The case for a BIT Chain — MoleGather Recap

  • What’s the motivation to build a Bit Chain, given that almost no existing blockchain is profitable yet?
  • Would there be considerations for options like an L2 or something that resembles a modular blockchain?
  • Given that BitDAO is generally chain agnostic, how will a Bit Chain affect BitDAO’s ability to interact with other ecosystem partners like zkSync and other developer communities?
  • Should decentralization be prioritized over scalability? What is Bit Chain’s priority?
  • Would Bit Chain be a POS or POW chain? If we go with POS, how would Bit Chain address the Blockchain Trilemma tradeoffs between Scalability, Security, and Decentralization?
  • Do we have a team of experienced developers who could be funded to do this job? If not, is there a strategy in place to begin attracting developers?
  • Is there a more elaborate plan for Bit Chain? Do we have a rough prototype yet, or is it still in the suggestion step?
  • What will be the priority of Bybit and other key contributors, the development of Bit Chain or BitDAO?
  • How could Bit Chain support all sub DAOs, since different DAOs have different requirements?

Ben’s vision and proposal

[Kravi from Twitter] “What’s your motivation to build a Bit Chain, given that almost no existing blockchain is profitable yet?”

Ben:

Bybit is a centralized crypto exchange for any crypto user on board — essentialy a centralized entity, which has triggered us to think about the future of Web3.0. We deeply believe that the world is going to become more and more decentralized.

Motivation of Bit Chain

[LBrian asks] The proposal is titled “BitDAO L1 Infrastructure” and many community members are asking if there are considerations for options like an L2 or something that resembles a modular blockchain. Additionally, given that BitDAO is generally chain agnostic, how will a Bit Chain affect our ability to interact with other ecosystem partners like zkSync and other developer communities?

Jacobc.eth:

When working at Metamask, I saw a lot about the growth, success, and decline of different chains.

Jacob:

I can give two examples regarding it.

Technical details

[RJ asks] “Will Bit Chain be a POS or POW chain? If we go with POS, how would Bit Chain address limitations due to the Blockchain Trilemma tradeoffs between Scalability, Security, and Decentralization? Especially, the Decentralization Phenomenon in BIT, as the majority of tokens are helped by a handful of wallets. With this in mind, how can we ensure that Bit Chain is as safe as possible.”

Jacob:

So historically one of the main value propositions of side chains was the usage of a custom asset for gas, and that’s a huge user experience advantage for side chains.

Ben:

First, I think we need more utility functions for it to spread and for holders of the BIT token to hold on.

Jacob:

We’ve had some really great conversations with people from different projects in the ecosystem, which have inspired every participant to build the future of BitDAO together. We’ve seen lots of passionate people come in and propose ways to contribute to this community and build the most maximally decentralised solution or the most scalable solution with higher transaction throughput and lower gas fees. I think BitDAO can make something far more innovative compared to the existing projects today, because we have a diverse set of builders across the ecosystem.

Next steps for this proposal

[RJ asks] So, is there any more elaborate plan for Bit Chain? Do we have a rough prototype yet, or is it still in the suggestion step?

Ben:

I think the BitDAO Foundation, Windranger Labs, has been receiving quite a few proposals from the existing L1 chains like Avalanche, L2, and L3. I think right now the Windranger team is putting up a few solid choices for the community to vote for.

Jacob:

We have a range of different people writing proposals for specific approaches. And some engineering experiments are taking place at the same time to explore the approach and tack of specific models.

Ben:

Bybit will not be going to build the chain itself, but will fully support whoever brings up those proposals that worked on the chain and were voted on by the community. Also, Bybit will keep supporting the future projects and applications built onto the chain in terms of the spot listings, and rules of listings. So from the exchange’s perspective, we are going to fully support this Bit Chain.

Community questions

[Defipaca] How can Bit Chain support all sub DAOs, since different DAO have different requirements?

Jacob:

I don’t believe there is a single chain that can rule them all. Instead, we’re heading to a multi-chain future. I think that the chains people are going to use will have a spectrum of different security levels and different levels of decentralization for their use cases. For example, in trading use cases, it not only needs to have low gas fees but also have a high level of security because of the amount of capital that’s at stake.

Jacob:

There are a lot of things that we need to do to increase governance participation, and we do have a lot of other projects that are being explored. For example, Game7 is exploring a solution for GameFi DAO participation, but the most helpful thing would be a chain with a low transaction fee.

@StoryFiDAO

We hope to collaborate with BitDAO in the future because we have the same mission, which is to onboard more Web2.0 users to Web3.0. We empower all types of creators and their listeners to decentralize the entertainment industry.

@CryptoCloud_k

What makes BitDAO unique from other DAOs?

LBrian:

I think one thing that differentiates us is certainly the open community that we have.

Jacob:

I’d say one of the things that really attracted me and was really interesting and inspiring about BitDAO was the vision of a fractal DAO. A DAO that’s creating new autonomous entities and collaborating with other DAOs in the ecosystem. Like the way, we made zkDAO with the Matter Labs team and zkSync or Game 7 being made with Forte. And then many of these autonomous entities having the potential to create other DAOs in the fractal are a really powerful growth factor, a more community-oriented way of building, which results in better outcomes because there’s community incentive alignment as opposed to everybody building the same thing from their own competitive standpoint. So I think it’s a new way of structuring DAOs and of ecosystem enablement.

@EvolvableN:

Hi Ben and Jacob, happy to see you again.

LBrian:

I don’t have super clear insights on how to make this whole thing execute, but in terms of metaverses, I think that’s still an open option if we do have a Bit Chain. For me, the definition of metaverse is still pretty wide open. Actually, it’s something composable across lots platforms, not just existing on a single chain or within a single ecosystem.

Ben:

I think obviously metaverse is an open option and that’s the beauty of DAO, and that is why Bybit is supporting initially all possibilities to support whatever will bring that killer application. I think we are building applications for the future in general. So I think the idea of the discussion is to openly explore what the future might come and all these killer apps you mentioned. I agree with the idea that makes a slum dog into a millionaire. However, super apps need to be based on a layer right? And hopefully, BitDAO will be able to launch something that supports this type of layer. So I think we are trying to figure out what is the foundation of metaverse, and our proposal focuses on the infrastructure level among steps to achieve metaverse.

@safaal58:

I love this project and think this project will grow every year, but I think Bybit and BitDAO have transparency problems. I read all the documentation of BitDAO and I think we need more information about the projects.

LBrian:

I would encourage everybody to have a look at the documentation to get more clarity about tokenomics and how delegation works. Additionally BIT community members can join us in Discord, Telegram, or Community Calls on Twitter spaces to learn more and ask questions.

IN THE END

Although Ethereum has a first-mover advantage, the public chain structure is obviously not a certainty. What will Bit Chain develop in the future? Whether it can emerge in many public chains and form its own moat is worth looking forward to.

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