With Bitcoin breaking through $70,000 and the upcoming Bitcoin halving expected, the BTC ecosystem has exploded, making the entire BTC ecosystem the focus of the Crypto industry.
In the field of cryptocurrency, Bitcoin (BTC), as the gold of the crypto world, has long won the favor of the market with its excellent security, decentralization and value storage functions. However, with the continuous evolution of blockchain technology and the surge in application demand, the limitations of Bitcoin's native chain (Layer 1) in smart contracts and scalability have gradually become apparent. In order to break through this bottleneck and lead the sustainable development of the Bitcoin ecosystem, the ecosystem urgently needs an innovative solution.
01 Technical Implementation Plan: HyperLayer+ZKBitsat aims to build a new network layer based on the Bitcoin network - HyperLayer through ZK technology to achieve scalable, secure, and low-cost transaction processing and asset transfer. At the same time, through VM Engine, the Bitcoin ecosystem can realize smart contract functions and be compatible with the EVM ecosystem. Project Features Smart Contract and DeFi Support: Bitsat's HyperLayer technology introduces smart contracts and decentralized application capabilities to the Bitcoin network, allowing users to build various applications and protocols on the Bitcoin network to reproduce DeFi Summer. High Performance and Scalability: Through asynchronous consensus mechanism and optimized transaction processing methods, Bitsat achieves high performance and scalability, maximizes the throughput of each consensus group, and improves network efficiency. Security: Secure Multi-Party Computation (SMPC) is used to achieve account asset control and management. At the same time, the security of the Bitcoin network is inherited through UTXO verification and zk-proof to ensure asset security.
Compatible with EVM: Compatible with Ethereum Virtual Machine (EVM), Ethereum developers can easily migrate their smart contract DApps to the Bitcoin network, expanding the ecosystem of the Bitcoin network. Low-cost transactions: By optimizing transaction processing and reducing network fees, low-cost asset transfers and transactions are achieved, providing users with a more convenient transaction experience. UTXO verification and zk-proof technology: Using UTXO verification and zk-proof technology, the transaction status is compressed and verified on UTXO, thereby achieving fast and low-cost Bitcoin transfers and improving network efficiency.
Technical Architecture Bitsat operates by creating a HyperLayer, whose core design includes three elements: a cross-layer communication mechanism established by ZK-Connector, a VM communication mechanism, a smart contract established by the virtual machine engine (VM Engine), and an asynchronous high-performance consensus mechanism. HyperLayer compresses transaction states and verifies these states on UTXO. Verification is performed on UTXO, which means that when a transaction occurs, it does not need to record all information directly on the Bitcoin main blockchain, while inheriting the security of the Bitcoin network. This makes it possible for nearly instant and low-cost transfers between Bitcoins between parties, making small payments and daily transactions more feasible. By moving most transactions from the main blockchain, the super layer aims to alleviate congestion and improve the overall efficiency and availability of the Bitcoin network.
VM Engine: Introduces virtual machine execution abstraction to achieve compatibility with mainstream virtual machines, introduces smart contracts into the Bitcoin network, and supports low-cost migration of other decentralized applications (DApps).
Enhanced Dumbo Protocol: Adopts an asynchronous consensus mechanism to ensure the high performance and scalability of HyperLayer, achieve ultimate atomicity, and maximize the efficient throughput of the consensus group.
Decentralized Assets Mint: Implement asset management through secure multi-party computing (SMPC), support ECDSA and Schnorr threshold signature algorithms, and realize secure asset transfer between the Bitcoin network and HyperLayer. ZK Rollup: Aggregate and compress HyperLayer data (including account status and contract status) and anchor it in UTXO based on ZK. UTXO carries HyperLayer data, including validity and other related information.
Dual-Mining: Bitcoin blocks carry transactions containing HyperLayer state data and zk-proof, and block miners receive additional incentives.
02 Relive Bitcoin DeFi Summer
03 Benefits to builders, traders and users In the development of the BTC Layer2 ecosystem, user attention, trader trading volume and developer participation are crucial, which is one of the necessary conditions for the success of a public chain. At present, BTC Layer2 is still in its infancy and faces the challenge of attracting users, traders and developers. For builders, traders and users, Bitsat has the following technical advantages: Builders: Enhanced Dumbo Protocol achieves high-speed processing of transaction throughput to meet the needs of large-scale adoption of decentralized applications. Transactions can be confirmed in real time, reducing network fees, and processing based on HyperLayer can significantly reduce network fees. Ensure the safe transfer of assets through zero-knowledge technology and realize trustless asset circulation. Decentralized applications can be quickly built on HyperLayer to achieve EVM compatibility.
Traders: Get a faster and safer trading experience while reducing transaction fees. Enhanced Dumbo Protocol and ZK Rollup technology ensure faster and safer transaction processing, and support the construction of SWAP and DEX on the chain. Users: Can trade more safely and quickly, and improve the liquidity of cryptocurrencies in DeFi. Decentralized applications can be built on the chain quickly and easily, and enjoy low transaction fees. It provides a better trading experience and more application choices, while promoting the development and innovation of the blockchain ecosystem. Bitsat's goal is to enable developers to build dApps with low barriers and security, and instantly support various EVM networks, so that traders and users can trade on Bitcoin Layer2 safely, quickly and at low cost. What's more attractive is that Bitsat will formulate an incentive plan to motivate technology developers and early supporters.
04 Roadmap
Comparison of BTC Layer2 Competitors
05 BTC Layer2 is booming, Bitsat is attracting much attention As the attention to BTC Layer2 continues to rise, it has not only attracted an influx of incremental funds, but also prompted major projects such as Merlin and BEVM to accelerate ecological construction. The upcoming Bitsat has become the focus of attention due to its innovative technical solutions and huge airdrop expectations. Although the cryptocurrency market is changing rapidly, BTC Layer2 is increasingly important as the key to improving the scalability and functionality of the Bitcoin ecosystem. Now is a good time for the development and layout of the BTC Layer2 project, and we look forward to the future development of this field together.
