Peter Todd summarizes findings from his review of soft fork and covenant dependent Layer 2 designs, focused on proposals that scale Bitcoin by letting multiple users share UTXOs.

The talk lays out what an L2 is in this context, what covenants are, and why shared UTXO L2 schemes typically require covenants to be viable.

Peter then surveys the major proposals, with special attention to Ark, the covenant types each approach relies on, what scaling is realistically achievable, and what new risks and tradeoffs these designs introduce.

Recorded live at TABConf 6 in 2024.