Chapter 1: Introduction and Project Background

1.1 Emergence of NEWU

The NEWU project emerged from a vision to significantly enhance Bitcoin's functionality. With the advent of the Ordinals protocol, our team, comprising Bitcoin miners and researchers, recognized an opportunity to introduce revolutionary changes to Bitcoin's capabilities. NEWU aims to leverage the untapped potential of Ordinals to enrich Bitcoin's transactional efficiency and scalability.

1.2 The Ordinals Concept and its Application in NEWU

Ordinals, a novel concept in Bitcoin’s blockchain, reinvent the way data is stored and managed. By embedding larger data sets directly into Bitcoin transactions, Ordinals open up a realm of possibilities. NEWU utilizes this to introduce new transaction types, improved data storage solutions, and enhanced smart contract functionalities, pushing the boundaries of Bitcoin's original framework.

1.3 Challenges in the Bitcoin Network and NEWU’s Solutions

Bitcoin's current challenges include limited throughput, high transaction fees, and scalability issues. Beyond that, bitcoin miners' and users' motivations are not aligned. Miners, who benefit from high gas fees and congestion, want increased income through diverse channels facing halving that soon to come; Users on the other hand want usability and speed of the network. NEWU addresses these by integrating the Merge mining, L2, and bridge to streamline transaction processing, reduce costs for users, diversify and increase income for miners, and scale the network. This integration not only solves existing bottlenecks but also introduces new features like complex smart contracts, broadening Bitcoin's use cases.

Chapter 2: Project Goals and Objectives

2.1 Enhancing Bitcoin’s Functionality and Efficiency

NEWU is dedicated to enhancing Bitcoin by increasing transaction speeds, reducing costs per transaction for users, diversifying and increasing gain for miners, and introducing new transaction formats. Our objective is to process a higher volume of transactions with greater complexity without sacrificing Bitcoin's renowned security and decentralization.

2.2 Fostering User Adoption and Network Growth

Our strategy for user adoption revolves around demonstrating the practical benefits of NEWU, including reduced transaction fees for users and more versatile transaction types that increase the total gain of miners. By showcasing these advancements, we aim to attract a diverse user base, from individual users to enterprise-level adopters and gain collaboration with other POS chains, contributing to the overall growth of the Bitcoin network.

Chapter 3: Technical Approach

3.1 Implementation of Merge Mining in NEWU

NEWU adopts merge mining, a process that allows miners to simultaneously mine both Bitcoin and NEWU without compromising efficiency. This is achieved through Auxiliary Proof of Work (AuxPoW), where NEWU, as an auxiliary blockchain, accepts the proof of work done for the Bitcoin blockchain, the parent chain. By using the same SHA-256 algorithm as Bitcoin, NEWU can significantly enhance its network security. This method not only fortifies NEWU against potential security threats like 51% attacks but also leverages the robust mining power of the Bitcoin network, adding an extra layer of security.

3.2 Bitcoin Layer 2 Solutions in NEWU

In tandem with merge mining, NEWU leverages Bitcoin Layer 2 (L2) solutions to enhance transaction efficiency and scalability. By operating on a layer above the main Bitcoin blockchain, NEWU can process transactions more rapidly and handle a greater volume, thereby increasing throughput. This L2 approach enables the introduction of more complex features like advanced smart contracts, broadening the utility of Bitcoin's network. The Layer 2 solutions in NEWU are designed to complement Bitcoin's existing infrastructure, ensuring improved functionality without impacting the core blockchain's security and stability.

3.3 Timestamping POS Chain

In NEWU, a specialized timestamping service for Proof of Stake (PoS) chains is implemented. This service allows PoS blockchains to securely timestamp essential data such as transaction records and consensus events on the NEWU chain. This process enhances the security and integrity of PoS chains by providing an additional verification layer, making the data more resistant to threats like long-range attacks and censorship.

The timestamping mechanism in NEWU capitalizes on the robustness of Bitcoin's mining network, accessed through merge mining. This integration ensures that the timestamps are both reliable and verifiable. PoS chains can utilize these timestamped records from NEWU to reinforce their native consensus mechanisms, effectively resolving potential conflicts and enhancing overall network security.

Designed to be both minimalistic and efficient, NEWU's timestamping service is capable of supporting multiple PoS chains simultaneously. This approach not only strengthens the security frameworks of PoS networks but also contributes to a more interconnected and resilient blockchain ecosystem.

Chapter 4: Partnerships and Collaborations

4.1 Strategic Partnerships with PoS Chains

The NEWU project acknowledges the importance of a diverse blockchain ecosystem and is working to establish strategic partnerships with leading Proof of Stake (PoS) chains, such as Avalanche. These partnerships aim to foster cross-chain interoperability and leverage the strengths of both PoS and Proof of Work (PoW) systems. Through a potential collaboration with Avalanche, NEWU seeks to explore innovative solutions in areas like transaction speed, scalability, and network security.

Chapter 5: Roadmap and Future Developments

5.1 Developmental Roadmap

• Initial Phases: Focus on integrating merge-mining and Bitcoin Layer 2, followed by the implementation of the Ordinals protocol.

• POW powering POS: Our next goal is to tackle this realm, starting from EVM POS like Avalanche

• Technical Milestones: Aim for key technological advancements to enhance network capacity and functionality.

5.2 Future Growth and Collaborations

As the NEWU project evolves, we are actively seeking opportunities for new partnerships, especially with organizations that align with our vision of enhancing Bitcoin’s functionality. Future collaborations could include blockchain networks, technology providers, and financial institutions.