The L1 Weekly Report is published every Friday, focusing on the development of Layer 1 blockchains. If you have any suggestions, feel free to contact [email protected].

Bitcoin

• Timewarp attack 600 second grace period
  • The Bitcoin network allows a 600-second grace period for block timestamps
  • There are concerns that this grace period might be too short and could be exploited
  • Discussions are ongoing about potentially increasing the grace period to 2 hours
• Implemented Post-Quantum Cryptography (PQC) Feature into Bitcoin Core
  • Bitcoin Core integrates Post-Quantum Cryptography (PQC) to counter quantum threats
  • Core PQC algorithms and hybrid key management system are now part of Bitcoin
  • PQC transaction signing and flexible configurations are enabled
• Trivial QC signatures with clean upgrade path
  • Post-quantum cryptography (QC) poses a threat to Bitcoin’s EC cryptography
  • Proposals for QC robustness in Bitcoin have been discussed, with pros and cons
  • Taproot offers a potential solution for adding QC security without a hard fork
• Disclosure: irrevocable fees—stealing from LN using revoked commitment transactions
  • Old LN implementations had a vulnerability that allowed miners to steal up to 98% of channel funds. Updates have mitigated the issue, but some theoretical risks remain. Patched versions of Eclair, LDK, and LND have been released, and Core Lightning warns users of risks with certain settings.

Ethereum

• Beneath the Iceberg
  • Ethereum’s protocol centralization is inherent in its design
  • Hard forks are the only modification method due to Ethereum’s architecture
  • The governance structure favors developers and excludes dissenting opinions
• Tidbits of post-quantum ETH
  • Quantum computers threaten Ethereum’s cryptography; upgrades are needed for HD key derivation, transaction signing, address formats, and more. Solutions exist, and action is being taken
• So you wanna Post-Quantum Ethereum transaction signature
  • Quantum computers pose a threat to Ethereum’s transaction signatures. Falcon, a lattice-based signature scheme, is a promising post-quantum replacement. Deployment options include Account Abstraction, hard forks, or a hybrid approach. A careful strategy is needed to secure Ethereum against quantum threats

Aptos

• Key Takeaways from OurNetwork’s Aptos Mega Issue (Q4 2024)
  • Aptos ecosystem saw significant growth in 2024, with over 330 projects and nearly 9 million monthly active users. Daily active addresses increased 10x, and TVL grew nearly 20x. Leading DeFi protocols like Amnis Finance and Echo achieved substantial growth. Emojicoin.launch highlighted Aptos’s innovation capacity. Stablecoin integrations accelerated, with a market cap surpassing $320M. Aptos is poised to lead in 2025
• Key Takeaways from Messari’s Latest Report on the Aptos Ecosystem
  • Aptos ecosystem TVL exceeded $1 billion, a 19-fold increase year-over-year. Traditional finance giants like Franklin Templeton and BlackRock have joined Aptos. Stablecoin adoption on Aptos surged with native USDT and upcoming USDC integration. DeFi on Aptos saw a 28x growth in daily DEX volumes. Aptos is emerging as a leading network for finance innovation