A new protocol within the EOS ecosystem has emerged to enhance the scalability and interoperability of Bitcoin and bridge the gap between the world’s most popular cryptocurrency and the emerging Layer-2 scaling solutions that aim to make it more useful. 

The new initiative is calling itself exSat, which positions itself as a kind of Docking Layer for Bitcoin. In a blog post, the team behind exSat explained that it’s composed of various protocols and mechanisms that serve to extend the Bitcoin data consensus layer and enhance its interoperability and scalability while retaining its strong security. It’s uniquely able to facilitate direct queries of BTC and ecosystem token balances to support the seamless flow of assets between Bitcoin’s native chain and various L2s. 

Bitcoin’s Scaling Barriers

exSat explains that Bitcoin’s legacy architecture is unable to scale and support smart contracts, leading to a dependency on trusted intermediaries and other off-chain solutions. However, that increases centralization within Bitcoin’s nascent ecosystem, and consequently introduces security risks.

The picture is further complicated by the fragmented nature of Bitcoin’s L2 ecosystem, which encompasses various asset formats. These hinder interoperability and increase liquidity fragmentation, creating problems for native Bitcoin DeFi before it even becomes an established thing. 

capture under the picture:Yves La Rose, CEO and Founder of ENF, is presenting exSat at the BTC L2 Conference in Hong Kong

exSat’s Solution

These are the challenges exSat wants to overcome with its novel Docking Layer, which is based on a hybrid Data Consensus Extension Protocol that merges the Proof-of-Work, Proof-of-Stake and Delegated Proof-of-Stake consensus mechanisms. 

exSat has designed a system that enables decentralized state data indexing for Bitcoin ordinals and other assets within its ecosystem. It leverages EOS RAM to support high-speed access and low-latency storage. These capabilities, together with its EVM compatibility, enable developers to use exSat to create smart contracts on Bitcoin with low gas fees in order to beef up its scalability and increase the utility of its network. 

The system incorporates PoW mining from Bitcoin’s traditional mining network to synchronize block data to exSat, ensuring that Bitcoin’s fundamental security is carried over to exSat’s platform. Adding to the mix, PoS by BTC Staking Validators enables BTC block data to be verified by validators, similar to tradition PoS chains, while the EOS-powered Data Consensus Extension Protocol enables exSat to utilize the ample block space of EOS’s chain for on-chain data storage for BTC ecosystem assets. 

In addition, exSat introduces decentralized state data indexing for native Bitcoin assets, including BTC itself, plus Runes, BRC20 and BRC721 tokens, ensuring true on-chain decentralized trust, smart contract support and EVM compatibility. Most importantly, this element allows BTC transactions to trigger the complex business logic required by advanced smart contracts. 

The third major element of exSat is its integrated smart contract platform, which combines EVM compatibility with universal gas fees for BTC, Bitcoin assets such as Ordinals, ETH and stablecoins. 

Last but not least, exSat’s network of synchronizers and validators represents the final piece of the puzzle. Synchronizers will facilitate bridging between BTC and exSat, ensuring that data is transferred between the main Bitcoin chain and its L2s quickly and accurately, employing the BTC PoW consensus. Meanwhile the validators will verify this data to ensure network security, with their work secured by their BTC and XSAT token stakes. 

According to exSat, the system provides both an incentive, through EXSAT staking, and also resistance to malicious behavior that could threaten the network. 

Traditional Bitcoin miners will be incentivized to work as Synchronizers with block generation XSAT token rewards, while validators will be required to stake 100 BTC to run a node and XSAT tokens to secure revenue rights. 

Evolving Bitcoin’s Utility

exSat said its innovative Data Consensus Extension Protocol represents a key milestone in Bitcoin’s evolution. By strategically linking Bitcoin and its Layer-2 networks, it brings enhanced scalability and interoperability while broadening the horizons of developers, who will be able to create more sophisticated smart contracts.  

As Bitcoin’s transition to a smart contract ecosystem accelerates, exSat believes its architecture will play a key role in that evolution, facilitating much greater utility for the world’s most valuable digital asset. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

EOS has announced a new solution aiming to improve Bitcoin’s scalability and compatibility with layer-2 networks.

EOS Network, a blockchain platform powered by the EOS virtual machine, has announced the development of exSat, a docking layer, aimed at bridging the gap between Bitcoin‘s mainnet and a diverse array of layer-2 scaling solutions within the Bitcoin ecosystem.

In a blog announcement on Apr. 10, the exSat Network team said their solution could potentially expand Bitcoin’s data consensus to enhance “interoperability, scalability, and security within the Bitcoin ecosystem.”

“By facilitating direct queries of BTC and ecosystem token balances, exSat enables a seamless flow of assets and information across different networks and Bitcoin layer-2 scaling solutions.”

The exSat Network team

You might also like: EOS Network Foundation urges community to reject $22 million settlement offer

Powered by a hybrid consensus mechanism that merges proof-of-work, proof-of-stake, and delegated proof-of-stake, exSat wants to expand Bitcoin’s functionalities by synchronizing block data between Bitcoin miners and the exSat Network.

Additionally, exSat implements decentralized state data indexing for native assets, enabling streamlined querying and improved interoperability across not only native BTCs, but also extensions like Runes, BRC-20, and BRC-721. The team also emphasizes opportunities for Solidity developers to build diverse applications on the new network, with support for universal gas fees for BTC, Ordinals, Ethereum (ETH), and stablecoins.

To participate in the network as validators, users would need to stake over 100 BTC (equivalent to around $7 million) to qualify as a validator node. Additionally, nodes must stake XSAT tokens to earn revenue rights.

Read more: EOS Foundation suing Block.one for $1 billion commitment breach

With the cryptocurrency market proving to be extremely volatile at the moment, the industry is witnessing some key events. According to Layergg, here are the key crypto events that happened in the last 24 hours.

Memecoin Meta Reaches Saturation

According to key Key Opinion Leaders (KOLs) in the crypto space, the “Memecoin meta” is reaching saturation. This suggests that the hype surrounding memecoins may be losing steam, and investors should be cautious when considering investments in this sector.

EOS Proposes New Tokenomics

EOS CEO, BigBeardSamurai, has proposed a new tokenomics model that would burn 80% of the total supply. This drastic change in the token’s economic structure could have significant implications for the value and scarcity of EOS tokens.

Staking and Vaulting Features Launched

Several projects have recently announced staking and vaulting features:

Forta ($FORT) has launched the $FORT Stacking Vault.

Galxe ($GAL) has announced a staking feature, with rewards for stakers in $ARB, $MERL, and $ZK tokens.

TreasureDAO ($MAGIC) has launched a Ruby testnet V1 and plans to add dual staking of MAGIC and ETH in the future.

Protocol and Game Updates

Multiple protocols and games have announced updates and partnerships:

Maverick protocol ($MAV) has teased the upcoming release of Maverick V2.

Pixels ($PIXEL) announced that the Chapter 2 update is about 90% complete and will be rolling out in 2-4 weeks.

Puffverse ($RON) plans to launch PuffGo on Ronin, with migration details to be announced on April 29th.

xSociety ($SUI) has partnered with Sui Network to launch a game on Sui before the end of the year.

Explosion in Meme Coin Market; How to find potential successors to $WIF, $PEPE, and $BONK?

The key? Getting in early, especially during the ICO phase. Check out NuggetRush today! This new memecoin combines play-to-earn gaming with authentic gold mining ventures. Seize the opportunity with ongoing presale prices! Plus, prepare for $NUGX’s upcoming launch on major exchanges.

Show more +Show less – Stargate V2 Proposal Voting Underway

Stargate ($STG) has started voting on the Stargate V2 proposal, which will remain open until April 28th. The outcome of this vote could have significant implications for the future development and direction of the Stargate platform.

Mainnet Launches and Upgrades

Two projects have announced mainnet launches and upgrades:

Trias ($TRIAS) announced that the launch of Phase 1 of its mainnet will take place in late April.

Viction ($VIC) announced World Wide Chain, a new framework designed to empower Viction appchains’ economy.

US Regulator Seeks Penalty Against Do Kwon and Terraform Labs

In a significant regulatory action, a US regulator is seeking a $5 billion penalty against Do Kwon and Terraform Labs, the entities behind the collapsed $LUNA, $LUNC, and $USTC tokens. This action highlights the increasing scrutiny and enforcement measures being taken by regulators in the crypto space.

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