Chainwire – January 31, 2024, New York: The highly anticipated Bitcoin Layer 2 solution, Merlin Chain, has officially launched its testnet this week, with the mainnet set to debut within the next month.
Bitcoin’s Growing Pains and Scaling Solutions
The evolution of Ordinals in the past year has rekindled interest in the Bitcoin ecosystem, yet it has also strained network resources. Soaring transaction costs and Bitcoin’s rising value have intensified network congestion, deterring potential new users. To address this, the development of an EVM-compatible Layer 2 (L2) network has emerged as a practical solution, with Merlin Chain standing out as one of the EVM-compatible L2 chains, developed by the respected Bitmap Tech team, creators of BRC-420 protocols and Bitmap.game.
BRC-420 Protocol
The BRC-420 protocol facilitates the combination and recursion of various file formats, transforming them into intricate inscriptions. Assets such as character images, game scripts, virtual machines, or AI models can become part of the Bitcoin ecosystem. Notably, the Blue Box, the core asset of BRC-420, has experienced significant growth, starting from a $0.15 inscription cost to reaching an all-time high floor price of $26,000. Assets like Mineral and This Song About NFTs, under BRC-420, have become actively traded on the OKX market, boasting 1000+ developers and 600+ collections.
Bitmap.Game
Bitmap.Game, a fully on-chain and decentralized metaverse project, is grounded in the Digital Matter Theory underlying Bitcoin. Open-sourced for universal client verification, Bitmap.Game has witnessed remarkable market capitalization growth from $3 million to an all-time high of $290 million. With over 30,000 holders, Bitmap has surpassed competitors, becoming the metaverse asset with the highest number of holders across all blockchains.
Unlocking Bitcoin’s Potential Through Innovative Magic
Merlin Chain emphasizes that Bitcoin’s Layer 2 should not merely focus on cost-effective money transfers or DApps; rather, it should drive innovation to unlock Bitcoin’s potential through its native assets, users, and protocols. Examples include creating games based on decentralized assets like Bitmap and empowering DeFi protocols based on BRC-420, ensuring two-way empowerment for NFTs and FTs. Such “Bitcoin-native” innovations aim to continually empower the ecosystem.
Leveraging ZK-Rollup for Efficient and Secure Scaling
To meet the higher throughput requirements and address safety concerns arising from the diverse ecosystem, Merlin Chain has adopted ZK-Rollup. This technology compresses numerous transaction proofs into a simple check-sum, enhancing transaction efficiency and scalability. Sequencer nodes collect and batch transactions, generating compressed data and proofs via zkEVM. These are then uploaded to the Bitcoin L1 taproot via a decentralized Oracle network, ensuring transparency and security. Oracle network nodes are required to stake $BTC to prevent improper activities, maintaining the system’s security.
Native Integration – Merlin Chain’s Bitcoin-Centric Approach
Distinguishing itself from other Bitcoin Layer 2 solutions, Merlin Chain adopts a “Bitcoin Native” approach. This reflects its commitment to developing the Bitcoin ecosystem and bringing more users and assets to Bitcoin. Supporting bitcoin-native wallets and adhering to the principles of “client agnosticism,” Merlin Chain allows users to seamlessly switch between L1 and L2 using their bitcoin wallets. The platform also plans to adopt BRC-20 as its governance token, aligning with its “Bitcoin Native” philosophy.
Bridging the Gap – Simplifying Bitcoin Adoption and Fueling Growth
Merlin Chain addresses the challenge of attracting new users and funds to the Bitcoin ecosystem. Integrating with 40 Ethereum chains, users unfamiliar with Bitcoin can use their existing wallets and assets to interact on Merlin Chain. A multi-chain inscription DApp simplifies asset inscriptions on various layers, including Bitcoin L1. Additionally, a launchpad with a unique valuation mechanism ensures affordable asset purchases for users. Merlin Chain’s commitment to decentralization is evident through its plan to release most of its governance tokens to the community.
