Bitcoin News Today: Build on Bitcoin Integrates ZK Proofs in Upgrade Toward Decentralization

Build on Bitcoin (BOB), a Layer-2 blockchain network seeking to introduce Ethereum-style decentralized finance (DeFi) capabilities to Bitcoin, has launched a significant technical upgrade that advances its journey toward full decentralization. The update integrates zero-knowledge (ZK) fraud proofs into an optimistic rollup framework, a shift that replaces the traditionally slower and resource-intensive fraud-checking process with a faster, cryptographic proof system. This innovation allows transaction disputes to be resolved in minutes, reducing friction for users and lowering barriers to securing the network [1].

The upgrade, dubbed the “Kailua” update, positions BOB to achieve Stage 0 on L2Beat, a platform that evaluates the maturity and decentralization of Layer-2 protocols. According to BOB co-founder Alexei Zamyatin, this milestone places BOB among 24 other protocols in L2Beat’s rollup rankings. “This upgrade will take BOB to Stage 0 on L2BEAT,” he stated, adding that reaching Stages 1 and 2—requirements for full decentralization—depends on completing a security council and finalizing code updates [1].

L2Beat’s criteria for decentralization include functional fraud-proof systems and the establishment of security councils. Protocols in higher stages must demonstrate robust governance structures and cryptographic security. Currently, only two protocols, ZK.Money v1 and Honeypot PRT, have reached Stage 2, highlighting the competitive landscape for Layer-2 solutions [1].

Zamyatin emphasized that the Kailua upgrade resolves a critical obstacle to achieving higher decentralization levels. “The biggest challenge of reaching Stages 1 and 2 is having a functioning proof system, which gives BOB full Ethereum security,” he explained. The remaining steps involve forming a security council with sufficient external entities and updating the codebase, both of which are already underway [1].

The implementation of ZK proofs also unlocks new possibilities for Bitcoin’s ecosystem. Zamyatin noted that the upgrade enables ZK verification on Bitcoin via BitVM, a technology that allows the same validity proofs used in BOB’s chain to be verified on the Bitcoin blockchain. This integration is a “key building block” for a Bitcoin-secured bridge that introduces smart contracts and programmability to the Bitcoin network. By anchoring these innovations in Bitcoin’s security model, BOB aims to serve as a gateway for Bitcoin DeFi, offering users and institutions access to native BTC through BitVM [1].

The move aligns with broader trends in blockchain innovation, where ZK-based solutions are increasingly seen as a bridge between scalability and privacy. Unlike traditional optimistic rollups, which rely on dispute periods and user participation for fraud detection, ZK proofs offer mathematical guarantees of correctness, reducing reliance on external actors. This approach not only enhances security but also accelerates transaction finality, a critical factor for real-world DeFi applications [1].

While BOB’s upgrade marks a step toward decentralization, challenges remain. The need for a functional security council and code updates underscores the complexity of achieving full decentralization. Additionally, the success of the platform will depend on widespread adoption of ZK-based applications and the ability to maintain Bitcoin’s lightweight ethos. Zamyatin’s vision of Bitcoin DeFi surpassing Ethereum and Solana with over 300 million users reflects an ambitious outlook, though such projections require careful validation [1].

The upgrade highlights the growing convergence between Bitcoin’s security model and the scalability demands of modern DeFi. By leveraging ZK proofs, BOB addresses a key limitation of Bitcoin’s current architecture while preserving its foundational properties. As the project progresses, its ability to balance innovation with Bitcoin’s core principles will be crucial to its long-term success [1].

Source: [1] [title1Build on Bitcoin adds ZK-proofs in upgrade toward decentralization] [url1https://cointelegraph.com/news/bob-zk-fraud-proofs-bitcoin-defi-l2beat]