04-15-2026Price:

The Frontier

Your signal. Your price.

BITCOIN

Quai Network hijacks Bitcoin security to fund programmable proof-of-work

Wednesday, April 15, 2026 · from 3 podcasts
  • Quai's SOAP protocol siphons Bitcoin's hash power to subsidize a competing smart contract network.
  • The project creates a private stablecoin backed by mining energy, not bank reserves.
  • This forces a Darwinian competition, breaking Bitcoin's security moat without a fork.

Quai Network functions as a friendly Trojan horse. Its core protocol, SOAP, allows miners to earn Quai tokens by mining Bitcoin, Litecoin, or Dogecoin. The network then sells those mined assets to buy and burn Quai, effectively draining value from the older chains to secure its own. Founder Dr. Karl Kreder admits the mechanism breaks the “moat” that has let Bitcoin stagnate.

If Bitcoin remains a simple store of value, Quai aims to absorb its security budget. Kreder argues this forces a Darwinian competition where only chains offering real utility - speed and programmability - survive. The endgame is a trustless bridge moving Bitcoin onto Quai’s faster, programmable base layer.

Quai scales proof-of-work not with Layer 2s but with an elastic sharding system. It automatically spawns new chains when a single shard nears saturation at 700-1,000 transactions per second. Kreder claims this avoids the super-exponential costs of rival architectures like Kaspa.

“It’s a friendly Trojan horse for the existing proof-of-work networks. We can take any of the older proof-of-work networks, merge-mine them, and use that to secure our network.”

- Dr. Karl Kreder, Bitcoin Takeover Podcast

Beyond scaling, Quai launches an attack on centralized finance. It introduces Qi, a private stablecoin pegged to the cost of mining energy. Kreder views tokens like USDT and USDC as tools of a financial panopticon, failing in geopolitical conflict. Qi creates an endogenous monetary system for high-frequency transactions, targeting Global South adoption.

The project lands as Bitcoin miners are already pivoting capital to more profitable AI compute. Quai’s model formalizes that capital diversion, threatening the economic model underpinning Bitcoin’s security. It’s a direct challenge: innovate or see your security budget repurposed by a faster, more functional chain.

Source Intelligence

- Deep dive into what was said in the episodes

Part One: Jimmy Saville: Britain's Unending NightmareApr 14

Also from this episode: (14)

Culture (9)

  • Jimmy Savile was a UK pop culture icon from the mid-1970s to late 1990s, starting as a DJ and becoming a ubiquitous television star.
  • Robert Evans argues Savile's prolific sex crimes were an open secret, not a shock, citing interviews where Savile bragged about aspects of his behavior.
  • Savile was born on October 31, 1926, in Consort Terrace, Burley, Leeds. He was the youngest of seven children and his mother was around forty when she had him.
  • Savile's autobiography contains a strange, mythologized story about nearly dying as an infant and urinating on his grandmother. His mother gave a contradictory account of a pram accident.
  • Savile grew up in a poor, Catholic family. His father worked for a local bookie, exposing young Jimmy to low-level organized crime figures.
  • While working alone in the mines, Savile learned to cultivate 'sheer oddness' for control. He once worked a shift naked to freak out his coworkers, a tactic he said led to a 'payday.'
  • Savile discovered hypnotism at a post-war agricultural camp, boasting he used it to persuade 'an unsuspecting female victim out of her clothes,' which made everyone else leave.
  • His first DJ experience, wiring a gramophone to a radio for a dance, electrified him. Savile said he loved the 'effect' and control of making people dance, not the music itself.
  • He became a professional cyclist, known more for his bizarre antics - like racing in a tuxedo - than his skill. This buffoonery led to a job as a race commentator, his break into broadcasting.

Society (2)

  • Evans notes Savile had a deeply weird, codependent relationship with his mother, Agnes, and never had a long-term adult romantic relationship.
  • Savile claimed his first date was with a 20-year-old woman when he was 12 or 14. He wrote that this taught him 'the ninety percent you can't see is just as important as the ten percent you can.'

History (2)

  • As a teenager during WWII, Savile profited from the black market. He then worked illegally as an underage relief drummer at the Mecca Locarno Ballroom, a hub for prostitution and crime.
  • He was conscripted as a 'Bevin Boy' to work in coal mines during the war. Savile's accounts of a severe mining injury are inconsistent with known timelines of his activities.

Psychology (1)

  • Savile displayed a morbid fascination with death and corpses from a young age, recounting with relish the discovery of a dismembered murder victim.

October 7th Foresight, Netanyahu’s Funding of Hamas, and the Settlers Murdering PalestiniansApr 13

Also from this episode: (13)

War (9)

  • Ari Flans argues the 2021 clashes at the Al-Aqsa Mosque and settler expulsions in East Jerusalem broke a long peace. That year, Hamas rockets killed 14 Israelis, internal Arab-Jewish riots erupted, and West Bank militants like Lion's Den formed.
  • Flans traces Hamas's strategic crisis to the post-2014 'silence' in Gaza. He claims the group faced internal pressure for transitioning from resistance to ineffective governance while Gazans' quality of life stagnated.
  • Flans cites a 2018 interview where Hamas leader Yahya Sinwar said Netanyahu's 'victory will be worse than defeat' and that Israel 'should take over Gaza'. Flans interprets this as Sinwar understanding a major war could trap Israel in a costly, open-ended occupation.
  • Flans contends Sinwar viewed the post-2014 status quo as 'poison' for Palestinian resistance. He planned October 7 to shatter that stagnation, expecting a catastrophic Israeli response that would reset regional dynamics and draw Israel into a prolonged, draining conflict.
  • Flans states concrete planning for October 7 likely began around October 2022, the same year Hamas repaired relations with Iran and Syria and its leaders visited Moscow. Israeli intelligence reportedly found a binder detailing plans on the border that month.
  • Flans references the 'Jericho Wall' intelligence document and reports from border observation soldiers warning of unusual activity before October 7. He notes a high-level Israeli security meeting occurred hours before the attack, but questions why drones or air power were not deployed.
  • Flans believes Netanyahu lacks a clear plan for Gaza's future, preferring indeterminate chaos. He claims Israeli and US officials explored suspending private property laws in Gaza for up to 7 years to enable large-scale reconstruction that would alter its urban demography.
  • A retired Israeli general told Flans the IDF had only destroyed about 25% of Hamas tunnels, sealing the rest with concrete. Soldiers reported Hamas repaired tunnels during the war, and the specialized material for total destruction was expensive and scarce.
  • Flans says Israel allowed suitcases of Qatari cash into Gaza pre-October 7 to maintain a calm status quo. The logic was to keep Hamas 'happy and fat' so it wouldn't attack, a policy Sinwar ultimately exploited.

Society (1)

  • Flans describes a third wave of radical settlers, 'hilltop youth', who adopt Palestinian attire like the keffiyeh and engage in 'Israelite' pastoral cosplay. He interprets this as a subconscious, autoimmune drive to claim nativity and empty the land, not purely ideology or cheap housing.

Politics (3)

  • Flans argues the Israeli left is dead because it failed to move past the Oslo framework, offering feelings instead of concrete plans. In contrast, the right advances active propositions like annexation, which resonates more with the public.
  • Flans observes a solipsistic Israeli mentality where questioning official narratives is seen as betrayal. He notes journalists must use terms like 'Judea and Samaria' instead of 'West Bank' to avoid backlash, and many Israelis believe global criticism stems from innate, ahistorical antisemitism.
  • Flans says life in most of Israel feels normal, not besieged, with the war fought far away. He claims Netanyahu's strategy is to create an 'image of victory' rather than achieve total wins, using conflicts with Iran and Lebanon as interchangeable fail-safes to maintain political control.

S17 E18: Dr. K (Karl Kreder) on Quai & Scaling Proof of WorkApr 12

  • Quai Network achieves 5-second block times using proof of work. Karl Kreder says this gives statistical finality for small value transfers within one block, but large values require waiting for economic finality.
  • Kreder argues Bitcoin's six-block confirmation rule only provides economic security up to about $1.2 million, based on a first-order attack cost estimate of $200k per block. He says Quai reaches practical finality in 30 blocks, or 150 seconds.
  • Quai uses 'workshares' instead of full blocks to sample hash rate. Kreder claims this provides faster finality than Kaspa at much lower computational cost for node runners.
  • Quai's SOAP protocol allows merge mining with other PoW chains like Bitcoin Cash and Litecoin. Miners earn only Quai, while the network sells the merged-mined asset to buy and burn Quai, aiming for net zero emissions.
  • Kreder says Quai currently offers miners 5-10% more profit per hash than mining Bitcoin, creating an arbitrage opportunity that attracts hash rate.
  • Kreder differentiates SOAP from the Cubic attack on Monero, stating Quai actually contributes security to the merged-mined chains and appears as a regular mining pool to their networks.
  • Kreder envisions SOAP enabling trustless bridging of assets like Bitcoin to Quai, creating a system where both networks share the same hash rate and security model, blurring the line between layer 1 and layer 2.
  • Kreder argues SOAP breaks Bitcoin's proof-of-work moat and forces all PoW chains to compete on utility, which he sees as the best outcome for sound money advocates.
  • Kreder claims proof-of-stake systems cannot function as money for sanctioned states like Iran, which he calls the 'ultimate test of moneyness.' He says Iran would take Bitcoin or Monero but never Ethereum or USDT.
  • Quai's sharding is automatic and triggered by high uncle rates when a single shard approaches saturation at 700-1000 TPS. The system then adds shards without organizational intervention.
  • Quai uses a 'lowerarchy' where zone chains are primary and higher-level chains (region, prime) emerge naturally from mining with higher difficulty thresholds, serving as an inter-chain communication layer.
  • Running a Quai validator currently requires 16GB of RAM, 100GB storage, a 4-core CPU, and a 10 Mbps internet connection. Kreder says these specs support a fully loaded single shard.
  • Quai implements 'cash-like' privacy using payment codes, enforced non-reuse of addresses, fixed denominations, and native bilateral coin joins. Kreder claims this scales better than zero-knowledge or ring signature schemes.
Also from this episode: (2)

AI & Tech (1)

  • Kreder recently changed his view on quantum computing threats after developing a physics model. He now believes logical qubit counts will reach 4,000-10,000, breaking current cryptography, and estimates a threat timeline around 2029.

Science (1)

  • Kreder claims to have unified physics by deriving all known phenomena from a singular object based on four axioms and the concept of 'distinguishability.' He used AI models adversarially to develop and critique the proof.