Bitcoin and decentralized finance (DeFi) continue to fortify their bond with new developments. In a notable move, Mintlayer, a Layer-2 protocol, has teamed up with Salus, a Web3 security services platform, to develop Thunder Network, a Layer-3 solution built on Bitcoin. This collaboration aims to bring significant gains in scalability, privacy, and transaction speed.
What Does the Partnership Bring?
Thunder Network will enable the use of Ethereum Virtual Machine (EVM) features in a Bitcoin-based application, allowing developers to create decentralized applications (DApps) while harnessing Bitcoin’s robust infrastructure. This partnership could pave the way for a broader ecosystem and new use cases in the cryptocurrency world.
The collaboration focuses on integrating zero-knowledge (ZK) technology into Layer-3 rollups, a critical step in Bitcoin’s blockchain ecosystem integration. Rollups are independent blockchains where users conduct transactions and later transfer this data to Ethereum. Mintlayer and Salus aim to offer a seamless, high-performance, secure, and private user experience on Thunder Network while maintaining Bitcoin’s decentralization principles.
Mintlayer Founder Enrico Rubboli commented, “Partnering with Salus is a significant step in our mission to enhance Bitcoin’s scalability. By integrating ZK, Thunder Network will improve transaction speed and privacy while providing robust EVM capabilities for application development on Bitcoin. We are excited to work with Salus to unlock Bitcoin’s full potential and shape the future of DeFi.”
Why Is the Layer-3 Market Important?
The Layer-3 market is valued at $713 million, with a 24-hour trading volume of $65.6 million. Prominent Layer-3 projects include Degen (Base), Xai, Orbs, Aavegotchi, and Dream Machine Token. Despite these developments, the Layer-3 sector has not yet generated widespread enthusiasm among leading crypto figures.
Concrete Inferences
– Developers can leverage Bitcoin for creating decentralized applications using EVM features.
– The integration of zero-knowledge technology in Layer-3 rollups enhances privacy and security.
– Thunder Network aims to offer a high-performance experience while preserving Bitcoin’s decentralization principles.
However, Layer-3 technologies face technical challenges. Ethereum co-founder Vitalik Buterin has pointed out issues like data availability and bandwidth, which need to be addressed for broader adoption.