blockchainreporter.net
BOB, a well-known platform in the decentralized finance sector, has released “Hybrid Layer 2 vision.” As per BOB, Hybrid Layer 2 vision marks a noteworthy move toward making Bitcoin a crucial player in the DeFi sector, while leveraging the top crypto asset’s renowned security apart from integrating the DeFi innovation of Ethereum. The platform announced this endeavor on its official X account.
Introducing the Hybrid L2 vision.
— BOB | Hybrid L2 (@build_on_bob) October 24, 2024
Bitcoin security and trust-minimized, BTC-secured bridges to Bitcoin, Ethereum and any other L1.
A blueprint for making Bitcoin the center of DeFi. pic.twitter.com/CeEQUSyIkn
BOB Releases Hybrid L2 Vision to Solve Bitcoin’s Issues Like DeFi Compatibility and Interoperability
The platform provided the details of this project in an exclusive whitepaper. It mentioned that Hybrid L2 vision solves a significant issue that Bitcoin has been facing for a considerable time. In this context, Bitcoin’s liquidity remains mostly untapped in the decentralized finance sector despite its secure and decentralized network. Most of the DeFi activity takes place on Ethereum as well as the rest of the smart contract-enabled blockchains. However, Bitcoin has been seeing a fragmented potential across multi-signature bridges and centralized exchanges.
Keeping that in view, BOB’s Hybrid L2 vision concentrates the liquidity of Bitcoin on a $BTC-secured decentralized finance entity. With this, it targets preventing $BTC’s fragmentation across diverse exchanges and chains. The objective is to establish an ecosystem to completely utilize the vast liquidity of Bitcoin in DeFi. In this way, the requirement for wrapping Bitcoin across several chains can be eliminated.
One of the prominent features of Hybrid L2 includes the emphasis on security. In the Hybrid l2’s final form, it will get Bitcoin’s security to provide trust-minimized $BTC withdrawals and deposits. While local zero-knowledge verification is not available on Bitcoin, BOB uses BitVM technology for the development of optimistic rollups as well as secure bridges. This would not require a Bitcoin fork.
The Project’s Rollout Will Take Place in Phases to Make Bitcoin an Integral Part of DeFi
BOB focuses on building a future where the top crypto token works as the basis of an interoperable and decentralized financial ecosystem. Thus, Bitcoin-secured entities will take the place of centralized exchanges and will enable unparalleled interoperability between L1 chains like Polkadot, Solana, Ethereum, and Bitcoin. The Hybrid L2’s rollout is expected to take place in phases. The ultimate goal is to turn Bitcoin into a core part of the DeFi realm.