Bitcoin News Today: Build on Bitcoin Implements ZK Proofs in Kailua Upgrade Moves to L2Beat Stage 0

Build on Bitcoin (BOB), a layer-2 blockchain network aiming to bring Ethereum-style decentralized finance (DeFi) capabilities to Bitcoin, has introduced zero-knowledge (ZK) fraud proofs as part of a major technical upgrade. This enhancement, implemented within an optimistic rollup framework, replaces traditional and slower fraud-checking mechanisms with ZK proofs, enabling transaction disputes to be resolved in minutes via cryptographic verification. The update reduces barriers to network participation and positions BOB closer to achieving full decentralization status on L2Beat, a platform that evaluates the maturity and decentralization of layer-2 protocols [1].

The upgrade, termed the Kailua update, advances BOB to Stage 0 on L2Beat’s decentralization framework, aligning it with 24 other protocols in the rollup rankings. Co-founder Alexei Zamyatin noted that this milestone sets the stage for achieving higher rankings, with Stages 1 and 2 requiring fully functioning proof systems and a security council. BOB’s implementation addresses the primary hurdle—establishing a robust proof system—which Zamyatin emphasized provides the network with “full Ethereum security.” The remaining steps include forming an external security council and finalizing code updates, both of which the team states are in progress [1].

ZK proofs are pivotal to BOB’s broader strategy to integrate Bitcoin with DeFi and programmable smart contracts. Zamyatin highlighted that the upgrade unlocks ZK verification on Bitcoin itself through BitVM, a technology that allows validity proofs from BOB to be verified on the Bitcoin mainnet. This development is described as a “key building block” for a Bitcoin-secured bridge, enabling Bitcoin-native DeFi applications and cross-chain interoperability. By anchoring security to Bitcoin’s consensus, BOB aims to become a gateway for institutions and protocols seeking exposure to Bitcoin-based assets without compromising on decentralization [1].

The shift to ZK proofs reflects growing industry interest in balancing scalability with decentralization. Unlike traditional optimistic rollups that rely on slower dispute resolution mechanisms, ZK-based systems offer faster finality and reduced reliance on centralized sequencers. For BOB, this upgrade aligns with L2Beat’s criteria for evaluating decentralization, which include functional proof systems and community governance structures. Currently, only two protocols—ZK.Money v1 and Honeypot PRT—have achieved Stage 2 on L2Beat, while 22 are at Stage 0 or 1, underscoring the competitive landscape for layer-2 networks [1].

Zamyatin’s vision for Bitcoin DeFi extends beyond technical upgrades. He previously forecasted that Bitcoin DeFi could surpass Ethereum and Solana in user adoption, reaching over 300 million users [1]. This ambition hinges on BOB’s ability to demonstrate robust security and usability while maintaining compatibility with Bitcoin’s consensus rules. By leveraging ZK proofs and BitVM, the network aims to attract developers and institutional players seeking a Bitcoin-centric ecosystem without sacrificing the benefits of decentralized finance.

The integration of ZK verification into BOB’s architecture also highlights the broader trend of zero-knowledge technologies becoming foundational to blockchain scalability. As layer-2 networks compete to meet decentralization benchmarks, the ability to implement efficient proof systems will remain a critical differentiator. BOB’s progress on L2Beat indicates a strategic focus on aligning technical capabilities with community and institutional expectations, positioning it as a contender in the evolving DeFi landscape.

Source: [1] [Build on Bitcoin adds ZK-proofs in upgrade toward decentralization] [https://coinmarketcap.com/community/articles/68822d1e3e230565571b9c2f/]