Bitcoin News Today: Build on Bitcoin introduces ZK fraud proofs in Kailua upgrade to boost decentralization

Build on Bitcoin (BOB), a layer-2 blockchain network, has introduced zero-knowledge (ZK) fraud proofs as part of a significant technical upgrade, advancing its journey toward full decentralization. The update, part of the Kailua upgrade, replaces traditional, slower fraud-checking mechanisms in an optimistic rollup framework with ZK proofs, enabling transaction disputes to be resolved in minutes through cryptographic verification [1]. This shift aims to reduce friction for users and lower barriers to network participation while aligning BOB with the decentralization criteria set by L2Beat, a platform that ranks layer-2 networks based on maturity and decentralization.

According to BOB co-founder Alexei Zamyatin, the Kailua upgrade propels the protocol to stage 0 on L2Beat, positioning it among 24 other rollup protocols in the platform’s rankings. Zamyatin emphasized that achieving stage 0 is a critical step toward reaching stages 1 and 2, which require functional fraud-proof systems and active security councils [1]. BOB has already addressed the primary challenge—implementing a working proof system—by integrating ZK proofs, which Zamyatin described as a move that “gives BOB full Ethereum security.” The remaining hurdles, such as establishing a security council with external entities and finalizing code updates, are currently under development [1].

The integration of ZK proofs also unlocks broader possibilities for Bitcoin-based smart contracts and DeFi. Zamyatin highlighted that the upgrades enable ZK verification on Bitcoin via BitVM, allowing validity proofs from the BOB chain to be verified on Bitcoin itself. This development, he noted, is a “key building block” for a fully Bitcoin-secured bridge, which could facilitate smart contracts and programmability on the Bitcoin network [1]. By anchoring these features in Bitcoin’s security model, BOB aims to serve as a gateway to Bitcoin DeFi, offering users and institutions access to native BTC through BitVM-powered infrastructure [1].

The move aligns with growing industry interest in Bitcoin’s potential to support DeFi applications. While Ethereum and Solana dominate the current DeFi landscape, Zamyatin previously predicted that Bitcoin DeFi could surpass both in user adoption, eventually reaching over 300 million users [1]. This vision hinges on protocols like BOB bridging the gap between Bitcoin’s security and the programmability required for decentralized finance.

L2Beat’s ranking system evaluates layer-2 networks using specific metrics, including the functionality of fraud-proof systems and the presence of security councils. Currently, 22 protocols have achieved stage 0 or 1, while only two—ZK.Money v1 and Honeypot PRT—have reached stage 2. BOB’s progress underscores the competitive landscape of layer-2 innovation, where protocols like Arbitrum One and Base Chain lead in total value secured [1].

The Kailua upgrade reflects a broader trend of leveraging ZK technology to enhance scalability and decentralization across blockchain networks. By combining optimistic rollups with ZK proofs, BOB aims to balance throughput and security, a strategy that could influence future developments in both Ethereum and Bitcoin ecosystems. As Zamyatin noted, the integration of ZK proofs on Bitcoin marks a pivotal advancement, enabling the network to offer Ethereum-like DeFi capabilities while maintaining Bitcoin’s foundational security guarantees [1].

Source: [1] [title:Build on Bitcoin adds ZK-proofs in upgrade toward decentralization] [url:https://cointelegraph.com/news/bob-zk-fraud-proofs-bitcoin-defi-l2beat?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound]