Gustavo

Human being living on planet Earth. #tech #crypto #family #faith 🇺🇸🇻🇪🇵🇪

[Joel Valenzuela @TheDesertLynx]

It was a huge pleasure having @PeterRizun on to go over the latest breakthroughs in crypto scaling.

It's crazy to think that we could do millions of transactions per second on super cheap consumer-grade hardware. 🤯

The whole block size war was around whether everyone can run a node. Well, looks like you can while scaling massively now.

Timestamps:

(0:00:00) Intro
(0:03:14) The UTXO vs. account model
(0:27:13) Using customized hardware to scale UTXO chains massively
(0:47:00) Which way will the crypto world scale?
(1:01:08) Can UTXO coins mass-scale privacy?
(1:05:23) What is Nexa?
(1:18:08) Wrap-up and shill-o'clock

[Gustavo @gus683]

@Kate_L_Mosso BCH

[Gustavo @gus683]

@astronomer_zero Best trader on X. I've learned quite a bit just from your public posts. Looking forward to what you have put together for education.

[BCH Intents Protocol @bchintents]

BCH Intents is launching soon. intent-based swaps. cashtokens. crosschain. on-chain settlement on bitcoin-cash:native.

[Bitcoin Cash (BCH) @BitcoinCashOG]

🧠 Mid-Week Geek Out: UTXO Tokens (CashTokens) vs ERC Tokens
Why the data model underneath tokens matters more than most people realise. Let's go deep on the tradeoffs.
This builds on the excellent comparison series exploring why Bitcoin Cash's approach is worth serious attention
.
1 The Fundamental Split
ERC-20 tokens live in smart contracts. Every transfer is a contract call. The EVM executes code, reads/writes a global balance mapping, and you pay gas for the computation + storage.

CashTokens (BCH's UTXO token standard) are different. Tokens are metadata attached to UTXOs - category ID, amount (fungible), optional NFT capability + commitment field. A transfer is just spending a UTXO and creating new one(s) with updated token data. The protocol itself validates the rules. No EVM-style execution for standard moves.

One is mediated by code. The other is enforced by consensus rules on explicit ownership.

2 Fees & Real-World Economics
This is where it gets practical fast.

CashTokens fees are basically regular BCH fees - tiny, predictable, and scale with data size, not computational complexity. Fractions of a cent to a couple cents, even during "congestion." Micropayments, daily rewards, in-game items, and high-frequency settlements stay economically viable on L1.

ERC-20 on L1 is variable and often painful. Gas spikes hurt. L2s help with cost but add bridging steps, finality delays, liquidity fragmentation, and extra UX surface area.

When your use case involves frequent or small-value movement, the UTXO model removes a major economic barrier.

3 Security & Attack Surface
CashTokens shrink the surface area dramatically for basic token operations:

- Rules are part of consensus (audited once at the protocol level).
- No reentrancy risk on simple transfers - there's no code running between "check" and "effect."
- No per-token deployment, no upgradeable proxies, no infinite approval footguns by default.

ERC-20 has a long, expensive history of contract-specific bugs (reentrancy, integer issues, access control, approval exploits). Even with mature tooling and audits today, every new token contract is a new potential failure point.

The tradeoff: ERC-20 gives you arbitrary logic in exchange for that expanded risk surface. CashTokens keep the base layer minimal and push advanced logic into covenants (more on that in a bit).

4 User Experience & Ownership
This one feels different in practice.

With CashTokens, tokens just appear in any compatible BCH wallet. You send and receive them like regular sats. No manual "add token" step, no separate gas token, no approval transactions for basic sends. Ownership is explicit - you hold the UTXO.

ERC-20 UX is more fragmented: contract addresses, approvals (and the risks that come with them), gas token management, and sometimes multiple transactions.

For mass adoption and everyday use, removing those extra steps matters enormously.

5 NFTs, Flexibility & The Real Magic
CashTokens have native, efficient NFT support with low fees and a powerful commitment field for arbitrary data (metadata, proofs, state hints).

But the deeper story is CashTokens + Covenants.

Covenants let you write scripts that introspect and constrain how a UTXO (and its tokens) can be spent in the future. You can build stateful, constrained logic - DEX logic, vesting, compliance rules, gaming mechanics, etc. - without exposing the full generality (and risk) of an EVM-style environment.

It's a different philosophy: powerful but deliberately constrained, auditable, and efficient.

6 Scaling, Composability & When to Use Which
- Throughput: UTXO model parallelises validation more naturally. BCH's scaling roadmap amplifies this for token-heavy activity on L1.

- Composability: ERC ecosystem wins on mature DeFi Lego and deep liquidity today (especially on L2s).

Best fit:
- CashTokens: Payments, micropayments, gaming economies, loyalty/rewards, high-volume simple transfers, anything where L1 cost and simplicity win.

-ERC-20: Complex financial primitives where maximum expressiveness and existing liquidity matter most.

They don't have to be enemies. Bridges and wrapped assets let value move between models. Specialisation is healthy.

7 The Bigger Picture
The UTXO approach isn't "dumber" or legacy. It's a deliberate design choice that prioritizes explicit ownership, parallel validation, minimal execution for common operations, and extremely low predictable costs on the base layer.

CashTokens bring tokens to Bitcoin's core strengths while adding just enough structure (categories, commitments, covenants) to make real applications possible without reinventing a global state machine for everything.

BCH isn't trying to clone Ethereum. It's extending the UTXO model that made Bitcoin work and applying it to tokens at the protocol level.

What use cases excite you most for this model? Payments? Gaming? Something with covenants?

Drop your thoughts below. Always happy to geek out more. 👇
#BitcoinCash #CashTokens #BCH

[BCH Intents Protocol @bchintents]

https://t.co/Q7ZNMjsUci

[Gustavo @gus683]

@fileiddiz @GamewithDave Just got this for 84c on steam and I can finally get past the first episode!! 30 years later..

[CryptoCon @CryptoCon_]

The overly bullish psychology at this low is even more apparent when Bitcoin is recovering.

At every other low this cycle, you had to go against the grain and the crowd to suggest that there would be new highs.

Now it's the opposite, the popular thought is this:

- Bottom is in
- No more bear markets
- 4 year cycle dead
- Business cycle says cycle just getting started

It's most difficult when you're in the moment, and you have to go against what everyone thinks is obvious.

[Gustavo @gus683]

@xsamsalvatore Ah that was you on coinbase

[Jason Dreyzehner @bitjson]

The May 2026 upgrade is now active on Chipnet at block 279,792! 🎉

This upgrade completes the restoration of Bitcoin Script on Bitcoin Cash (CashVM), making CashVM a simple, ultra-efficient, high-level programming environment for sound money.

Left: 2016 opcodes, right: 2026 opcodes 🔥 (source: https://t.co/DtwRUeTsCV)

Over the last decade, Bitcoin Cash has delivered:

• 2018: Opcode restoration (OP_CAT, OP_XOR, OP_DIV, OP_MOD, etc.),
• 2019: Schnorr signatures with multisig batch verification,
• 2020: Density-based signature limits,
• 2022: OP_MUL and introspection,
• 2023: Cross-covenant commitments (CashTokens),
• 2025: Density-based general limits and BigInts,
• 2026: Loops, functions, bitwise, and Pay-2-Script.

Each upgrade carefully preserved Bitcoin Cash's transaction-level parallelization, enabling global-scale, layer-1 throughput – without compromising Bitcoin Cash's scalability, decentralization, and censorship-resistance.

Fully-validating, archival BCH nodes run on consumer hardware and still outperform clusters of high-powered, centralized sequencers required by account-based networks.

With this upgrade, CashVM becomes even more powerful, allowing contract developers to efficiently implement post-quantum cryptography, homomorphic encryption, zero-knowledge proof systems, and more – without waiting for network upgrades.

Case Study: Quantumroot
Quantumroot is a quantum-secure vault contract design offering full 256-bit classical, 128-bit quantum security strength. Possible since May 2025, but made 10-100× more efficient by the 2026 upgrade: Quantumroot sweep transactions are 15% smaller per-UTXO than P2PKH wallets.

Upgrade Details

The 2026 upgrade includes four Bitcoin Cash Improvement Proposals (CHIPs):

Loops CHIP
Introduces the well-established, OP_BEGIN/OP_UNTIL loop construction to CashVM, bounded by the density-based limits activated in the 2025 upgrade. Loops eliminate duplication in repeated procedures, significantly reducing transaction sizes and enabling previously impractical constructions.

Functions CHIP
Enables factoring of contract bytecode into reusable functions with OP_DEFINE/OP_INVOKE, eliminating duplicated logic and reducing transaction sizes. Functions improve the efficiency of complex financial and cryptographic computations, including zero-knowledge proof verification, homomorphic encryption, post-quantum cryptography, and more.

Bitwise CHIP
Re-enables bitwise operations, including OP_INVERT for bit inversion, arithmetic shifts (OP_LSHIFTNUM and OP_RSHIFTNUM) for numeric values, and binary/logical shifts (OP_LSHIFTBIN and OP_RSHIFTBIN) for binary data. These operations allow CashVM contracts to more efficiently implement a variety of financial and cryptographic algorithms.

Pay-2-Script CHIP
Makes Pay-2-Script (P2S) outputs standard, enables longer token commitments (up to 128 bytes), and unifies the standard unlocking bytecode length limit with the consensus limit (10,000 bytes). These changes improve wallet ecosystem safety, simplify contract design, and reduce transaction sizes for many vault, multi-party covenant, and decentralized financial applications.Technical Specs

For more details, see the CHIPs:
- Loops: https://t.co/j3srDCzs1U
- Functions: https://t.co/iBblU1iZMC
- Bitwise: https://t.co/pb9VfV6veA
- Pay-2-Script: https://t.co/A87oonYh8J

[Jason Dreyzehner @bitjson]

Post-quantum vaults are now live on Bitcoin Cash's Chipnet, the 6-month-early preview network. 🔥

CashVM makes quantum readiness ultra-efficient: sweeps from quantum-ready addresses cut transaction sizes vs. P2PKH/P2WPKH by up to 10.9%, despite the increase from 20-byte hashes to 32-byte hashes (for highest-level, NIST Category 5 quantum security strength).

Users who regularly buy or earn Bitcoin Cash to a Quantumroot vault will save on fees after just 6 payments. 🚀

Maximum Quantum Security

With NIST Post-Quantum Cryptography Category 5 security, Quantumroot is expected to remain secure for decades into the post-quantum era.

Quantumroot implements the standard LM-OTS signature scheme (RFC 8554), which itself relies only on SHA256 for security – no lattice-based or other relatively-experimental cryptography. From a cryptographic-security perspective, Quantumroot is maximally conservative.

Low Transaction Fees

Bitcoin Cash's highly parallel architecture – the "UTXO model" – offers better performance and lower-level control than account-based systems, enabling Quantumroot to offer 100-1000× lower fees than equivalent vaults on Ethereum.

Privacy Nonces

Pre-quantum transactions do not expose associations between vault addresses: a 32-byte privacy nonce included in the hidden token-based spending path prevents even quantum attackers from connecting the address with recovery policies unless revealed by a post-quantum recovery.

Sweep-Free Upgrades

The hidden recovery path can be upgraded without sweeping the vault: only unassociated token UTXOs are moved on-chain. This simplifies user experiences and makes it easier for vaults to upgrade recovery, inheritance, or business continuity policies.

Other details:

- Post-quantum contract code adds zero bytes to pre-quantum spends.

- On average, post-quantum spends are just ~1.5KB per payment. (With sufficient aggregation, ZK-STARK BCH covenants/apps could improve this further.)

- P2PKH addresses can support 708 input sweeps per 100KB transaction; Quantumroot increases that to 891 inputs.

- Post-quantum sweeps can fit 868 inputs or 448 unique addresses per 100KB transaction.

For more details and links to on-chain transactions, see the blog post:

https://t.co/3cTtg4JwhM

For a deep dive and walkthrough of the CashVM contracts, see the August 20 tech talk:

https://t.co/CuGqwSxAxe

[BCH-1 @bch_1_official]

@bitjson just deployed the first post-quantum vault on Bitcoin Cash's preview network. $BCH

Built entirely with CashVM and covenant logic. No forks. No external trust.

The vault uses LM-OTS (RFC 8554), a NIST-standard, hash-based signature scheme designed to remain secure even under quantum attack. It’s implemented using only SHA-256 and native script.

A post-quantum vault lets you lock coins today with the option to recover them later using a quantum-secure key, without ever exposing a vulnerable path on-chain.

How it works:

– Coins are locked into a contract with two spend paths: Schnorr or LM-OTS

– A 32-byte privacy nonce obscures links between vaults and recovery keys

– Recovery paths can be upgraded without moving funds

– Enforced entirely via introspection and covenant logic

Why it matters:

– Secure BCH cold storage even in a post-quantum scenario

– No need to sweep coins when quantum risk materializes

– Composable with Cashtokens and other contract flows

– Typical post-quantum spends cost ~1.3 KB per UTXO (two-input, single-signature)

– Supports ~800+ inputs (≈400 addresses) in a ~100 KB transaction in post-quantum mode

It’s a native vault construction that extends BCH’s security horizon > NOW LIVE for testing on Chipnet.

→ https://t.co/vpwqT4RQBY

[Gustavo @gus683]

@BDCryptoGuru @grok 😁

[Gustavo @gus683]

@PixOnChain 🙋🏻‍♂️ only way I actually send and receive money to and from family in Venezuela

[Gustavo @gus683]

@DMinimilian $BCH

[Jason Dreyzehner @bitjson]

Resharing Q&A from a dev team: "what is the status of Bitcoin Cash in terms of Bitcoin Script and the latest Bitcoin soft forks? SegWit, Taproot?" Me:

BCH is computationally equivalent to ETH now, but BCH has significantly higher compute limits and lower fees.

As of May 2025, almost anything can be compiled or ported to CashVM, and by May 2026, CashVM will effectively be a high-level language: arbitrary precision math, loops, functions, etc. In general, you can do anything with ECDSA-like compute density (CPU-per-byte) up to 100KB of code/data (in standard transactions, 1MB nonstandard). Pay for a bigger transaction, get more compute.

(Re 2026 upgrade: many BCH stakeholders have already published lock-in approval statements – one of the 4 CHIPs had some contention earlier, but the disputing stakeholders have now endorsed that CHIP too. At this point, probably only discovery of an unfixable flaw would delay any of the 2026 CHIPs. Note that Nov 15 is the lock-in date + "chipnet" 6-month-early network upgrade, so after Nov 15, we'll be certain about which CHIPs are going into the May 2026 BCH upgrade.)

For a demo, here's the LM-OTS post-quantum signature scheme implemented precisely according to RFC 8554 (NIST adopted) in pure Bitcoin (Cash) Script: https://t.co/ZUdvP5GsE6. It's >2x more byte efficient than the WASM equivalent (I'll share more comparing them later)

And performance wise, this is an example that e.g. is not possible to build on Solana. I wrote a bit more about that here: https://t.co/keyQJ8gtYG, but TLDR: Solana's compute limits are too low per-byte + Solana's maximum transaction size is too small.

BCH transaction validation is "embarrassingly parallel" to an absurd degree, so we were able to clean up the limits over the past few years to actually reduce the worst case validation performance from pre-2017 requirements (i.e. BTC nodes need higher specs than BCH nodes today) while expanding contract capabilities to ETH levels.

BCH re-enabled many of the Satoshi opcodes + data signatures (from the stack) in 2018, a full set of introspection opcodes in 2022, native token primitives in 2023, and arbitrary precision math in 2025. The 2026 upgrade mainly improves code-factoring (trimming waste/duplication) vs. adding new capabilities.

I picked that LM-OTS scheme as a technical demo since it hits several critical thresholds vs. ETH and SOL. On BCH, these Quantumroot transactions are actually faster-to-validate-per-byte than "payments only" Bitcoin Cash transactions have been since 2009 (and likewise vs. BTC transactions).

Re screenshot: is an in-browser IDE (@BitauthIDE) I've built over the past few years. I'll be working a lot more on it this year (finally) now that CashVM is relatively feature complete – there's a lot more multi-transaction system design, invariant testing, constraint solving, symbolic execution, etc. capabilities I'd like to add.

Re BCH opcodes: not sure if there are any websites with pretty tables (maybe I should build one), but here's a full listing with descriptions I wrote – today's opcodes (last addition 2023): https://t.co/HCnBbKElJC and the 2026 additions (loops, functions, and some additional bitwise ops): https://t.co/wX2QSkSEvm

Re language: Bitauth IDE includes a very basic language and compiler I call "CashAssembly" that compiles to CashVM bytecode – it's just a way of writing raw data and opcodes with some basic variable support and other features. It's essentially what you see on the old Bitcoin wiki, but with some lossiness cleaned up.

The BCH space has other high-level languages too – CashScript is a JS-like stack (loops pending: https://t.co/GQrPXXIErJ) and AlbaDsl is a really promising Haskell DSL.

Remember though that Satoshi based the Bitcoin Script language on Forth (a high-level language of its own) – it's honestly great for building substantial applications from many small modules.

For heavy applications like ZK proof verification, it's hard to beat the low-level control of CashAssembly right now. I made lots of performance improvements to Bitauth IDE while working on Quantumroot, and I'll be happy to help fix any perf issues as your application grows.

Bitauth IDE has lots of built-in testing capabilities too, so I'm happy to help you set up "tested scripts" with scenarios and such. I wrote more about testing CashAssembly here recently: https://t.co/TyYZVX5Nsy

[Darth Powell @VladTheInflator]

Science is the pursuit of understanding God

[Steve 🇺🇸 @SteveLovesAmmo]

How I bring in the grocery bags.

Never make more than one trip.

[decentralistdan🛡ᙇ @decentralistdan]

“We’re going to wake up one day and people are going to realize financial privacy is important to them”

- @BarrySilbert

[Trust Wallet @TrustWallet]

100,000 $WCT. 10,000 winners. Who's in fam?

How to enter:
🔹 Like & RT
🔹 Follow @TrustWallet & @WalletConnect
👇 Complete the quest with Trust Wallet
https://t.co/kgjjGpzalf