Tech FAQs

1. Designed as a monolithic blockchain, how can you achieve modularity on Bitcoin?

Natively with its proof-of-work (POW) mechanism, Bitcoin does not have any Data Availability (DA) layer, relying on the distributed ledger that is maintained across all full nodes. Each node has a complete copy of the blockchain, ensuring no single point of control or failure can compromise the data's integrity or availability. Yala protocol introduces a novel approach with a modular layer in which the indexer plays a central role. Besides organizing and indexing data to enable efficient queries, the indexer acts as a validator between the Black and White modules that facilitate DeFi solutions for Bitcoin and inscription assets. Moreover, programmable modules would be embedded in the indexer to allow functionalities such as smart contracts and EVM compatibility, ensuring modularity.

2. How do the Black and White modules work?

Modules are classified into two types based on their functionality and the consensus level required for their operation:

  • Black Modules: support deposits but do not allow withdrawals.

  • White Modules: support deposits and withdrawals, contingent on universal acceptance by the network's indexers. Their dual capability makes them more complex and adaptable. They transition to 'white' status upon reaching consensus among all indexers, denoting full functionality, including withdrawals, ensuring consistency and stability throughout the network.

3. With the inscriptions, most of the core components are off-chain. How do you ensure the trustlessness and decentralized aspect?

The indexer and the oracle are off-chain at their core and current state. The Yala protocol would take the following steps to achieve full trustlessness and decentralization:

  1. Maintain and play a central role in a network of federated indexer validators

  2. Build and propose a standardized norm for the indexer, and open-source the code

  3. Educate community builders to adhere to this norm and contribute to the decentralization of the indexer

4. Can you be slashed?

Currently, the Yala protocol does not operate any nodes, so slashing is not within the scope. However, once the indexer is fully on-chain, we will establish rules for validators to ensure alignment and maintain a high level of service.

5. Are you a competitor of Bitcoin-based Layer 2 (L2)?

No, L2 solutions focus on scaling by handling transactions off-chain, aiming to improve transaction speed and reduce costs. We offer a modular approach, focusing on decentralized consensus and the DA layer. It will allow developers to create customized solutions without worrying about security and capacity. We would partner with layer 2 solutions, making us complementary rather than direct competitors.

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