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Author: Vishal Kankani, Multicoin Capital Investment Team; Translation: Bit Chain Vision Xiaozou
On May 9, 2024, Multicoin announced that it led the Bitcoin native application platform ARCH 7 million US dollars of seed round financing.Arch’s biggest value in the world’s largest blockchain Bitcoin unlocks the potential of a centralized finance (DEFI).Participating in this round of financing is OKX Ventures, Big Brain Holdings, Portal Ventures, CMS Holdings, Tangent, etc.
In the past ten years, Bitcoin has been running like digital gold.Although there were discussions that enhanced the function of intelligent contracts more than ten years ago, the relevant efforts were all sinking, part of the reason is that a large number of people in the Bitcoin community believe that the corresponding pros and cons of the corresponding pros and cons.The ultimate mission.
At that time, the mainstream view of the Bitcoin community was to abandon all programmatic innovations and the expansion of his chain expansion, and played the greatest potential without sacrificing the final vision of non -sovereign currency.The emergence of Ethereum and other smart contract platforms is optimistic about this opportunity.
The smart contract platform has appeared for ten years.Some intelligent contracts, such as decentralized exchanges, borrowing markets, and stablecoins, have achieved their own product market fit.They are regarded as the basic component of the well -operated blockchain ecosystem.
Before the Taproot upgrade in November 2021, Bitcoin’s smart contract function was still very limited.Taproot upgrades can be easier to write complex script functions by increasing the witness field space to about 4MB by increasing the space.This allows developers to write the following script:
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Atomic swap transaction
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Sign more wallet
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Conditional payment
Later, in July 2022, Casey Rodarmor released the “Ordinal Theory”, that is, a Satoshs number scheme that allows tracking and transferring a single Satoshs, which unlocked the user to directly “inscription” to Bitcoin.The capabilities in the transaction, including images, texts, games, etc., thereby unlock the full -chain NFT on Bitcoin.These NFTs are not necessarily JPEG or songs, and they can also be proof of other chains.
The impact of TAPROOT upgrade and Ordinal theory is very great. Today, developers are experimenting with Bitcoin on a large scale for a long time.
1, Bitcoin development status quo
When writing this article, more than 50 teams are conducting various studies -Rollup, Driver Chain, side Chain, etc., to expand Bitcoin and make it more programmed.Most of these projects call themselves “Bitcoin Layer 2”, and in some cases, this is a relatively broad title.Some of these projects are available today, and others need to be achieved in the future, such as BITVM, OP_CAT, etc.
In this area, each team has a clear design balance.Several important variables related to design are:
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Custody mode
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Programmable
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Expand
We believe,In the short term, the first two points are the correct trade -offs:
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Perform native construction on Bitcoin -can support interaction with DEFI, and there is no restrictions on the assumptions of additional trust other than Bitcoin.
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Focusing on self -hosting models make Bitcoin more programmatic.
The typical Bitcoiner should be a safe madman.When it comes to Not Your Keys, Not Your Coins, Bitcoin users are the most paranoid users on the planet.It is not expected that Bitcoin holders will turn their BTC to a new multiple signatures, and give up even a little self -custody, or worse, to bear the risk of bridge.We are convinced of this, because WBTC and TBTC have appeared for many years, but accumulated a total of less than 1%.There is no sufficient market demand at all to undertake bridges/centralized risks to achieve programmable income.
In addition, we also see that most of the TVL on Ethereum stays on L1 instead of L2 like Base, Arbitrum or Optimism.
To truly unlock DEFI in Bitcoin, developers need to come to the user’s base camp -Bitcoin L1.
Why do you pay more attention to BTC programming rather than scalability?
As a developer, if all you want to create a fast blockchain, there are many alternatives to developer ecosystems like Solana and a more mature market infrastructure.Even if we look at the status quo of Bitcoin technology from the most tolerant perspective, we are not ready to achieve a chain of high throughput without sacrificing custody. As mentioned above, this is impossible for most Bitcoiner.EssenceIn this regard, most developers who develop and build on Bitcoin are “alliances with Bitcoin”. They want to build the safest blockchain in the world, rather than a multi -signature disguised as L2.Within the current technical capacity of Bitcoin, we believe that the correct operation order is to give priority to programming and further promote the speed and scale along the route map.
2As well asArchBitcoin native application
Arch is creating the first Bitcoin native application platform.The ARCH network is currently in the test stage and is expected to launch the main network within a few weeks.
ARCH is a decentralized execution layer, focusing on enhancing the programming of BitcoinIt has a few interesting weighs in Bitcoin expression design:
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It acknowledges that most Bitcoin holders will not give up the hosting to turn to multiple signatures (almost all Bitcoin L2 is trusted more)Essence
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The core architecture allows TAKER to interact with applications without the need for new trust assumptions;Principles holding Bitcoin).
Technically,ARCH introduces the function of similar smart contracts to Bitcoin Layer 1 through a complex architecture to Bitcoin Layer 1This architecture uses a decentralized authentication node network and a specially constructed zero -knowledge virtual machine (ZKVM) -Archvm.The following is the general life cycle of transactions (technical -related) on the ARCH network:
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ZkvmTheThe core of the ARCH network is zero -knowledge proof (ZK certificate), zero -knowledge certification verification transaction to ensure the execution of certified security applications.ZKVM is a dedicated virtual machine, which executes the application and generates an encryption certificate for the correctness of the execution.It is supported by RISC0.
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Det decentralized authentication network:The generated ZK proof is subsequently verified by the ARCH decentralized authentication node network.The network plays a vital role in maintaining the integrity and security of the maintenance platform.By relying on decentralized architecture, ARCH is committed to ensuring that the verification process is not only safe, but also can resist review and central point failure.
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Integrated with Bitcoin Layer 1:Once the ZK is proved to be verified, the verification network can sign the unsigned transaction.These transactions, including the state update and asset transfer determined by the logic of the application, will eventually return to Bitcoin.In the last step, the execution process is completed, and all transactions and status updates are finally determined directly on the Bitcoin blockchain.
Although other items are positioned as Layer 2, we think that Arch is obviously the native Bitcoin nativeEssenceARCH positions itself as a Bitcoin native application platform in a unique way and runs directly on Bitcoin Layer 1.The direct operation of Arch Bitcoin’s main layer eliminates the complexity and inefficiency that L2 solutions usually face, allowing users to directly benefit from Bitcoin’s security and liquidity, while exploring the expansion capacity brought by Arch.
3,existArchDevelopment and construction
In the short term, DEFI applications (such as borrowing, decentralized exchanges, and Ordinal markets) are obviously constructed on Arch.It would be a great thing to achieve BTC income if you can achieve asset exchange, mortgage borrowing, and earning BTC without trust.
In addition, if high -end collectibles can stay completely in the most valuable blockchain (Bitcoin) known in humans, it is great.We predict that the world’s largest value digital collection will stay on Bitcoin, which is a huge technical breakthrough in itself, which will usher in the era of native financial of the Internet.Many Ordinals collectors obviously value this.
Several projects in the Bitcoin ecosystem have begun to migrate to ARCH.Recentsupport.As of writing this article, more than 20 projects have been developed on ARCH’s DEVNET. These projects have involved stablecoins, decentralized exchanges, and loan markets.As people’s excitement is getting higher and higher, the ARCH Foundation plans to support the development of ecosystems and funded a series of projects through the upcoming hackers.
4The next chapter of Bitcoin
With the support of Taproot upgrades and Ordinal theory, we have witnessed people’s unprecedented interest in the Bitcoin ecosystem.This is the first time in the past 15 years. Without damage to its non -sovereign currency vision, people actively work hard to make Bitcoin more programmatic.
ARCH is the first most valuable blockchain Bitcoin in the world to unlock the Bitcoin native application platform to connect to DEFI.The emergence of ARCH is a direct response to the Bitcoin community. They hope to use the underlying safety and liquidity of Bitcoin to achieve more complex applications, as they can see in other programming chains such as Ethereum and Solana.By providing Bitcoin’s programmatic platform, ARCH is consistent with the vision and principles of the Bitcoin community, and provides an innovative method to enhance the effectiveness of Bitcoin while maintaining the integrity of Bitcoin.
Arch invites people to re -examine the world’s largest and safest blockchain, and bring the progress and innovation of other blockchain back to Bitcoin.
