Revolutionary Bitcoin Cash Upgrade to Offer Smart Contracts with Ethereum-Level Capabilities and 1000x Efficiency Advantage, Says Developer Jason Dreyzehner

"Software Developer Jason Dreyzehner Discusses the Upcoming Bitcoin Cash Network Upgrade and the Potential Benefits of Cashtokens CHIP for Economic Freedom"

The upcoming Bitcoin Cash network upgrade on May 15 is set to bring about a number of improvements, one of which is the Cashtokens CHIP. This upgrade is expected to provide advanced on-chain applications, such as higher-security vaults, decentralized exchanges, and bridged sidechains that are more scalable and cheaper than those on Ethereum. Jason Dreyzehner, a pro-freedom technologies advocate and software developer, recently spoke with Bitcoin.com News via email about the upcoming upgrade and the potential impact of the Cashtokens CHIP.

According to Dreyzehner, the Cashtokens CHIP is a game changer for Bitcoin Cash. Cashtokens are digital assets that can be issued by anyone and can represent physical assets or directly serve as currencies, payment stablecoins, commodities, securities, debt instruments, gift cards, receipts, event tickets, and more. The underlying technology also enables far more advanced on-chain applications such as higher-security vaults, decentralized exchanges, and bridged sidechains.

Dreyzehner believes that decentralized applications built on Bitcoin Cash can scale to millions of users without increasing transaction fees, even during periods of high network activity. He also notes that the Cashtokens CHIP enables decentralized applications on Bitcoin Cash comparable to those on Ethereum while retaining Bitcoin Cash’s over 1000x efficiency advantage in transaction and block validation. Ethereum developers can think of Bitcoin Cash as featuring transaction-level sharding of both data and execution, account abstraction, deterministic gas pricing, all-or-nothing transaction chaining, zero-delay re-spending, a wider selection of MEV-resistance strategies, and no-fee contract deployment.

The Simple Ledger Protocol v1 (SLPv1) requires wallets to pretend that tokens exist on chain using a standard set of off-chain rules. The rules are computationally expensive to follow, and in practice, they push most light clients to use trusted servers. SLPv1 tokens also cannot be seen by on-chain contracts, so decentralized exchanges, sidechain bridges, and other on-chain applications would require systems for consulting trusted entities about the authenticity of SLPv1 tokens. In contrast, Cashtokens fundamentally exist on the blockchain, are visible to contracts, and require negligible computation for both nodes and light clients to verify their authenticity. This enables trustless, decentralized applications to work with and even issue tokens themselves, opening up entirely new capabilities for contracts to interoperate with other contracts.

Dreyzehner also believes that the May upgrade could make prediction markets possible on Bitcoin Cash, which could potentially save lives. Prediction markets enable trading on the outcome of events, crowdsourcing and aggregating vast quantities of information into simple probabilities. In the full essay, he walks through the ways he expects prediction markets to impact various industries, how they might promote peace and prosperity by exposing organized crime and institutional corruption, and why he thinks Bitcoin Cash is uniquely suited to be a reserve asset for prediction markets.

It is important to note that Dreyzehner is not the first to discover that the UTXO model can be used for smart contracts. However, Cashtokens offer a new approach. Satoshi Nakamoto, the creator of Bitcoin, originally designed the UTXO model for Bitcoin to enable the transfer of value between participants without the need for a trusted third party. The UTXO model was not initially designed for smart contracts, but it has since been adapted for this purpose.

In conclusion, the upcoming Bitcoin Cash network upgrade on May 15 is set to bring about significant improvements, including the Cashtokens CHIP. This upgrade is expected to provide advanced on-chain applications that are more scalable and cheaper than those on Ethereum. The Cashtokens CHIP is a game changer for Bitcoin Cash, as it enables decentralized applications on Bitcoin Cash comparable to those on Ethereum while retaining Bitcoin Cash’s efficiency advantage in transaction and block validation. It also enables trustless, decentralized applications to work with and even issue tokens themselves, opening up entirely new capabilities for contracts to interoperate with other contracts.

Martin Reid

Martin Reid

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