🔴Fund security is directly related to the life and death of the public chain🔴
Detailed explanation of the security of Merlin Chain and how to protect 3.5 billion funds
Merlin Chain is a Bitcoin-native second-layer network that quickly achieved $3.5 billion in total value locked (TVL) and attracted over 200 projects. In order to ensure the safety of these funds, Merlin Chain has adopted multiple security measures in its architectural design:
Decentralized Oracle: Through a multi-token staking system, Oracle nodes decentralize power, improving the security and transparency of the system.
Diversified asset support: Supports $BTC, $MERL and other BRC20 assets, increasing the diversity of staking options and the system’s risk resistance.
Agent staking: Users can choose to pledge assets directly or through an agent, increasing flexibility.
Real-time monitoring: Allows users to view staking status and income in real time, as well as the performance of agent nodes.
Flexible withdrawal mechanism: users can withdraw assets at any time, ensuring the liquidity of funds.
Shared Data Availability Layer (DA) security with Celestia: By partnering with Celestia, Merlin Chain ensures verifiable publication of block data, thus enhancing the transparency and trustworthiness of the network. As a layered blockchain network, Celestia provides public data availability guarantees, allowing anyone to view and store the state of the Merlin Chain, which is critical to preventing data withholding attacks.
Verification towards Bitcoin's first layer: Merlin Chain ensures that all second-layer data is verified by Bitcoin's first-layer security by writing Rollup data and Taproot-based aggregated zero-knowledge proofs into the Bitcoin main network. This approach helps detect and prevent possible fraud or errors and ensures the immutability of data.
Asset Management: Merlin Chain’s asset management uses Cobo’s MPC wallet solution, a multi-party computing technology that can co-sign transactions without exposing private keys. This mechanism not only provides institutional-level security, but also ensures the safety of funds through measures such as hot and cold wallet isolation.
Security team cooperation: Merlin Chain established the Merlin Security Committee to cooperate with many well-known security teams to audit ecological projects, provide funds to support research, education and technology development, and encourage white hat hackers and dApp developers to join this decentralized organization. Work together to promote the security of the Merlin ecosystem.
On-chain monitoring: Merlin Chain supports on-chain monitoring through third-party independent platforms, such as mistTrack of the SlowMist team. This allows users to query the on-chain data of Merlin Chain and its ecological projects, monitor suspicious addresses, and track potential malicious behaviors, thus ensuring the security of funds and providing a transparent on-chain experience.
Through these measures, Merlin Chain strives to provide users and developers with a secure, transparent, and trustworthy Layer 2 network environment. As Merlin Chain plans to launch more security incentives in the future, such as Council Grants and Merlin Bug Bounty programs, its ecological security is expected to be further enhanced.
Fund security is the lifeline of blockchain projects, especially for Layer 2 solutions like Merlin Chain, which are growing at a rapid pace and must ensure that their security can match it. Merlin Chain’s continued investment and innovation in security is a key factor in its success
