SPV, UTXO Management and Tx Proposing

SPV, UTXO Management, and Tx Proposing

2-Way Peg Program

Dive into the heart of the system: the 2WP program, split into two modules for computation (stateless) and state management (stateful). Within the computation module, Stateless components like Simplified Payment Verification (SPV), transaction proposing with batch processing to optimize fees, and circulation control for minting and burning zBTC are housed. Transitioning to the State Management module, it oversees Stateful elements such as UTXO Management, Transaction Management for both Bitcoin and Solana, and Proof Management, which focuses on signature validation.

Implementing SPV on both sides appears feasible. However, practical challenges emerge in verifying Solana transactions on the Bitcoin blockchain. To tackle this, considerations have been made for a staking mechanism and slashing program (possibly within the Zeus consensus) to counter potential attacks, with any undesired Bitcoin transactions serving as fraud-proof.

Further examination of Proof-of-Deposit and Proof-of-Withdrawal reveals that the former utilizes the Solana Virtual Machine (SVM) to verify and store transactions on-chain, thereby offering flexibility for DeFi platform design. The proofs employed include Proof of Deposit (UTXO) and Proof of Burn (Solana).

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