Blockchain developers on Thursday announced a new platform aimed at bringing Bitcoin into the modern era of decentralized finance (DeFi). This is an industry that was largely independent in the original crypto networks.
The new platform, dubbed BitcoinOS, is being pitched as a “public good” that uses “sovereign rollups” to create the foundational layer for decentralized apps (dapps) on top of Bitcoin. The founders say any developer can contribute to it and build new tools in their preferred programming language.
“Sovryn rollups use Bitcoin as a data availability (DA) layer, in contrast to ZK rollups, where the rollup is controlled by a smart contract on the parent chain,” said BitcoinOS Core Contributor. said one Edan Yago. Decryption. “ZK rollup is not possible in Bitcoin because Bitcoin does not have such smart contracts.”
Although Bitcoin’s main blockchain is highly secure, it is slow compared to other blockchains and is known to be very expensive during periods of high activity. On the other hand, a true distributed transaction scaling solution has been missing for a long time due to limited programming languages.
Existing technologies such as sidechains (Liquid, Rootstock, etc.) enable faster transactions, but users must trust a centralized federated bridge to avoid having their funds stolen or frozen. It also suffers from a lack of liquidity with other blockchains, creating liquidity silos in DeFi projects that have yet to launch.
In contrast, BitcoinOS says it has everything developers want from a scaling solution with minimal trade-offs: scalability, programmability, interoperability, and a near-trustless security model.
Additionally, a Thursday press release from Sovryn, the DeFi project behind BitcoinOS, said the framework’s built-in fraud system “can prevent fraudulent transactions even by a single honest participant.”
“This allows for complete smart contracts, allowing any developer to launch their own rollups and configure all applications built on these various rollups, and all other roles It will be interoperable with Up,” Yago explained. This means that all rollups are built from the same modular parts, allowing all projects built on BitcoinOS to share users and activities seamlessly.
Sovryn started as a protocol on top of Roostock, but Yago said he began to see the limitations of the network’s technology. Despite this, the company has processed $2.2 billion in trades and loans and has $46.82 million in total value locked (TVL), according to DeFi Llama.
BitcoinOS represents the “second phase” of Sovryn’s plan to expand Bitcoin’s utility beyond being a global reserve currency. Stage 3, Yago said, is “building a world around Bitcoin as a real alternative to today’s stagnant, centralized economies, corporations, and national interests.”
According to CoinGecko, following the BitcoinOS announcement, Sovryn’s local currency SOV surged 60% to $1.37.
Edited by Ryan Ozawa.