BOB Launches Testnet for Bitcoin DeFi Hub Using BitVM

BOB, a layer-2 network, has launched its testnet in preparation for the mainnet launch scheduled for the fourth quarter of this year. BOB aims to create a decentralized finance (DeFi) hub by combining Bitcoin's security and reserves with Ethereum's programmability, utilizing the BitVM computing paradigm. This approach allows for faster and cheaper transactions without compromising Bitcoin's security.

BitVM, introduced by Robin Linus in late 2023, enables rollups on the Bitcoin network. BOB's bridge leverages BitVM to facilitate the transfer of BTC to the rollup and subsequently allows for its withdrawal. A key aspect of BOB's philosophy is the use of actual BTC rather than a wrapped version of the asset to power DeFi services. This contrasts with some projects that use wrapped bitcoin, such as Stacks with its sBTC token, to bring BTC's value into their ecosystems for DeFi applications.

BOB emphasizes that BTC on its platform remains native and is simply referred to as "BTC," similar to how ETH remains "ETH" on Ethereum rollups like Optimism and Arbitrum. Rollups like Arbitrum bundle transactions and settle them on Ethereum at a lower cost, using fraud proofs to ensure their correctness. BOB aims to achieve a similar outcome on the Bitcoin network.

Co-founder Alexei Zamyatin highlighted the distinction between BOB's offering and wrapped versions of BTC in a Telegram message. The testnet launch is supported by several major crypto firms, including staking developers P2P.org and Lombard, DeFi platform Solv Protocol, crypto venture capitalists RockawayX, and digital asset manager Amber Group, who will operate nodes on the BitVM bridge.