- Build on Bitcoin (BOB) plans to port an Ethereum Virtual Machine to a Bitcoin L2, providing the network with smart contract capabilities while leveraging Bitcoin’s decentralisation and security.
- The L2 protocol has already raked in US$300M worth of on-chain value, with the ecosystem growing rapidly.
- The project’s Mainnet went live last week.
Ethereum has been the de facto ruler of decentralised finance since it was introduced to the world in 2017. The network’s explosion in popularity led to congestion issues, which in turn expedited the arrival of scaling solutions – something the blockchain world needed anyway.
These solutions, known as Layer 2s, have become the default method of accessing Ethereum’s Virtual Machine (and even some other DeFi protocols) thanks to their impressive speeds and low transaction costs. For a while, everyone just assumed that L2s were designed to benefit Ethereum – but what if they could revolutionise Bitcoin too?
Welcome to Build on Bitcoin. Or as I like to call him, BOB.
Related: Ethereum Network Rebounds, Sees Massive Growth as ETH Holds Above $3K
BOB Set to Bring the Best of Both Worlds
BOB is a Bitcoin-based L2 project that intends to connect the DeFi capabilities of Ethereum’s smart contracts to the security and grand scale of the Bitcoin blockchain. Essentially, BOB’s protocol will connect Bitcoin to an in-built EVM, allowing for smart contract capabilities and direct “asset flows and interaction between the two blockchains”.
The L2 also boasts several bridges which improve interoperability and even employs rollups to batch processes for fast and efficient transactions.
Simply put, Build on Bitcoin is trying to combine the advantages of the crypto world’s two most important blockchains. The protocol’s Mainnet went live last week, and thanks to a pre-commitment phase has already reached US$300M (AU$456M) in total value locked within its ecosystem.
BOB is another in a long line of Bitcoin innovations over the past 12 months. For a while, Bitcoin was simply viewed as a legacy blockchain without much room for innovation.
All of that changed in 2023 though with the advent of Casey Rodarmor’s Ordinals. These inscriptions, essentially bringing NFTs to the Bitcoin community, re-invigorated the development community and have transformed Bitcoin into a modern blockchain with untapped potential.
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