We are excited to announce the start of our validator operations on BounceBit testnet. BounceBit is building a BTC restaking infrastructure that provides a foundational layer for different restaking products.
Bitcoin Layer 2 solutions are undergoing a massive change. BounceBit introduces a paradigm shift, moving away from Layer 2 and drifting towards the concept of Layer 1 sidechain. Rather than tying itself to the constraining paradigms of existing Layer 2 solutions anchored directly to the Bitcoin blockchain, BounceBit distinguishes itself as a standalone Proof of Stake (PoS) Layer 1 ecosystem.
The Problem
After the bankruptcy of Genesis Trading, Babel Finance, and Celsius, the Bitcoin ecosystem was left with a significant void in financial service provision.
A major challenge for many BTC holders is the underutilization of their assets, leading to missed opportunities for profit, especially in burgeoning sectors like DeFi and NFTs.
You may also be interested in:
- Stakin Commences Validator Operations on Babylon testnet
- Stakin Commences Validator Operations on Allora testnet
Finally, the absence of a robust smart contract platform within the Bitcoin ecosystem limits the development of complex decentralized applications (dApps).
The Solution
Bouncebit will allow Bitcoin holders to earn yield on their idle BTC tokens, addressing a major gap in the previous financial offerings within the Bitcoin space. BounceBit is focused on integrating smart contract capabilities, thus enabling BTC holders to utilize their assets in more diverse and profitable ways.
BounceBit Quick Architectural Overview
Shared Security clients
Shared security clients (SSCs) are the applications of Restaking that will drive the ecosystem towards its full potential, such as various sidechains, including fast finality layers, data availability layers, virtual machines, keeper networks, oracle networks, bridges, and more.
BounceBit PoS chain
BounceBit’s first showcase of a SSC will be its BTC Restaking Chain. You can find the necessary info on how to connect Bouncebit’s testnet with your wallet on BounceBit’s documentation page.
Consensus mechanism
BounceBit’s PoS architecture incorporates a set number of node operators that can be selected as Validators. With BounceBit validators are required to stake both native BounceBit tokens and BTC, establishing a dual-token security system that not only strengthens the network but also enhances the intrinsic value of BTC by enabling its active role in network validation. This represents a hybrid model where each validator can accept both BBTC and or BB coins and there is no minimum number of tokens to be held.
EVM Compatibility
BounceBit is designed to be fully compatible with the Ethereum Virtual Machine (EVM) and Solidity, the programming language used for Ethereum smart contracts.
BTC Bridge
The BTC Bridge in the BounceBit ecosystem serves as the secure conduit for the transfer of BTC Tokens between the Bitcoin Network and EVM Chains, including BounceBit.
Explore BounceBit further
To stay updated on upcoming BounceBit developments, we encourage you to visit their Discord channel.
