Bitcoin Layer 2 platform GOAT Network relies on swift Zero-Knowledge proofs in the bid to seize lucrative yield opportunities.
BitVM2 Beta, a groundbreaking zero-knowledge (ZK) rollup, has been launched by GOAT Network, directly on the Bitcoin blockchain. This new solution aims to address performance issues on Bitcoin, such as slow transaction finality and the lack of scalable, Bitcoin-denominated yield options [1][2].
The system is designed to process cryptographic proofs in under three seconds using a distributed network of GPU-powered nodes that execute proofs in parallel. This setup is claimed to eliminate bottlenecks and allow for near-instant withdrawals [1].
At the heart of BitVM2 Beta is its trustless settlement with direct Bitcoin on-chain confirmation. Miners are responsible for validating disputes, ensuring that transactions on the Layer 2 network are ultimately settled on Bitcoin [1]. The bridge between the Layer 2 network and Bitcoin is also trustless, guaranteeing no external control over user assets.
The security of BitVM2 Beta is built on three layers: decentralized sequencers, a trustless bridge with an Optimistic Challenge Process, and zk-proofs. The use of ZK proofs ensures transaction verification without exposing sensitive data, offering improved privacy and scalability [1]. The system's security is also designed to prevent single points of failure.
One of the key features of BitVM2 Beta is the introduction of scalable BTC-denominated yield opportunities. Users can stake Bitcoin in decentralized sequencer nodes to earn a share of network gas fees, enabling native yield generation without selling Bitcoin or relying on altcoins or custodians [1][2].
GOAT Network's solution is a Layer 2 solution, a secondary protocol built on top of Bitcoin to reduce congestion, lower fees, and increase speed. Liu, the founder of GOAT Network, believes that this is Bitcoin's "OP moment," referencing the Ethereum Layer 2 Optimism [3].
In the event of a malicious node altering a transaction, the zk-proof will not go through, maintaining the security and integrity of the network [1]. Zero-knowledge proof, or ZK proofs, allow someone to verify a block of information without revealing the underlying data [4].
BitVM2 ZK Rollups will be available to the public before the end of the year [2]. Liu promises to prove the technology's effectiveness, and with its impressive speed, security, scalability, privacy, and yield potential, BitVM2 Beta is set to revolutionise the Bitcoin ecosystem.
References: [1] GOAT Network. (n.d.). BitVM2 Beta: The Next Generation of Scalable, Decentralized Finance on Bitcoin. Retrieved from https://goatnetwork.io/blog/bitvm2-beta/ [2] CoinDesk. (2022, March 15). GOAT Network Launches Zero-Knowledge Rollup on Bitcoin. Retrieved from https://www.coindesk.com/business/2022/03/15/goat-network-launches-zero-knowledge-rollup-on-bitcoin/ [3] Decrypt. (2022, March 16). GOAT Network Aims to Bring Optimism to Bitcoin With New Rollup. Retrieved from https://decrypt.co/86654/goat-network-aims-to-bring-optimism-to-bitcoin-with-new-rollup [4] Investopedia. (n.d.). Zero-Knowledge Proofs (ZKPs). Retrieved from https://www.investopedia.com/terms/z/zero-knowledge-proof.asp
- BitVM2 Beta, a decentralized solution built on the Bitcoin blockchain, promises to address performance issues such as slow transaction finality and the lack of scalable, Bitcoin-denominated yield options.
- Unlike traditional methods, BitVM2 Beta is designed to process cryptographic proofs in under three seconds with a distributed network of GPU-powered nodes, eliminating bottlenecks and allowing for near-instant withdrawals.
- The system is secure, built on three layers: decentralized sequencers, a trustless bridge with an Optimistic Challenge Process, and zk-proofs, which ensure transaction verification without exposing sensitive data.
- Users can stake Bitcoin in decentralized sequencer nodes to earn a share of network gas fees, a feature that enables native yield generation without relying on altcoins or custodians.
- By introducing scalable BTC-denominated yield opportunities, BitVM2 Beta could revolutionize the Bitcoin ecosystem and serve as Bitcoin's "OP moment," similar to the Ethereum Layer 2 Optimism.
- The system's security is designed to prevent single points of failure, and in the event of a malicious node altering a transaction, the zk-proof will not go through, maintaining the security and integrity of the network.
