ABCDE: Why we invest in B² Network

ABCDE Capital

24-01-25 21:18

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Source: ABCDE

Author: Kris

Bsquared Network (B² Network) is a leading Layer 2 project on BTC, successfully bringing smart contracts to BTC and unlocking the potential value of 832 billion market cap BTC. The project provides a new platform for innovative applications such as DeFi, NFT, and BTC derivative assets in the BTC ecosystem.

1. Unlocking the Value of BTC Ecosystem

The current issues with Bitcoin:

The performance issue of Bitcoin: The main focus of Bitcoin's initial design was decentralization and security, not peak performance. Due to its 10-minute block interval and limited block size, Bitcoin's throughput is severely limited, and it can only process a small number of transactions per second. As the Bitcoin user base continues to expand, this problem becomes increasingly prominent, leading to network congestion, transaction delays, and skyrocketing transaction fees.

The Turing incompleteness of Bitcoin: Bitcoin's scripting language is intentionally designed to be non-Turing complete, aiming to enhance the security and simplicity of the network. This means that Bitcoin cannot locally execute complex smart contracts, thus limiting its potential in the field of decentralized applications.

Transaction fee issue: With the growth of network traffic, users must pay higher transaction fees to ensure their transactions are prioritized for processing. This dynamic makes small or frequent transactions economically impractical.

B² Network is an evm compatible layer2 on BTC, which allows developers and consumers to directly experience the native Bitcoin layer2 network.

- Provide an off-chain transaction platform that supports Turing-complete smart contracts, improving transaction efficiency and reducing costs.

- By integrating zero-knowledge proof (ZKP) technology with Bitcoin's Taproot, the privacy and security of transactions are enhanced.

- This network aims to develop Bitcoin into a dynamic platform, providing a stage for innovative applications such as DeFi and NFT. It is not only applicable to traditional Bitcoin assets, but also to emerging Bitcoin derivative assets.

2. B² Network's Design and Advantages

B² Network's technical architecture is shown in the following figure, including two layers: Rollup layer and Data Availability (DA) layer. B² Network aims to redefine users' perception of Bitcoin's second-layer solutions.

B² uses ZK-Rollup as the Rollup layer. The ZK-Rollup layer adopts the zkEVM solution, which is responsible for executing user transactions and output-related proofs in the second-layer network. User transactions are submitted and processed in the ZK-Rollup layer. The user's state is also stored in the ZK-Rollup layer. Batch proposals and generated zero-knowledge proofs are forwarded to the data availability layer for storage and verification.

The data availability layer includes distributed storage, B² nodes, and the Bitcoin network. This layer is responsible for permanently storing copies of Rollup data, verifying Rollup's zero-knowledge proofs, and ultimately executing final confirmation on the Bitcoin network.

Distributed storage is a key aspect of B² Network, serving as a repository for ZK-Rollup user transactions and related proofs. Through decentralized storage, the network fundamentally improves security, reduces single points of failure, and ensures data immutability.

In order to ensure data availability, B² also writes a Tapscript script to the Bitcoin network in every block of Bitcoin, as shown in the figure below. The script anchors the data path and zero-knowledge proof of the Rollup that is effectively stored in decentralized storage during this period. This process is cost-controlled and generates 6 transactions per hour. Therefore, users will compare the transaction and Taproot script data on the Bitcoin Layer1 one by one when verifying to ensure the final credibility of the Rollup data.

In addition, B² Network will also convert the zero-knowledge proof verification process performed by B² nodes into a Bitcoin commitment and write it into the Bitcoin network. Challengers can compare the results of zero-knowledge proof verification with the Bitcoin commitment and discover any wrongdoing. They can then challenge and unlock rewards through the challenge mechanism, as shown in the figure below.

Through the above design, B² Network has achieved the following advantages:

- Trading costs reduced by 50 times, speed increased by 300 times.

- Users can interact by using wallets familiar to them, such as Unisat, Xverse, Metamask, and OKX.

- By utilizing account abstraction, it is possible to access BTC (bc1p...) or ETH (0x) addresses using their original format.

- Low cost:

->B² Rollup Layer's cost is the operational cost of the chain itself. When demand increases, horizontal scaling of RPC services and ZKEVM Prover is all that is needed.

-> B² DA Layer's cost is the operational cost of B² Nodes. The increase in Rollup transactions will not affect the B² Nodes.

-> The cost of Layer1 is the transaction fee of BTC itself. Each BTC block will include a Layer1 transaction, so the cost is fixed.

It is worth noting that B² Network will be upgraded in the future, with B² Nodes being upgraded to B² Hub. B² Hub will serve developers and projects that wish to build layer 2 Rollups on the Bitcoin network, providing a data availability layer and a state transition verification/proving system based on the Bitcoin network.