Abstract

In the era of AI technology as tools which lowers the barrier to creative artworks (such as storytelling paragraph, images, 3D models, etc.), it also challenges creator’s ownership of their creative output. Therefore, to have ownership built in a blender of creativity, there is a demand for a solution that in a quantifiable manner for creativity ownership.

The solution lies in the web3 ecosystem and the blockchain technology in its distributed ledger: securely links list of records together via cryptographic hashes and its irreversibility - store records transactions in a secure and transparent manner. Based on the robust foundation provided by blockchain, the advent of Bitcoin has showcased the practical applications of these technologies in facilitating decentralised method of financial transactions, free from the control of any central authority.

Therefore, to apply Bitcoin Blockchains’s decentralised manner in building a fair and ethical HAI network and extend its capability to empower creators in building their own applications/projects without compromising the security, we propose a layer 2 solution to Bitcoin Blockchain.

Why we need Layer 2 solution in Web4

Due to the flexible needs from creators in sharing their creativity, Ordinals Inscriptions provides the solution, which sets the foundation of Web4. However, Ordinal Inscriptions is native to BTC which does not support smart contracts which is used in automate transactions, enhanced security and enable trustless interactions. Hereby, we propose smart contracts deployment for Oridinals protocol on BTC. In addition, to involve more existing Ordinals Protocol holders in the our ecosystem, we propose the solutions for bridging inscriptions cross-chain, fully supporting the Etherum Virtual Machine (EVM) to transform inscriptions into tokens.

By combining smart contracts to support secure interactions, AI models as tools to create and the cross-chain bridge to support robust interactions such as Swap, leanding, NFTs, mining and more, we aim to build a energised creator ecosystem.

How Web4’s Layer 2 solution secures on-chain transactions

Web4 Layer2 adopts a multi-layer architecture design, completing data services, data submission, data sorting, and data validation through execution nodes. It achieves data synchronization and payment operations with BTC execution nodes through the on-chain EVM, Bitcoin light node contracts, and deposit-withdrawal contracts. External services are provided through Remote Procedure Call (RPC), multi-language SDKs, API interfaces, and on-chain data display queries via browsers.

To ensure the security of Layer2 chains and the security of cross-chain transactions from Bitcoin chain to Layer2, Web4 employs a series of technical means to achieve comprehensive decentralized security verification. Compared to other projects using centralized cross-chain or centralized verification methods, the technical implementation difficulty is higher, and the security level is greater.

Historical Projection to Enhance Security of Web4 Layer2

In order to ensure the security of Web4 Layer2, a new technology called Historical Projection Technology was adopted in the design of the technical architecture. The execution nodes condense the confirmed on-chain state and all historical transactions into a projection, represented by a hash value. The execution nodes record this hash value in Bitcoin blocks through transactions. Since this projection contains all current information of Web4 Layer2, all Bitcoin users can verify and confirm any event that occurs in Web4 Layer2 at any time using this projection. This ensures that the historical state of Web4 Layer2 will not be tampered with, providing robust security for Web4 Layer2. Additionally, since the projection includes all current information of Web4 Layer2, it can prove that any transaction containing this information must have occurred after this projection. This serves as strong evidence to prevent long-range attacks in Proof-of-Work (PoW). This innovative approach enhances the security of Web4 Layer2 by leveraging Historical Projection Technology to maintain the integrity of historical states and provide evidence against potential attacks, ensuring a secure environment for the platform.

Using Light Node Contracts to Verify the Security of Bitcoin Transactions

To interact with Bitcoin, verify the security of data on Bitcoin, and achieve the innovative use of smart contracts on Web4 Layer2, the functionality of BTC light node verification has been implemented. All execution nodes can submit Bitcoin maintenance data to the light node contract, which verifies data through mechanisms like difficulty checks and longest chain consensus, ensuring real-time consistency with low latency to the BTC network. As the data in the light node contract maintains low-latency real-time consistency with the Bitcoin network, all Bitcoin blocks confirmed by the light node are recorded in the contract state. When cross-chain transactions or synchronized transactions need verification, the SPV proof method can be used to validate the authenticity of these transactions by leveraging the stored Bitcoin block state in the light node contract, enabling operations like lending in Web4

Using Elections and Threshold Signature Technology

As a Layer2 of Bitcoin, it is a decentralized blockchain itself. Web4 Layer2 uses decentralized nodes to form a consensus committee, engaging in BFT consensus to generate chain blocks.

Anyone can run the Web4 Layer2 node program to access the real-time status of the Web4 Layer2 chain. Initially, to ensure the stability of Web4 Layer2, an invitation system will be used, inviting investment institutions, exchanges, media, Web4 Layer2 angel investors, and others to form the first batch of node service providers. Joining as a node service provider will require staking BTC or Web4 tokens to prevent malicious behavior. Nodes proven to act maliciously or negligently will face corresponding penalties on their stakes.

The election of consensus nodes takes place in the system contract. All users holding Web4 Layer2 governance tokens can acquire voting rights through staking and use these votes to elect different nodes. At the end of each election cycle, the current consensus committee Cn reaches a consensus on the next committee Cn+1 based on the election results.

The top N nodes with the most votes become winners and are responsible for generating data blocks and achieving consensus in the next cycle. Once the election results are determined, the closed election process begins, where successful completion of the corresponding tasks is necessary for a final successful election