The Bitcoin developer says Brollups can support more than 90% of decentralized finance use cases, from NFT sales to token orders on DEXs.
4585 Total views
13 Total shares
Own this piece of crypto history Collect this article as NFT
The Bitcoin developer famous for exploiting a bug in the Lightning Network, causing it to issue an emergency update in 2022, is working on a new Bitcoin layer 2 aimed at bringing more decentralized finance use cases to Bitcoin.
Bitcoin developer “Burak” — who also created a Lightning Network competitor called Ark Protocol last year — has introduced “Brollups.”
Brollup is a layer 2 that offers a Bitcoin-native rollup design, bundling up transactions without needing to hard fork Bitcoin or issue a non-Bitcoin token, explained Burak.
In a June 21 Medium post, Burak noted that Brollups is still in the “design phase.” He told Cointelegraph that a signet (testnet) rollout could be on the cards for later this year.
Brollups will aim to support more than 90% of use cases in decentralized finance (DeFi) when it eventually launches, Burak said.
“Whether it’s listing an NFT for sale in exchange for Bitcoin where the buyer pays with Bitcoin upon execution, or placing a token sell order on a decentralized exchange, [all of this is] atomically executed, verifiable, scalable, and enforceable on Bitcoin.”Brollups are “deeply baked into Bitcoin and work natively with Bitcoin as a payable construct,” Burak added.
Source: Burak
Brollups will be managed by “operators” who will provide liquidity to the protocol and advance the rollup state by chaining Bitcoin transactions at “regular intervals.”
Transactions will be executed on the Bitcoin Virtual Machine.
Burak received considerable praise in the Bitcoin community for developing the solution without needing to hard fork Bitcoin or create a new token.
From hacking the Lightning Network to building a scaling competitor
In October 2022, Burak exploited the Lightning Network with a 998-of-999 multisignature Taproot transaction.
It triggered an emergency update for Lightning Network node operators after Burak’s efforts caused all nodes to temporarily fall out of sync.
Related: Bitcoin needs DeFi, consumer apps for mass adoption — L2 devs
No funds were stolen in the transaction — which cost a mere $5 transaction fee — but it highlighted an unintended consequence of the Taproot upgrade, industry pundits said at the time.
Source: Carman
Very few transactions utilized the Taproot upgrade until January 2023, when Casey Rodarmor launched the Ordinals protocol.
Taproot transactions comprised a record 46.4% of all Bitcoin transactions in December 2023, but that has since fallen to 30% this month, a Dune Analytics dashboard from Data Always shows.
Drivechain and the Spiderchain are among the other Bitcoin scaling projects focused on bringing DeFi functionality to Bitcoin.
In May 2022, Burak launched Ark, a Bitcoin layer-2 solution focused primarily on payments by negating the need for payment channels.
Magazine: Ordinals turned Bitcoin into a worse version of Ethereum — Can we fix it?
Explore more articles like this
Subscribe to our Crypto Biz newsletter
Weekly snapshot of key business trends in blockchain and crypto, from startup buzz to regulatory shifts. Gain valuable insights to navigate the market and spot financial opportunities. Delivered every Thursday
