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

• AssumeUTXO and Bitcoin snapshots
  • Jaonoctus is hosting AssumeUTXO files and Bitcoin blockchain snapshots on the website https://bitcoin-snapshots.jaonoctus.dev, inspired by the “prunednode.today” project. Interested people are asked to double-check the technical details. The results from gettxoutsetinfo and AssumeUTXO parameters from chainparams are included, with a code snippet shown from the Bitcoin repository. Jaonoctus hopes the information is useful.

Ethereum

• Rainbow roles & incentives: ABPS + FOCILR + AS
  • This article explores the limits of a maximally unbundled staking set in Ethereum. It presents ABPS, FOCILR, and AS as mechanisms to improve censorship resistance and handle incentives. ABPS separates beacon proposers from attesters to burn MEV; FOCILR ranks transactions to enhance censorship resistance and incentivizes includers; AS splits attester roles. Additionally, it discusses DPA and multiple reward curves for role pricing. Overall, it emphasizes the importance of unbundling incentives and considering consensus requirements.
• Smart Account Encrypted Mempools
  • This article presents a design for encrypted mempools using smart accounts and a fraud proof game. It classifies encrypted mempool designs, with the proposed stage 2 design using smart accounts to enforce transaction ordering and a fraud proof game for inclusion. The design involves users encrypting UserOps, proposers creating an ordering declaration, and on - chain validation checks. It has features like preventing frontrunning and censorship, but also has considerations such as dependencies on certain EIPs and potential information leakage issues.
• Smart Contract Commitment Attacks
  • This article introduces the concept of absolute commitments using smart contracts in blockchain systems. It explains Stackelberg attacks, where agents use smart contracts to change game - theoretic assumptions. For example, an attack on EIP - 1559 can reduce miners’ revenue. Currently, these attacks are not practical due to technical limitations, but as blockchain capabilities grow, they may become a threat. The authors hope the community can find ways to mitigate this issue.
• Holesky Incident Debrief
  • The Holesky chain is operating with limited block production. Immediate tasks include restoring validator operations and finalizing Sepolia fork plans. There are also follow - up actions like assessing Holesky’s recovery, determining slashing strategies, and providing node operator guidance. Next, teams will share incident retrospectives and discuss long - term mitigations.
• Dynamic Blob Sizing: Reducing Zero-Padding Overhead in Small Rollups
  • Small rollups with low L2 data throughput face issues under EIP-4844’s 128KB blob design. Existing solutions like Blob Sharing and Aggregation have drawbacks. This article proposes a dynamic blob sizing solution. It allows variable blob lengths, has a new encoding, custody, and pricing mechanism. The solution aims to reduce zero-padding overhead, achieve better cost control, and optimize latency.
• The Dave Fraud-Proof Algorithm
  • The security of fraud proof systems for optimistic rollups requires three key properties. Existing algorithms couldn’t meet all of them. The Dave algorithm, a new fraud - proof algorithm, was introduced. It allows honest validators to cooperate trustlessly, resists Sybil attacks, and balances decentralization, security, and liveness. Dave has low entry barriers and short dispute settlement times.
• Enforceable Human-Readable Transactions: how to solve Bybit-like hacks
  • Ethereum experienced a major theft due to the unreadable nature of transaction input data. EIP-712, while an improvement, still has flaws. A new technique is proposed to embed an enforceable, human - readable description in signed messages. It has some overhead but can prevent fraud. Adoption may be more suitable for L2s, and there are differences compared to other similar approaches.