DeFi
New Layer 2 Brollups to Boost Defi Use Cases on the Bitcoin Network
Bitcoin developer Burak has outlined plans for a new Bitcoin Layer 2. The innovation will strengthen the flagship cryptocurrency’s use cases in the decentralized finance space.
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“Brollups,” as Burak calls it, is a rollup design native to Bitcoin.
A different approach
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Roll-ups are a layer 2 solution that involves taking transactions off-chain to improve network throughput. Transactions are grouped into a single transaction and sent back to the main chain.
This way, the main network avoids congestion during periods of high usage. As a result, transaction costs are also reduced.
However, Burak’s Brollups are different. The creator of the Ark protocol said in a recent media article that, unlike other accumulations, this approach does not require the creation of new tokens.
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Burak explained:
However, unlike sovereign rollups, Brollups are deeply rooted in Bitcoin and work natively with Bitcoin as a paid construct.
Brollups integrate directly into the Bitcoin blockchain without the need for a hard fork. Instead, they are managed by operators.
These operators provide liquidity and advance the accumulation state by chaining Bitcoin transactions together at regular intervals. As such, transactions are atomically executed, verifiable, scalable, and enforceable directly on Bitcoin.
Additionally, transactions will be executed on the Bitcoin Virtual Machine (BVM).
According to Burak, Brollups will enable the Bitcoin network to support “90% of DeFi use cases.” This includes use cases ranging from NFTs to decentralized exchanges, all powered by Bitcoin.
At the time of publication, the approach remains a concept. However, he was well received by the cryptocurrency community.
Burak’s history with Bitcoin
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Burak was initially known for exploiting the lightning network. In October 2022, it exploited a vulnerability by creating a 998 of 999 multi-signature Taproot transaction.
The transaction caused the Lightning Network Daemon (LND) nodes to go out of sync, as they rejected the transaction by mistake. The exploit revealed a critical bug and prompted an emergency update.
A few months later, he triggered another bug which affected LND nodes and caused them to stop syncing due to an issue with the btcd thread parsing library.
The exploits highlighted the unintentional consequences of upgrading Taproot. Currently, Taproot transactions represent 30% of all Bitcoin transactions.
The usefulness was mainly powered by the Ordinals protocola way to create NFTs on the Bitcoin network.
For the moment, several Bitcoin rollup projects, like Citrea and Bison, are working to improve the scalability of the flagship network.
Meanwhile, projects like Stacks and Sovryn are focus on integrating DeFi features in the Bitcoin ecosystem.
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