Alexei Zamyatin (Build on Bitcoin) on True Rollups on Bitcoin (EP.608)
Apr 2, 2025
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In this discussion, Alexei Zamyatin, cofounder of Build on Bitcoin, dives into the evolving landscape of Bitcoin rollups. He argues whether Bitcoin can match Ethereum's rollups and breaks down how the innovative BitVM and BitVMv2 are game changers. Topics include Bitcoin's unique DeFi potential, the risks of L2s possibly overshadowing Bitcoin, and the pressing need for soft forks. Zamyatin also shares insights on BOB's roadmap for 2025, emphasizing the crucial role of technical advancements and community governance in shaping Bitcoin's future.
The maturation of Bitcoin's technology and infrastructure is attracting high-profile DeFi players, indicating growing confidence in building solutions on Bitcoin.
Bitcoin rollups are currently at 'stage zero', with advancements expected to enhance their operational capacity and reach 'stage one' soon.
BitVM v2 significantly improves the efficiency of Bitcoin rollups, providing a more robust system that parallels Ethereum's optimistic rollups despite existing challenges.
Deep dives
The Evolution of Bitcoin's DeFi Landscape
The recent shift in focus towards DeFi within the Bitcoin ecosystem indicates a maturation of the technology and growing confidence among developers and users. High-profile DeFi players like Luilu and Michael from Curve are returning to explore opportunities in Bitcoin, which highlights the increasing interest in building decentralized finance solutions on this platform. This renewed drive suggests that the infrastructure is becoming more robust and capable of supporting these complex applications. With many Layer 2 protocols reaching mainnet, the excitement around Bitcoin's DeFi renaissance seems to be at an inflection point, signaling potential for future growth.
The Stages of Bitcoin Rollups
Currently, Bitcoin rollups are classified as 'stage zero', indicating that while they are on track, they are not yet fully operational as true rollups. The distinction between stage zero and stage one is critical, as stage one would signify the presence of a fault-proof system that operates independently. The comparative development strength of Bitcoin rollups is notable, as it is expected to accelerate in the coming years due to the lessons learned from Ethereum's development trajectory. As more projects focus on delivering fully operational systems, the Bitcoin space is poised for dramatic advancements in the rollup sector.
BitVM v2: A Technological Breakthrough
BitVM v2 represents a significant technological advancement for building optimistic rollups on Bitcoin by streamlining the process of verification and challenge-response. This version expands on previous iterations by enabling a more efficient proof mechanism, reducing the number of transactions needed for challenges. The creation of a multi-party system where even a single honest operator can secure the network further enhances the robustness of the protocol. By lowering the complexity and increasing accessibility, BitVM v2 positions Bitcoin rollups closer to par with Ethereum’s optimistic rollups, despite ongoing developmental challenges.
Challenges with Bitcoin Rollup Costs
One of the primary challenges facing Bitcoin rollups is the prohibitive cost associated with posting data to the Bitcoin blockchain, which is considered one of the most expensive databases. As more rollups emerge, the cumulative effect of increased transaction volume could inflate the cost of using network resources significantly. Innovations in data availability mechanisms may present potential solutions, yet fund managers and institutional investors are increasingly cautious about the cost implications of building on Bitcoin. Ultimately, the long-term sustainability of Bitcoin rollups hinges on balancing user access and operational expenses effectively.
The Road Ahead for Bob and Bitcoin DeFi
Bob, as a Bitcoin-focused Layer 2 project, aims to enhance its utility by transitioning to a hybrid design incorporating ZK rollups while maintaining Bitcoin’s security model. Plans include expanding DeFi applications, stable coin integrations, and introducing governance features for user participation. This proactive approach positions Bob to attract new users, particularly those outside the traditional DeFi ecosystem, and to stimulate interest in Bitcoin-focused services. By addressing both product development and governance, Bob aims to create a vibrant ecosystem that meets market demands while leveraging Bitcoin's reliability.