Is BOB jointly driven by Bit and Ethereum an L2 narrative?

What is BOB?

BOB belongs to a new type of L2: Hybrid L2. BOB is secured by BTC L1, the most secure L1, and uses this security to create a trustless bridge to connect BTC, ETH and other L1 blockchains. Therefore, Hybrid L2 does not rely on third-party bridging tools to achieve interoperability, while solving the decentralized BTC multi-chain liquidity problem.

Note: Hybrid L2 is a BTC L2 solution designed to solve the main challenges of expanding DeFi on BTC L1.

Track Analysis

The BOB project is positioned in the field of Bitcoin's second-layer solution and DeFi (decentralized finance), especially in promoting interoperability between the Bitcoin and Ethereum ecosystems. By combining the security of Bitcoin and the smart contract capabilities of Ethereum, BOB aims to expand the functionality of Bitcoin to support complex financial applications that are not possible on the traditional Bitcoin network.

How BOB works:

Hybrid L2 combines the security of Bitcoin and BitVM2 to build a trust-minimized bridge. With the strong support of the Bitcoin network, assets can be seamlessly transferred between Bitcoin, Ethereum, and elsewhere without relying on third-party bridges. The bridge design only requires one real node in the network and does not require multi-protocol setups, 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 the complete blockchain data. It has verifiable security and can be verified by other blockchains with smart contract functions.

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 an OP manner, allowing users to deposit and withdraw 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 and provides the same level of security as Bitcoin through merged mining technology. This means that any attempt to attack BOB must also be sufficient to attack Bitcoin itself, which is almost impossible 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 tools 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

The BOB project encourages community participation and network growth through integration points and airdrop mechanisms. These incentives not only increase user participation, but also help maintain and develop BOB's ecosystem.

4. Open and scalable architecture

BOB's architecture is designed to support future upgrades and expansions, including support for new cryptographic primitives and technologies such as zero-knowledge proofs and off-chain computing solutions. This ensures that BOB can adapt to future market needs 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. Lead investor: Castle Island Ventures

Participating investors: Mechanism Ventures, Bankless Ventures, CMS Ventures, UTXO Management, etc.

Strategic round financing: In July 2024, the BOB project completed a strategic round financing of US$1.6 million.

Lead investor: Ledger Ventures

Participating investors: BlackRock, Rarible, Ordinals, Aave, Curve, Threshold, Magic Eden, Mechanism, Injective, Vessel Capital, Babylon, Centrifuge and other well-known institutions and project parties.

On October 25, Bitcoin L2 project BOB released the Hybrid L2 white paper

On October 30, BOB received a grant of $870,000 from the Optimism Foundation. The ecosystem has previously attracted Coinbase and Kraken to join and build its independent blockchain through the OP Stack toolkit.

In the future, the BOB project plans to launch a round A financing at the end of 2024, with an estimated target of $30 million. The funds will be used to enhance the technical architecture, support the further expansion of the incubator, and global market promotion and community building.

Project name: BOB

Track: BTC ly2 (Bitcoin second layer)

Release mechanism: lock 1 and release 12

Total market value valuation after listing: 2-5 billion US dollars

Listing time: expected in early January 2025, TP wallet is now online on the network

BOB Hybrid L2 solves some of the most pressing challenges in building a decentralized financial system based on BTC L1. It provides the necessary infrastructure by creating a BTC bridge that inherits the security of BTC L1 and maintains trust minimization, enabling users to join BTC L1 without relying on centralized service providers. At the same time, BOB prevents the fragmentation of BTC liquidity through trust-minimized bridges to Ethereum and other smart contract L1 chains, and provides a practical, BTC L1 security-based solution to the long-standing cross-chain interoperability problem, making BTC the core of DeFi