Bitcoin News Today: Build on Bitcoin Launches ZK-Proof Upgrade, Boosts Decentralization to Stage 0

Build on Bitcoin (BOB), a layer-2 blockchain network designed to integrate Ethereum-style decentralized finance (DeFi) capabilities with Bitcoin, has launched a major technical upgrade that enhances its decentralization efforts. The update introduces zero-knowledge (ZK) fraud proofs into an optimistic rollup framework, replacing traditional and slower dispute resolution mechanisms. This shift allows transaction disputes to be resolved in minutes via cryptographic proofs, significantly reducing friction for users and lowering barriers to network participation [1].

The upgrade, dubbed the Kailua update, positions BOB to achieve Stage 0 on L2Beat, a platform that ranks layer-2 networks by maturity and decentralization. According to co-founder Alexei Zamyatin, this milestone places BOB among 24 other protocols in L2Beat’s rollup rankings, with only two protocols (ZK.Money v1 and Honeypot PRT) currently attaining Stage 2. To reach higher stages, BOB must implement a security council with external entities and finalize code updates, both of which are already in progress. Zamyatin emphasized that the ZK integration addresses the critical requirement for a functional proof system, aligning BOB with Ethereum’s security standards [1].

The implementation of ZK proofs also enables BOB to explore ZK verification on Bitcoin through BitVM, a compatibility layer that allows validity proofs generated on BOB to be verified on Bitcoin’s mainnet. This development is described as a “key building block” for a Bitcoin-secured bridge, which could facilitate smart contracts and programmability on Bitcoin. By anchoring DeFi protocols and other chains to Bitcoin’s security model, BOB aims to position itself as a gateway to Bitcoin-based DeFi, offering users and institutions access to native BTC liquidity [1].

Zamyatin previously forecasted that Bitcoin DeFi could surpass Ethereum and Solana in user adoption, potentially reaching 300 million users. However, the success of BOB’s strategy depends on overcoming technical and governance challenges, such as ensuring the security council’s decentralization and maintaining the simplicity of ZK integration for mainstream users. The upgrade also underscores a broader industry trend toward leveraging ZK technology to enhance scalability and privacy without compromising decentralization, with projects like Starknet and Horizen similarly advancing ZK-based solutions [1].

By adopting ZK proofs, BOB narrows the gap between Bitcoin’s foundational role in the crypto ecosystem and the demand for programmable money. The move reflects a strategic alignment with Ethereum’s ZK-focused roadmap, which aims to integrate zero-knowledge virtual machines (zkEVMs) into its mainnet within a year. As L2Beat and other evaluators refine their criteria for decentralization, the ability to verify transactions efficiently and securely will remain a defining factor in the adoption of layer-2 networks.

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