Mar 7 - Mar 7, 2025
This decentralized framework allows for autonomous financial operations within Bitcoin's UTXO (Unspent Transaction Output) model without the need for custodial services or cross-chain bridges. The core of this framework is the ability to execute recursive transaction structures, enabling programmatic capital allocation while ensuring cryptographic ownership throughout the execution lifecycle.
The paper makes several key contributions to the field of blockchain technology and cryptocurrency. Firstly, it formalizes a recursive UTXO state management system that is proven to have termination properties, ensuring that transactions within this system can be completed in a finite amount of time. Secondly, it implements non-interactive zero-knowledge verification mechanisms. These allow for yield attestation without relying on external oracles, addressing common vulnerabilities related to trust and manipulation. Another significant contribution is the novel use of Merkle path verification for secure communication between agents, which enhances transaction graph privacy.
A practical aspect of the research is the empirical analysis of transaction fee economics. This analysis shows the protocol's viability under various network conditions, with experimental implementations on Bitcoin's signet testing environment yielding an annualized return of approximately 3.8%. This performance is notable as it maintains full node verification capabilities and ensures the preservation of sovereignty over assets.
The paper is available in full at GitHub and invites peer review to scrutinize the temporal security assumptions in its timelock cascade implementation, potential attack vectors in the agent communication protocol, and the cryptographic proofs provided. This research builds upon foundational work by Nakamoto in 2008, Maxwell's Confidential Transactions in 2015, and recent advancements in Bitcoin script optimization techniques following the activation of Taproot, marking significant progress in the domain of blockchain technology.
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