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A proposed solution to #Bitcoin scalability and lack of expressivity is the addition of new covenant opcodes. Each proposal has its own advantages, disadvantages, and trade-offs, but all include a certain level of Miner Extractable Value (MEV) risk. Given these inherent traits in the nature of programmable money, what level of risk is acceptable?
We explore this question by examining MEV and the limitations of Bitcoin Script. We also look at some of the covenant proposals, such as CAT + CSFS and CTV, as well as the new Simplicity blockchain language, an alternative to Bitcoin Script that is more expressive with static analysis and formal verification.
The latest from Blockstream Research:
I don't know about you but I think this entire MEV crap, stinks to high heavens, once we have established something good (BTC chain) there is always some greedy genius who comes in and messes things up. Like there is not enough of a block reward, there gotta be more....greedy bastards. I hate that part of human nature. Why don't you just leave the order alone and make it immutable and call it as nature intended "first come first serve", sit quietly in the queue until the next block is done, collect your money and have a nice day. Nooo, of course not... IMHO there is nothing but ugly (butt ugly) with MEV. (rant over)
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Because fees go higher and higher, until what the poor bottom 50 percent in Africa managed to save for a year is turned to dust.
Bitcoin has never been perfect and the code has never been considered immutable, not even by satoshi.
It is certainly fair to call out Blockstream though. They are trying to have an outsized effect on Bitcoin development.
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0 sats \ 0 replies \ @gd 21 Feb
This is a fantastic overview, Iā€™m really glad there is a lot of discussion on these potential upgrades. Simplicity looks interesting, Iā€™m going to investigate that more.
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I wonder how many users are actually aware of mev or they just don't consider it just how the fees the pay work? Do users not particularly care because they're still happy with the transaction terms so these mev bots don't bother them?
The numbers they are generating are insane, not a bad hustle to be in if you are going to play in the crypto space
I tried looking for MEV stats on Bitcoin now that we have this ordinals market, wanted to know how much is going on there, surely there's a bunch of scalping now with all these inscription trading with users trying to snipe or even counter-snipe each other's transactions
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I don't know if MEV is a red herring. The unintended consequences of Simplicity could go far beyond that.
Why not just do CTV and see where that goes? Everyone seems to think it's at least somewhat useful and likely harmless. I think we could use some progress for PR if nothing else; main chain development feels stagnant.
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The MEV phenomenon seems analogous to high speed trading arbitrage maneuvers seen in traditional stock markets applied to "crypto". Seems a very interesting balancing act to give Bitcoin expressive programmability while also avoiding the pitfalls of MEV as seen in other chains.
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