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

• MultisigBackup.com: Backup and recover a k-of-n descriptor using only n seeds
  • The author introduces an open - source project, multisigbackup.com, aiming to simplify multisig descriptor backup and recovery. Currently, recovering a 2 - of - 3 multisig wallet requires more than just seed phrases, which is against users’ expectations. This tool encrypts and inscribes the descriptor on Bitcoin, ensuring data availability and privacy. It allows easy recovery with two devices and has a one - time cost. Future development will focus on features like Taproot multisig support.
• Highly Available Lightning Channels Revisited – ROUTE OR OUT
  • The author revisits the idea of a Lightning Network with zero payment failures. The core idea is to skip nodes after a single channel failure instead of using probabilistic scoring. Nodes can signal 100% forwarding success for certain peers to gradually improve service. Concerns were raised in the linked discussion, but routing nodes can modify software to send this signal, and unused bits in htlc_maximum_msat can be repurposed for it. The author seeks more thoughts on this concept.

Ethereum

• Optimistic rollups, the challenge period and strong censorship attacks
  • This article discusses the challenge period in optimistic rollups and strong censorship attacks. Currently, a 7 - day challenge period is in place, but its origin and appropriateness are debated. The challenge period aims to enable a social response against 51% consensus attacks. In case of strong censorship, a social response involving a hard fork has specific time - bound requirements. An alternative is to accept that optimistic rollups are less secure than ZK rollups. There are also various resources for strong censorship detection, and an enshrined oracle for censorship is proposed for discussion.
• Improving DAS performance with GossipSub Batch Publishing
  • This article focuses on enhancing DAS performance. It points out that the traditional GossipSub implementation has issues with message diffusion balance due to the uplink bandwidth limit. The proposed solution is batch publishing, which uses chunk and peer scheduling techniques to ensure the first copy of each message is sent out first. Simulations show that batch publishing significantly reduces latency, especially in low - bandwidth scenarios, and is beneficial for increasing the blob count. Additionally, it discusses possible scheduling strategies and mentions that batch publishing can be applied to other pub - sub protocols.
• Becoming Based: A Path towards Decentralised Sequencing
  • This article presents a roadmap for rollups with centralized sequencers to transition into based rollups. It first outlines the challenges of centralized sequencers and the benefits of based sequencing, like enhanced performance and decentralization. Then it defines key terms and details a delegation - based design for based sequencing. It also provides a three - phase approach for rollups to adopt based sequencing gradually. Finally, it discusses risks such as centralization and open questions, aiming to collaborate with the community for further refinement.
• The Road Towards a Distributed Encrypted Mempool on Ethereum
  • This article discusses the development of a distributed encrypted mempool on Ethereum. Ethereum faces issues like censorship and front - running, and encrypted mempools can help address them. Threshold encryption is a viable technology for this. The proposed roadmap includes out - of - protocol steps like RPC and relay integration, and an in - protocol solution in the end. It also explores economic incentives, open questions, and further improvements, aiming for a more fair and private Ethereum ecosystem.
• Privax: Building Cross-chain Privacy
  • The article presents Privax’s cross - chain privacy solution. It aims to balance security and compliance by integrating ZK protocols with an internal ledger and R - Bridge. The internal ledger manages private state locally, and the R - Bridge connects internal and external ledgers. Privacy - preserving smart contracts follow an access - control model. This approach can achieve cross - chain privacy, which is crucial for the future of DeFi.