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Source: Masao of the Coin Island
What is BOB?
BOB belongs to a brand new L2 type: Hybrid L2.BOB is secured by BTC L1, the most secure L1, and uses this security to create a detrustworthy bridge to connect BTC, ETH and other L1 blockchains.Therefore, Hybrid L2 does not rely on third-party bridge tools to achieve interoperability, while also solving the problem of decentralized BTC multi-chain liquidity.
Note: Hybrid L2 is a BTC L2 solution designed to solve the main challenges of scaling DeFi on BTC L1.
Track analysis
The BOB project is positioned in the field of Bitcoin’s layer two solutions and DeFi (decentralized finance), especially in promoting interoperability between Bitcoin and the Ethereum ecosystem.By combining Bitcoin’s security and Ethereum’s smart contract capabilities, BOB aims to expand the functionality of Bitcoin to support complex financial applications, which is impossible on the traditional Bitcoin network.
How BOB works:
Hybrid L2 combines Bitcoin’s security with BitVM2 to build a bridge of trust minimization.With the strong support of the Bitcoin network, assets can be seamlessly transferred in Bitcoin, Ethereum and elsewhere without relying on third-party bridges.Bridge design only requires one real node in the network and does not require multi-protocol settings, which require security trade-offs.
BOB’s core technology
It is mainly reflected in the three core technologies of cross-chain bridging, light client and BitVM.
Light Client: BTC L1’s light client protocol allows nodes to perform payment verification without downloading complete blockchain data, with verifiable security and can be verified by other blockchains with smart contract capabilities.
Cross-chain bridge: Through the light client bridge, chain A and chain B can verify their respective consensus protocols through smart contracts to achieve trustless bridging of assets.
BitVM: A mechanism for executing arbitration procedures on BTC L1 in the OP mode, allowing users to access BTC from L2. As long as there is an honest node in the network, the deposit cannot be stolen.
BOBProject Advantages
1. Security
BOB uses Bitcoin’s Proof of Work (PoW) security model to provide the same level of security as Bitcoin by combining mining technology.This means that any attempt to attack the BOB must also be sufficient to attack Bitcoin itself, which is almost unfeasible in practice, because Bitcoin’s network is currently the largest and most secure PoW network.
2. DeFi and smart contract applications
BOB not only supports basic Bitcoin transactions, but also enables complex financial instruments and services (such as lending platforms, automated market makers (AMMs) and stablecoins) to be implemented on Bitcoin through smart contracts.This expands the scope of Bitcoin’s application and makes it a more comprehensive financial solution
3. Innovative financing and community incentive mechanisms
BOB projects encourage community participation and network growth through convergence points and airdrop mechanisms.These incentives not only increase user engagement, but also help maintain and develop the BOB ecosystem.
4. Open and scalable architecture
BOB’s architecture is designed to support future upgrades and extensions, including support for new cryptographic primitives and technologies such as zero-knowledge proof and off-chain computing solutions.This ensures that BOB can adapt to future market demands and technological developments.
BOB Financing and Important Events
Seed round financing: In March 2024, the BOB project completed a seed round financing of US$10 million.Leading investor: Castle Island Ventures
Participants: Mechanism Ventures, Bankless Ventures, CMS Ventures, UTXO Management, etc.
Strategic round of financing: In July 2024, the BOB project completed a strategic round of financing of US$1.6 million.
Leading investor: Ledger Ventures
Participants: BlackRock, Rarible, Ordinals, Aave, Curve, Threshold, Magic Eden, Mechanism, Injective, Vessel Capital, Babylon and Centrifuge and other well-known institutions and project parties.
October 25th Bitcoin L2 Project BOB releases Hybrid L2 White Paper
On October 30, BOB received a $870,000 grant from the Optimism Foundation.The ecosystem has previously attracted Coinbase and Kraken to build its standalone blockchain through the OP Stack toolkit.
In the future, the BOB project plans to start a Series A financing by the end of 2024, with an estimated target of US$30 million.Funds will be used to enhance the technical architecture, support further expansion of incubators, as well as global marketing and community building.
Project Name: BOB
Track: BTC ly2 (Bitcoin Level 2)
Release mechanism: lock 1 release 12
Total market value online: 2 billion to 5 billion US dollars
Time of visiting the institute: It is expected that in early January 2025, the network has been launched. TP wallet
BOB Hybrid L2 solves some of the most pressing challenges when building a decentralized financial system based on BTC L1.It provides the necessary infrastructure by creating a BTC bridge that inherits BTC L1 security and maintains minimization of trust, allowing users to join BTC L1 without relying on centralized service providers.At the same time, BOB bridges to Ethereum and other smart contract L1 chains with minimal trust, preventing the fragmentation of BTC liquidity and providing practical, BTC L1-based security for long-standing cross-chain interoperability problemsSolutions that make BTC the core of DeFi
