Original title: Metis co-founder's ZKM plans to launch Bitcoin Layer 2 GOAT Network
Original author: James Hunt
Original source: theblock
Compiled by: Mars Finance, Eason
Summary
ZKM has launched GOAT Network, a second-layer solution for Bitcoin, which will be launched later in Q3.
GOAT Network has received commitments of 5,000 BTC from institutional node operators to date and plans to launch a Series A funding round soon.
Interoperability protocol ZKM has announced the launch of a Bitcoin Layer 2 solution due later in Q3, dubbed the GOAT Network.
According to a statement shared with The Block, the project claims that the solution will be the first decentralized Bitcoin Layer 2 with shared ownership of the network.
Kevin Liu, GOAT Network core contributor, ZKM co-founder and Metis co-founder, said: “GOAT Network’s launch of Bitcoin L2 is ZKM’s first step in integrating the decentralized Web3 universe. We firmly believe in decentralization and we are excited to have implemented a shared ownership model from day one.”
GOAT Network’s decentralized sorter model
Unlike some so-called Bitcoin Layer 2s, where the network and revenue are controlled by a project team or foundation, GOAT Network says it will launch with a decentralized sequencer model, where sequencer node operators will help secure the network while earning revenue on their bitcoin and fees from activities including block production, transaction ordering, and maximum extractable value (MEV) opportunities.
“GOAT Network is the first Bitcoin L2 to share network ownership and fees by decentralizing its sequencer,” the GOAT Network team told The Block. “GOAT is unique in that it enables the entire community, including small holders, to lock their BTC into sequencer nodes and earn sustainable returns.”
In terms of ZK provers, GOAT Network is using ZKM’s proof service. The team said: “The decentralization of the Proof Network will depend on the progress of the ZKM proof service.”
In a layer 2 rollup network, a sorter is a component that sorts and batches multiple off-chain transactions before submitting them to the main blockchain. A prover is a mechanism that generates cryptographic proofs to verify transactions without processing them on the main chain. These currently create a single point of failure and potential censorship risk that could have significant impacts on users.
In addition, compared with Bitcoin’s existing state channel decentralized Layer 2 Lightning Network, the GOAT Network is also compatible with the Ethereum Virtual Machine and supports smart contract functions.
Where does the profit come from?
GOAT Network claims that it has received commitments of 5,000 BTC ($287.5 million) from five institutional node operators to date. According to the team, the network plans to launch with the help of seven node operators and expand to dozens over time, with the goal of obtaining more commitments to ensure sufficient liquidity to support its Bitcoin yield and DeFi ecosystem.
“Yields will come from a variety of ways, such as gas fees in BTC, mining rewards in GOAT tokens, and returns generated in yBTC,” the team told The Block. “yBTC is a receipt token that users will receive after locking up BTC on the GOAT network. This yBTC receipt token can then be used to unlock more yield opportunities within the GOAT Network ecosystem.”
The team claims that launch-day dapps will include a leading DEX, lending, and perpetual swaps platform, enabling trading of BRC-20 and other Bitcoin-native assets, but no further details were provided.
“Universal Second Layer”
The project claims that the GOAT network is powered by ZKM’s Entangled Rollup technology, which enables native security on Bitcoin’s first layer. ZKM is a zero-knowledge verification system designed to enable seamless interoperability between different blockchains through a global settlement network.
The GOAT Network also plans to become a “universal second layer,” with Bitcoin being the first ecosystem it intends to integrate, followed by Ethereum, TON, Cosmos, etc. “Its goal is to solve the decentralized liquidity problem in the blockchain world by enabling any L1 to seamlessly connect to any L2 without the vulnerabilities of traditional third-party bridges. No other L2 can say this,” the team said.
“Tangled scaling is deployed across all blockchain infrastructure (layer 1 and 2 networks) and their states are synchronized via recursive zero-knowledge (ZK) proofs,” the team explained. “This enables messaging and asset transfers across many different networks without the use of third-party bridges or any other cross-chain mechanisms that are subject to vulnerabilities commonly found in bridges.”
“Bridges are the most fragile layer of blockchain interoperability,” the team added. “Tangle rolls are designed to roll transaction states, messaging, and ZKPs from one source chain and verify them in another chain. In this way, liquidity in different chains can be unified and utilized by cross-chain applications. Since smart contracts are rolled out to make cross-chain transactions happen, there is no need for bridge MPC (which is the most fragile part of the bridge).”
GOAT Token Economics and $5M Series A Funding Plan
GOAT Network also announced its token economics on Monday, allocating 42% of the GOAT token supply to serial mining and community mining, providing returns to node operators and participants who lock Bitcoin in the network. Another 6% is used for airdrop activities and 1% is used for KOL (key opinion leaders/influencers), which means that 49% of the total GOAT supply will be allocated to community contributors.
The team told The Block that the total supply of GOAT will be 1 billion tokens, but could not reveal further details at this time.
Ahead of the mainnet launch, GOAT Network also launched its “GOAT Club” rewards program on Monday, offering future rewards to bitcoin holders who “whitelist” 0.001 BTC or more, first-day dapp launch partners, and serial node operators who lock up bitcoin to secure the network.
GOAT Network said it also plans to launch a Series A funding round soon, with the goal of raising $5 million at a $100 million valuation. In May, ZKM announced that it had raised $5 million in a pre-Series A round at a valuation of $50 million, which closed in November 2023. OKX Ventures led the round, with participation from Amber, Crypto.com, Metis Foundation, and Polygon Ventures.
ZKM was incubated by Metis DAO, which is behind the Ethereum scaling solution Metis. In March, Metis launched an alpha version of its decentralized sorter as part of the Layer 2 network’s plan to fully decentralize its infrastructure.