually the consequence of this uh block size wars because they were the ones who increased the block size did the hard fork but now bitcoin cash is kind of not near the bitcoin original chain. So this was pretty interesting. A year after that we got lightning network. You know about lightning network. Hope it's a payment system uh in it.

It had a great promise uh in terms of like you build an L2 on Bitcoin, you transfer payments, you process them and it's much more scalable than Bitcoin. This was cool. Okay. But at the same time, Enlightening Network has its own limitations. The limitations are as we know, you can only use it for payments.

Most of the payments actually fail. It's not that reliable to use it. It's kind of adopted. Bitcoin maxes love it, but it's not the perfect solution that we have and that we need in order to actually scale the Bitcoin network itself. And in the next few years in terms of innovations, again, not much happened.

We had some improvements in lightning. We had some new ideas, but none of that uh went went live. But in 2023, something happened that kind of shaped the whole new narrative of what was happening in Bitcoin. Does anyone know what happened 2023? Bitcoin.

No. Okay. What happened is called ordinals or escriptions. So for those of you who didn't hear about it, ordinals are actually NFTs on Bitcoin and they are uh uh you know the first thing that happened because they're kind of different compared to what we have in Ethereum other ecosystems because you basically put the whole NFT directly in the block and it's called description a part of it. And this was the huge innovation because it was completely different to what Bitcoiners as a you know the dominant culture maxi as the dominant culture within it.

They expected people who got you know who build NFTs in and the other ecosystems 2020 2021 went to to Bitcoin and started you know playing with it started doing all the things they did a couple of years back uh on other ecosystems and that was crazy because like it was completely opposite of what was happening on Bitcoin so far. Why would it why it was also crazy is that it was directly visible. So you know if you if you watch meool which bitcoin does do a lot you know you have multiple transactions some of bigger some are smaller but then like when we had the inscription transaction this is actually uh you know one of those NFT collections paying the miner to mine the whole transaction directly into the block and we see how it is much more different than what's happening on the left side and this is actually why we started uh talking about it much much more this was a kind of big moment uh because activity on Bitcoin came back multiple people started building multiple projects and then not only that but the next year we got BitVM tal spoke about Bitvm in detail so I won't uh go into much much technical details there but the whole point is that BitVM is an algorithm that enables you to build bridges bridges that are much more safer and much more let's say trust minimized than than what we had so far before BitVM what you needed to do is a trust of federation trust multiple people not to steal your Bitcoin now with BTM you could do this much much more safely and that was huge because combining scriptions that happened year before with BitVM that's happening now we got of course something roll-ups and what this is what Talif was talking about roll-ups are really great thing because they actually enable you to scale Bitcoin in a way that it keeps its original promise and this is what we're going to talk about next so Bitcoin started as a you know financial revolution it started as a promise that we can transfer you know transform the whole financial system in a way that we are in control but this was is not possible now this is not possible because like with finance you don't just hold your money you try to use it you take mortgage you try to lend it to borrow it uh it has to be you know transferable transferable in an easy way so that everyone can use it simply this is not what's happening currently also what doesn't help is that bitcoiners a bit different you know they really value the safety part they don't want to risk all of it they want to you know be conservative and initially we have to take a tradeoff the thing is like if you want to use bitcoin like if your parents ask you how do I buy bitcoin what do you do well you have to recommend them go to binance go to coinbase you know they won't spend like 100 hours studying how to do hardware wallets we should not expect most of people to do that we should make something that's easy enough for everyone to use it while not taking the safety trade-off and this ethos of self- custody could not be practically scaled to billions until now. Now it can how do we scale it? Well, what we can do is we can actually build a perfect we were trying to think what is the actual perfect financial platform?

What is actually perfect financial system? And I think it's pretty obvious like it's kind of a global. It's really easy to use. You can store your money. You can save it.

You can spend it. You can actually borrow and lend it or you have this full uh uh uh you know opportunity to invest in a way that you find comfortable with the risk tolerance you find comfortable and all of it is self-owned. Nothing is you know hold but anything other than yourself and this is the big thing that we we currently lack but with Bitcoin and with all the new innovations that I just mentioned this is kind of possible now and this is something that we do in the project called Tanari. So what Tinar is doing is we're enabling you to do everything within one app that can ma mention and manage all of your financials from one place in a secure way. What does that mean?

Well, you have the hardware wallet level security on your app. You send your payments, you send your Bitcoin in really easy ways by scanning QR codes, you know, in a few seconds thanks to Citria. And then like you can actually earn interest on top of it. You know, when you store your Bitcoin, the interest is not something that's kind of defy Den yield stuff. It's something that's pretty transparent.

It's something that other platforms can also enable as well. And then of course we want to enable the simple uh uh you know connection with your bank account so that anyone can actually buy, sell and then use it. And of course what is really important is Bitcoin back stable coins so people can actually the stability of the currency uh they they want to use. So how this all of this works? Well, this is just a you know a screenshot.

Uh Tari is really you know just an app. It's an app based on simplicity which means you don't have UTXOs. You don't have seed phrases. Sorry. You don't have any other those complicated fee management stuff that you usually see on Bitcoin.

What you have is a simple face scan. You have a simple fingerprint and everything is like easy to create account to send transaction and similar stuff. All this is based on pass keys. Maybe you heard about pass keys. Pesky is a really important concept because they enable us to do this hardware level security with the same easiness of use uh as as our mobile apps that we use for for web to stuff as I mentioned like cure codebased payments and then lending and borrowing uh is something that we will enable everything through one app.

Uh my point here is that there are multiple innovations that we can now leverage from Ethereum and ecosystem or other similar ecosystems and applied to bitcoin directly and this is the the whole point of the title where Satoshi meets solidity. we actually can combine those two. For example, liquidity V2 version is what enables us to do Bitcoin backstable coins. Uh we see multiple people being willing to actually try it out. Bitcoin whales don't want to just sit with their Bitcoin.

People who want to know trade NFTs, they can now do it on Bitcoin. People doing, you know, they want to have stable coins, they don't want for it to be backed by gold or some other company that they don't trust, they can it can be now backed by Bitcoin. The whole point is that Bitcoin now has finally this whole possibility of using it in a way that it should be used from the beginning. It's just that we didn't have technical solutions to do it and now we can. This is the main reason why we're building Tinari and we would like uh for you to try it out and and to hear your feedback on it.

That's it. We think this is the future of self-owned Bitcoin f finance. And if you're interested in it, you can find us on those links or if you uh you can connect to me as well by scanning the cure code. And yeah, I'm happy to take your questions now. Thanks.

Any questions? Yes.

Do we do we

Okay, so the question is what should we do with all of this in 10 years? The whole vision is you know everyone who wants to try out Bitcoin and wants to use it they use it in a way that's true to the ethos of Bitcoin. So imagine your neighbor who is not technical person. Imagine your parents. Imagine your children you know they all want maybe to try it out.

Maybe they want to use in advanced way. Maybe they want to you know uh do something new with it. They can all do it in a way that's self-custodial and they are in control on all of it. And we hope that eventually Bitcoin will replace traditional systems. Who knows when it will happen?

Maybe 5 years, 10 years, 50 years, 100 years. Who knows? But the thing is like with this we actually have a chance. And I think this is the biggest part why we are actually doing all of this. Okay.

No other questions? Yeah. One question in the back. So the question is what's my take on Bitcoin L1 right?

We did a lot of work on L2s and nowadays it's more and more popular to talk about the fact that you know we should maybe work more on L1 scale L1 so we kind of prove that well it's necessary uh even if you have an L2 is still necessary. So what do you think uh I don't know Bitcoiners think of this? Are you aware of you know what's going on with their L1? I think I think that's a really good question, a really good point because like we now see the you know this traction like should we scale the L2s or should we scale the L1 in Ethereum like what what's the best deal to do that and Bitcoin kind of doesn't have the same problem because L1 is really simple you know like on Ethereum you can have deps on on right L1 on Bitcoin you cannot do that much right and that's why we really need those layers in order to scale it so I think that's a feature when it comes to like this slow movement and slow upgrades of L1 and keeping it simple and also I think Vitalic three weeks, maybe a month ago, he tweeted about like how he sees the future of Ethereum and then like one of the tweets was like um we should simplify L1 same as Bitcoin something like that and then Bitcoin maxed use that like oh Vitalik wants to you know get back on Bitcoin he made a mistake and all of that so I but I think it's really important to see like we start with simplicity and then we scale it and that's also like if you if you think about it that's also how a traditional financial system work because like we use banks we use mobile apps we use all of that but then beneath it is like central banks but beneath It is all like one really simple system that does like you know 10 transactions per year you know huge transactions in trillions but it's really simple and slow and I think if you want to make a better version of it we should have the same approach of scaling I think it also said on the slides that you have the lending borrowing is it like uh you know uh implemented onchain or it's like P2P more of lending borrowing

our app

uh no no uh BC lending borrowing

lending borrowing oh yeah uh there's actually project called nectra talik mentioned them they're actually implementing them and it's implemented also in citra so with anar you access all those apps that are built on sitra directly and of course they're using this bitcoin that's you know backed by bitia

thank you

thank you okay thank you so much