BITCOIN RAILS EPISODE #22: The problem with Bitcoin L2s & the ‘Bitcoin Fee-Scaling Dilemma’ | with
@MARAHoldings Director of Engineering Michael Casey
@theblackmarble
Michael Casey was brought on by
@MARAHoldings to address an often overlooked problem in the world of Bitcoin Layer 2s… they generally don’t contribute much to the security budget of Layer 1 Bitcoin.
We often hear concerns about fees being either too high OR too low depending on how you look at it…
too high if you’re optimizing for 8 billion people being able to use the network in a self-custodial way—but too low if your goal is maintaining network security as Bitcoin block rewards continue to halve over time.
This interview explores this "fee-scaling" dilemma, as we discuss:
-Why MARA is funding a Bitcoin side-chain development projec
-The power of merge mining in solving this “fee-scaling dilemma”
-How Bitcoin was used for payments in a pre-Lightning world
-Why L2s ultimately need to pay Bitcoin miners to sustain the network in the long run
We also cover some fun Bitcoin history—like the impacts of Bitcoin’s cultural shift from being “network-focused” to “asset-focused,” why BIP300 may have been a good idea after all, and the little known history of
@Truthcoin 's BitAssets.
As always, this episode can be viewed on Spotify or YouTube—full episode in the comments or linktree in my bio.
This episode is powered by Best In Slot—the leading API for Ordinals and BRC20 data aggregation and indexing.
TIMESTAMPS
00:25 Intro to Mike Casey
01:08 Why did MARA launch Anduro sidechain?
02:00 Anduro: a merged-mined Bitcoin sidechain
03:50 Are we thinking about Bitcoin fees enough?
08:00 Price is rising - where are the fees!?
09:30 When Bitcoin truly becomes vulnerable
11:18 Will nation state funded mining take over?
15:30 Mike’s role before working at MARA
18:20 Mike gets obsessed with Bitcoin’s price
21:00 The GM director’s Bitcoin presentation
22:44 Mike moving on from GM to MARA
24:40 Anduro chains: Alice and Coordinate
26:10 Coordinate: a fork of Bitcoin core
29:15 Fairer fee market: dutch auction fee mechanism
31:50 Coordinate is getting OP_CAT!
33:00 Spending BTC is long dead
34:00 How does Coordinate compare to Lightning?
34:55 Taproot Assets are quantum vulnerable!
41:50 Taproot: Schnnor signatures and MAST
43:00 Can the BitVM L2s be quantum resistant?
44:40 Mike doesn’t want OP_CAT
46:29 Ethereum’s Rollup Problem
47:30 What about BIP 300?
49:30 What are Bit Assets?
51:00 There’s no ignoring Ordinals as a miner
53:40 Bitcoin had the first NFTs
54:45 DEXs on Coordinate
56:00 Let’s not see Ordinals die