The developers behind BOB, a project built on the Bitcoin network, have released a new “vision paper” detailing a design for a “hybrid layer-2” network. This initiative aims to establish Bitcoin as a foundational platform for decentralized finance (DeFi), a sector typically associated with newer blockchains like Ethereum and Solana.
BOB co-founder Alexei Zamyatin emphasized Bitcoin’s central role in the cryptocurrency ecosystem, asserting that “if Bitcoin breaks, then so does our industry as a whole, so we might as well use Bitcoin security for cross-chain DeFi.” Zamyatin, along with prominent developer Robin Linus, co-authored a research paper proposing essential improvements for enhancing programmability on Bitcoin.
The BOB project is termed a hybrid layer-2 network because it is built on Bitcoin while ensuring compatibility with Ethereum. According to the vision paper shared with CoinDesk, BOB aims to create trust-minimized bridges between itself and layer-1 blockchains like Ethereum, positioning Bitcoin as the anchor for DeFi activities and leveraging its security and liquidity, bolstered by its market cap of over $1 trillion.
Rather than wrapping Bitcoin (BTC) into DeFi-compatible chains, users will deposit assets from various chains onto the BOB network, enabling them to access native Bitcoin liquidity and secure withdrawals. The fees generated by BOB will also contribute to Bitcoin’s security budget, enhancing its overall robustness.
BOB’s Unique Architecture
The BOB project, which secured $10 million in seed funding in March, employs BitVM2, an open-source software that allows for the deployment of smart contracts on Bitcoin. This is achieved through compressing programs that are verified in BTC transactions, thereby preventing malicious activities.
The proposed architecture positions Bitcoin as the anchor chain, with Ethereum and other layer-1 blockchains confirming that BOB has finalized transactions on Bitcoin before permitting withdrawals. This approach capitalizes on Bitcoin’s inherent security and simplicity, as it is generally easier for other networks to verify Bitcoin than to develop a bridge that both Bitcoin and another layer-1 chain can validate.
According to the paper, users will be able to deposit and withdraw BTC from the BOB network as long as there is at least one honest node to manage disputes. This framework facilitates the creation of a trust-minimized bridge to Ethereum, secured by Bitcoin. BOB will bundle transactions executed on Ethereum and its layer-2 solutions, ensuring their correctness through Bitcoin verification.
“This design can be extended to the majority of layer-one chains that have smart contracts,” the paper notes, indicating BOB’s potential to enhance the DeFi landscape across multiple platforms.
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