Published on: 2023-09-15T09:31:10+00:00
The email begins with Maxim mentioning that he received feedback on his proposal and acknowledges the need to work on a simpler paper explaining how the proposed generic model, Prometheus, can be applied to a specific case of two-way peg. He plans to complete this work over the next several weeks and will share it with the mailing list once ready.In response to Andrew's query, he seeks a quick explanation of how a certain protocol works in a permissionless, anonymous, and decentralized manner. Andrew specifically mentions a phrase from the protocol that involves consensus on the correctness of the state reported by an oracle. He wants to understand the functioning of this phrase and any associated caveats.To address Andrew's question, the email provides an overview of the protocol's functioning. It explains that the protocol enables a permissionless and decentralized network, where oracles play a crucial role in providing external data or information. The protocol operates based on a consensus mechanism, where the majority of network participants validate and agree upon the state reported by the oracle, ensuring its correctness.The design of the protocol emphasizes anonymity, allowing participants to engage without revealing their identities. This contributes to the decentralized nature of the network, as individuals can join and participate without explicit permission. While the email doesn't provide specific details about potential limitations or risks associated with the protocol, it mentions that decentralized systems often face challenges such as scalability, security, and reliance on trustworthy oracles.Moving on, the second article discussed in the email focuses on proofs for the Nash equilibrium in the protocol model. The author explains the concept of a protocol game, which represents interactions between multiple agents in a distributed system mathematically. They define the protocol model and its components, including players, strategies, and payoffs. The importance of proving the existence and uniqueness of the Nash equilibrium in ensuring stability and efficiency is emphasized.To prove the existence of the Nash equilibrium, the author introduces the concept of best response dynamics, where players iteratively choose strategies that maximize their payoffs based on the strategies chosen by others. The article explains how this process converges to a Nash equilibrium under certain conditions. Potential games, a special class of games, are discussed as a useful framework for proving the existence and uniqueness of the Nash equilibrium.The email concludes with a discussion on the Prometheus protocol, which allows for high-load computing on top of Bitcoin in a censorship-resistant manner. It operates as a multi-party game with an oracle, referred to as a "worker," performing computationally complex tasks. Consensus is reached on the accuracy of the worker's reported result. The protocol is cryptoeconomically safe, has a proven Nash equilibrium, and can be implemented without soft forks using Bitcoin transactions.The email also mentions that the Prometheus protocol can be used to build a trustless 2-way peg on the Bitcoin blockchain without requiring any soft forks. The worker acts as an oracle for an extra Bitcoin system, such as a sidechain or client-side validated protocol, with consensus ensuring the correctness of the state reported by the oracle. This alternative approach enables the trustless transfer of Bitcoins between the Bitcoin blockchain, RGB, and potentially a new layer 1 called "prime. "In summary, the email covers Maxim's plan to work on a simpler paper explaining the application of the Prometheus protocol to a specific case of two-way peg. It provides an explanation of how the protocol functions in a permissionless, anonymous, and decentralized manner, highlighting the role of oracles and consensus. The second article discusses proofs for the Nash equilibrium in the protocol model, explaining concepts such as protocol games, best response dynamics, and potential games. Lastly, it introduces the Prometheus protocol for high-load computing on Bitcoin and its potential use in trustless 2-way pegs without requiring soft forks.
Updated on: 2023-09-16T01:53:32.951192+00:00