% 1.87
BTC Dominance:
% 0.09
Market Cap:
$2.13 T
% 0.20
Fear & Greed:
25 / 100
$ 58.519
BTC Dominance:
% 53.3
Market Cap:
$2.13 T

Bitcoin Developer Burak Introduces Brollups, a New Layer 2 for DeFi


Bitcoin developer “Burak,” famous for exploiting a bug in the Lightning Network in 2022, is now working on a new Bitcoin layer 2 solution called “Brollups.” This initiative aims to enhance decentralized finance (DeFi) use cases on the Bitcoin network.

Brollups: A Bitcoin-Native Rollup

Brollups offer a Bitcoin-native rollup design that bundles transactions without the need for a Bitcoin hard fork or the issuance of a non-Bitcoin token. In a June 21 Medium post, Burak explained that Brollups is still in the “design phase,” with a signet (testnet) rollout potentially scheduled for later this year. Brollups aim to support over 90% of DeFi use cases when it launches. Burak elaborated, “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.”

This Might Interest You: Analysts Predict Potential Bitcoin Decline to $52,000 Amid Bearish Market Signals

Brollups are designed to work natively with Bitcoin as a payable construct, managed by “operators” who provide liquidity and advance the rollup state by chaining Bitcoin transactions at regular intervals. Transactions will be executed on the Bitcoin Virtual Machine. Burak has received significant praise from the Bitcoin community for developing this solution without needing a hard fork or creating a new token.

In October 2022, Burak exploited a bug in the Lightning Network with a 998-of-999 multisignature Taproot transaction, leading to an emergency update for Lightning Network node operators. This incident, which cost only a $5 transaction fee, highlighted an unintended consequence of the Taproot upgrade. Although no funds were stolen, it caused all nodes to temporarily fall out of sync.

READ:  What are Flash Loans in DeFi?

Future of Bitcoin Scaling Projects

Burak’s Ark, launched in May 2022, focused on payments by eliminating the need for payment channels. Other Bitcoin scaling projects, such as Drivechain and Spiderchain, also aim to bring DeFi functionality to Bitcoin, indicating a growing trend in enhancing Bitcoin’s capabilities.

Click here to get the latest news from Coin Engineer!

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *