Questions are from the MVC X Cyrator Analyst AMA. Thank @DAD3Young, for raising those valuable questions.
About BRC-20 and Ordinals:
What are your thoughts on BRC-20 and Ordinals, and what is MVC doing to become a relevant player in the BRC-20 and Ordinals space?
The BRC20 movement for Bitcoin ecology presents an intriguing development. It enables the mining of NFTs on top of Bitcoin, but this has led to congestion issues. However, the MVC offers a solution by allowing users to showcase their Ordinal NFTs on the application platform level, regardless of whether they mint them on the MVC or the BTC chain. To facilitate this seamless experience, a bridge between the BRC20 and MVC chains can be established, ensuring users can restore or utilize their Ordinal NFTs on their preferred blockchain. By doing so, MVC effectively alleviates the burden imposed by the Ordinal Protocol on Bitcoin’s congestion issue. With MVC’s assistance, users have the flexibility to store NFTs or BRC20 on Bitcoin while utilizing them on the MVC platform.
About SRC-20 and Stamps:
Continuing with new Bitcoin use cases, we have the latest craze SRC-20 and Stamps. Same questions here. What are your thoughts on SRC-20 and Stamps, and what is MVC doing to become a relevant player in the SRC-20 and Stamps space?
It’s important to note that SRC20 and BTC Stamps are not subject to deletion, unlike Ordinals which may be removed in the future. Initially, MVC will prioritize the adoption of the ordinal protocol, but if there is a genuine demand for SRC20, it can readily ensure compatibility with it.
About Bitcoin Decentralized Finance (BTCfi):
Now moving to a wider narrative, but one that will surely come to fruition soon is Bitcoin Decentralized Finance or what people call BTCfi. How can MVC position itself as an early player to be the Layer 1 or side-chain that helps establish this ecosystem?
By establishing a bridge that connects ordinals and BRC20 through the MetaID protocol, users gain the ability to utilize Bitcoin on the MVC chain for a wide range of web3 applications. This development paves the way for MVC to usher in a new era of web3 with boundless possibilities. The platform opens up opportunities for domains, NFTs, data storage, Socialfi, launchpad programs, micropayments, certifications, and various other functionalities, thereby unleashing its unlimited potential.
POS vs. POW:
Can you tell us why you decided on a POW consensus solution when so many blockchains try implementing POS and other newer consensus solutions?
POS (Proof of Stake) presents notable advantages in terms of energy efficiency, However, PoS is more like a joint-stock company where later miners need to pay higher costs for proportional mining rights compared to early miners, it may arise monopoly issue and affect decentralization and security issue in the long term. It’s worth considering that tokens utilizing PoS consensus mechanisms might potentially fall within the purview of regulatory bodies like the SEC and be subject to classification as securities. Given the evolving nature of the crypto landscape, it’s essential to remain aware of regulatory developments and potential implications for token issuers and investors. On the other hand, POW (Proof of Work) excels in decentralization and transparency, enabling independent nodes to engage in computing tasks and allowing anyone to participate in mining and reap rewards.
In the case of MVC, its optimized UTXO (Unspent Transaction Output) model ensures scalability and high concurrency, enhancing the platform’s overall performance. It is our goal to achieve high concurrency and decentralization at the same time. This is why we decided on POW consensus.
About UTXO Model:
MVC supports an optimized UTXO model. Can you tell the listeners in simple terms how you have optimized the UTXO model over Bitcoin’s implementation and why you feel this is a better model than the Accounting model used by Ethereum, for example?
The account model employed by Ethereum and similar platforms faces limitations in scalability and encounters difficulties in high-concurrency scenarios. In contrast, the UTXO (Unspent Transaction Output) model, utilized by Bitcoin, DOGE, Kaspa and MVC, offers improvements by tracking the ownership of each unit of value (UTXO) instead of recording and managing the balance of specific addresses. MVC takes advantage of both the UTXO and account models with MetaID, an DID based on UTXO model, leveraging their strengths to enable high concurrency and scalability on the platform. This combination of approaches ensures MVC can handle increased transaction frequency while maintaining its ability to scale effectively.
Distributed ID (DID) and the Future of Web3
Talk to me a little about Distributed ID (DID) and what role you think it plays in the future of Web3. Then in your opinion why is it such a game-changer for a Layer 1 like MVC to have Built-In Native Distributed ID?
DID refers to a decentralized identity system that allows individuals to have control over their digital identities. In the context of Web3, where decentralization is a key principle, DID plays a crucial role in ensuring privacy, security, and user autonomy. It enables users to manage their identities across different platforms and applications, while maintaining control over their personal data. The integration of DID into MVC’s Layer 1 blockchain brings significant advantages and opens up new possibilities for decentralized applications and services.
It will be a game-changing role of built-in native distributed ID for MVC. By integrating DID directly into the blockchain’s architecture, MVC provides a seamless and secure environment for managing identities and interacting with decentralized applications. This integration eliminates the need for external identity management systems and streamlines the user experience. It also enhances security by reducing the reliance on third-party authentication services. With Built-In Native Distributed ID, MVC sets itself apart as a pioneer in enabling decentralized and user-centric applications on the blockchain.
MetaContracts: The Soul of MVC
We have already briefly discussed the UTXO model, but MVC is the self-proclaimed “first blockchain to support Layer-1 Turing-complete smart contracts based on the UTXO model.” Can you tell us a little more about what you call MetaContracts and what makes them so special?
MVC has achieved a significant breakthrough by introducing smart contracts to the UTXO Model. At the core of this advancement lies the MetaTxID transaction identification number generation method. This brand-new method sets MVC apart from other UTXO public chains, enabling the seamless integration of smart contracts into the MVC ecosystem.
MetaContracts are Layer-1 Turing-complete smart contracts based on the UTXO model. This means that MVC supports a wide range of complex and powerful smart contracts in a way that different from the ethereum smart contracts, while leveraging the scalability, security and efficiency benefits of the UTXO model. MetaContracts enable various functionalities on the MVC blockchain, such as NFT minting and transfer, token issuance and transfer, atomic SWAP contracts between tokens, and NFT-SALE contracts. It is a ground-breaking innovation that will fundamentally facilitate the blockchain technology. Notably, these smart contracts exhibit extremely low transaction fees, making MVC an attractive platform for developers and users alike.
To showcase the real-world application and validity of MVC, it’s important to highlight some notable achievements. Currently, several Layer-1 smart contracts are running on the MVC mainnet. These contracts have demonstrated exceptional performance, including a record-breaking 10,000 transactions per second (TPS) for smart contracts on the testnet, with thousands of users actively participating. We are setting a new world record for TPS based on the UTXO model. These accomplishments serve as concrete proof that MVC is a robust and capable blockchain platform.
The advantages offered by MVC’s UTXO model and MetaContracts.
In conclusion, MVC’s integration of Distributed ID (DID) revolutionizes the concept of identity management in Web3. Furthermore, MetaContracts, enabled by the UTXO model, bring remarkable scalability, low latency, and enhanced safety to the MVC blockchain. These advancements position MVC as a groundbreaking Layer 1 platform that combines cutting-edge technology with real-world applications, paving the way for a decentralized and user-centric future.
Breakthrough: Bitcoin Virtual Machine (BVM)
One of the cool new buzzwords I see being used by MVC is Bitcoin Virtual Machine or BVM, can you briefly explain this to our listeners?
A notable term associated with MVC is the Bitcoin Virtual Machine (BVM). The Bitcoin Virtual Machine (EVM) raised by us is the computation engine for Bitcoin that manages the state of the blockchain and enables smart contract functionality. This concept represents MVC’s robust Proof-of-Work (POW) Layer 1 blockchain, which supports native swap, bridge, and numerous decentralized applications (dApps). The BVM serves as the underlying framework for executing smart contracts on the MVC network with following features:
- Turing complete: Bitcoin is being Turing complete allows it to be able to run arbitrary logic.
- Composability: MVC will not be the only BVM-compatible blockchain. Many Layer 1 (L1) and Layer 2 (L2) chains can be BVM-compatible, making it easy to migrate and deploy contracts or transfer tokens between chains.
- Decentralization: The BVM empowers developers to deploy dApps (decentralized applications) on Bitcoin and many other UTXO-structured blockchains.
MVC as a Sidechain Scaling Solution to Bitcoin
MVC is obviously a robust POW Layer1 blockchain with a native swap, bridge, and numerous dApps already running. However, you are also positioned to be a Sidechain scaling solution to Bitcoin much like Polygon is to Ethereum. Can you tell us a little about how MVC is positioned to grab this market share?
Polygon has made significant strides in addressing the scalability challenges of Ethereum, providing an effective solution for the network. Similarly, MVC is poised to follow in Polygon’s footsteps by implementing innovative technology that enables seamless scalability on Bitcoin. MVC is positioned as an ideal platform that can empower billions of web3 businesses to thrive on Bitcoin, solidifying its position as the true king of blockchain technology. By mitigating scalability issues, MVC holds the potential to revolutionize the industry, propelling Bitcoin to new heights and establishing it as the go-to blockchain for a multitude of applications without compromising on performance.
MVC’s Storage Capabilities and Side Chain Ambitions
As part of a follow-up to the sidechain question, you are also positioned to provide storage like Arweave. I read somewhere in your documentation that one of the project’s main aims is to become the ‘best side chain of Bitcoin’ by acting like Bitcoin’s external and scalable hard drive. I also read that 1 $SPACE will get you the equivalent of 100MB of on-chain storage. Can you elaborate here for us?
By leveraging MVC, we can achieve an extremely low fee to store data permanently on the chain, effectively solving the limitation faced by people when storing only kilobyte-level data on Bitcoin. This innovative approach has proven to be successful, and users can now experience this groundbreaking feature within the MVC ecosystem, such as on platforms like show3.io. Pictures, music and even videos can be stored on MVC when this feature is enabled in the future. In this solution, data storage becomes accessible and affordable, paving the way for a new era of decentralized and scalable solutions on Bitcoin. SPACE can also represent the capability to run smart contracts or programs. It depends on who the developers utilize this on-chain storage.
Scalability and Supernodes
In BTC and ETH, every node has to compute every transaction, leading to thousands of computers doing the job that a single centralized server can do. Additionally, BTC requires a 10 min propagation delay, leading to very low TX/sec. I would like to understand on a deeper level how the MVC scaling solution works.
While every node in MVC still computes every transaction, the platform incorporates Simple Payment Verification (SPV) technology. This enables lightweight clients to check transaction validity on the MVC blockchain without downloading the entire blockchain data. Only miners and application platforms are required to maintain the relevant blockchain data. This approach reduces the burden on general users, minimizing costs and improving the overall user experience.
You mention “supernodes” in their whitepaper. I would like to understand exactly how they work and how they can avoid the two problems I mentioned before facing BTC and ETH.
Supernodes play a vital role in enabling MVC to achieve unlimited scalability. However, MVC aims to avoid arrogance and set realistic expectations. While the exact details of supernodes and their specific functions will not be disclosed at this stage, MVC has demonstrated a realistic transaction processing speed of 10,000 transactions per second (TPS) on their testnet. This level of scalability is more than sufficient to meet short-term market demand. In the future, if there is a genuine need for higher TPS, MVC will upgrade its network through the Super-Node upgrade.
About MVCDAO and POB
MVC is not fully mined token. Why did you decide to split it between DAO and Mining and Team? Why not use Kaspa or Bitcoin model to mine all the tokens fully?
MVC has implemented a DAO (Decentralized Autonomous Organization) to incentivize developers and contributors effectively. This decision was made based on our belief in the power of a globally owned blockchain, where all developers and contributors have a stake in its success. By establishing a DAO, we ensure that individuals who contribute to the MVC ecosystem are fairly rewarded for their efforts. This incentivization model creates a collaborative and sustainable environment, fostering innovation and growth within the developer community. Through the DAO, MVC aims to empower developers and cultivate a sense of ownership, driving the platform towards new frontiers of decentralization and technological advancement.
Comparison with the Lightning Network
How is MVC different from the lighting network?
The Lightning Network has inherent design limitations such as funding limits, offline risk, channel opening costs, and functional limitations. Unlike the limitations inherent in the Lightning Network design, MVC offers a solution that improves upon these shortcomings.
Firstly, MVC eliminates the funding limit found in Lightning Network, allowing for larger transactions without constraints. This means that users can comfortably conduct substantial transactions without worrying about reaching maximum funding thresholds.
Secondly, MVC mitigates the offline risk by implementing robust network architecture, ensuring that users can make payments even if one of the nodes goes offline. This enhanced reliability provides a seamless experience for users, fostering trust and accessibility.
Thirdly, MVC eliminates the channel opening cost that acts as a deterrent for some potential Lightning Network participants. By removing this fee requirement, MVC encourages broader participation and inclusivity within the network.
Lastly, MVC surpasses the functional limitations of Lightning Network by offering comprehensive support for advanced Bitcoin features, including multi-signature payments, ensuring a more versatile and feature-rich user experience. With these advancements, MVC emerges as a groundbreaking network that addresses and surpasses the limitations of the Lightning Network, providing a more efficient, scalable, and user-friendly solution for decentralized transactions.
MVC’s User Onboarding Plan
One of the most confusing references found on the website is the following “Use Blockchain as the Pure Solution. We Propose a New User Onboarding Plan to Enable New Users to Enjoy Web3 Applications Without Buying/Holding Cryptocurrency”. Can you elaborate on this or say it differently?
As the blockchain for Web3, we recognize the importance of attracting new users from the Web2 world to help us achieve our goals. To facilitate this transition, we have developed a comprehensive onboarding plan specifically designed for Web2 users. Our plan focuses on enabling users to explore and experience Web3 applications without needing to initially pay any on-chain fees or hold cryptocurrencies. We aim to provide a seamless and barrier-free entry point into the world of decentralized technologies. By removing the financial burden and simplifying the process, users can freely engage with Web3 applications, gaining firsthand experience and understanding of their potential.
Additionally, business developers offer users the opportunity to receive a small amount of cryptocurrency to kickstart their journey and familiarize themselves with the digital asset ecosystem. The reason application platforms are willing to cover these costs is simple: in any system, someone has to bear the expenses, either the user or the service provider. Taking the internet as an example, suppose an internet service in a shop costs $200. If the shop serves 10 users in a month, the cost per customer is $20. However, with 100 users, the cost drops to $2 per customer, and with 1,000 users, it becomes $0.2. As the user base grows, the costs decrease. Eventually, this cost trend aligns with the MVC network.
We aim to bridge the gap between Web2 and Web3 through these initiatives, fostering a user-centric environment that encourages widespread adoption and participation in the decentralized future.
