The BTC ecosystem is booming, and BounceBit is showing its edge.

日月小楚

24-02-26 16:57

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Original Title: "BTC Ecological Surge, BounceBit Emerges"

Original Author: Ri Yue Xiao Chu

BTC ecosystem is surging, BounceBit shows its edge

With the wealth effect brought by inscriptions, the market is focusing on public chains related to BTC, including layer 2 networks/sidechains, etc. As we know, Ethereum itself has a market value of 350 billion, while the market value of its related layer 2, Dapp tokens, etc. has exceeded hundreds of billions of dollars. And with the arrival of the bull market, numerous ecological projects have emerged one after another, and the market value will continue to increase exponentially.

Compared to BTC, its market value has reached 1 trillion, but the total market value of related projects is only in the billions of dollars. This means that there is at least tens of times more space for the overall ecological projects, among which there will be several projects worth billions of dollars and countless projects worth tens of billions of dollars.

However, due to the limitations of BTC in terms of performance and smart contract support, the BTC main chain cannot bear the responsibility of ecological explosion. Therefore, BTC-related networks including layer 2/side chains are highly anticipated. After the popularity of the Inscription, a large number of projects emerged, and various heroes competed for the world. After all, the leader of ETH's layer 2 network has a market value of billions of dollars.

Nowadays, there are already three main lords showing their sharpness, one of which is BounceBit that I am going to introduce. BounceBit, created by the Bounce team, marks the first public chain that focuses on BTC heavy collateralization.

BounceBit Introduction

BounceBit's biggest feature is the introduction of a unique dual Pos staking system, which uses BTC tokens and BounceBit's native tokens to ensure security. BounceBit's architecture is fully compatible with the Ethereum Virtual Machine (EVM) and Solidity language, which means that a large number of ETH projects can seamlessly migrate to the BTC ecosystem.

The asset security of BTC is a relatively big issue, which directly affects the participation enthusiasm of BTC big holders. However, the security of BTC is not like the code vulnerability problem of Ethereum's smart contract. This is mainly because BTC itself does not support smart contract functionality. Now, many second-layer solutions are transferred to multi-signature wallets. However, in essence, the project party has the authority to directly transfer users' assets. Although large project parties should be trustworthy, BTC big holders will definitely have concerns, thereby affecting the overall asset participation rate. BounceBit provides a new solution, which is to use CeFi custody supported by Mainnet Digital and Ceffu, the only institutional custody partner of Binance. By adopting the asset management method of centralized exchanges to ensure the security of BTC assets.

In late January of this year, BounceBit launched the Water Margin event, which is similar to Blast's deposit mode. Two networks accept deposits: Ethereum and BNB Chain. On the Ethereum network, supported tokens include WBTC, Auction, Mubi, and DAII. As of today, it has a TVL of $450 million.

BTC Restake Mechanism

BounceBit's core innovation is the BTC Restake mechanism. In simple terms, assets on the BounceBit chain can be divided into three layers.

In the blockchain industry, BounceBit has introduced an innovative technology, the BTC Restake mechanism, which opens up new avenues for the appreciation of Bitcoin assets. This mechanism covers three levels of asset management, providing Bitcoin holders with a multidimensional revenue ecosystem.

First of all, what we see is the basic layer of Bitcoin assets. Here, Bitcoin itself and tokens such as BTCB and WBTC on BNBChain can be stored in centralized financial (CeFi) custody services supported by Mainnet Digital and Ceffu. The Mirror X technology provided by Ceffu ensures on-chain traceability and regular financial audits of assets to maintain the integrity and trust of the system.

Secondly, the hosted Bitcoin can be converted into an encapsulated version on the BounceBit chain. Here, Bitcoin becomes the so-called bounceBTC, which can be delegated to network node operators in exchange for stBTC vouchers or used directly for various applications.

The third layer is the re-collateralization of stBTC. Users can re-collateralize stBTC to other SSCs, such as sidechains, bridges, and oracles, or directly use it for various applications in the ecosystem. BounceBit Chain is fully compatible with the Ethereum Virtual Machine (EVM) and Solidity programming language, making it easy for developers to migrate their projects to this new ecosystem.

Triple benefits.

According to the description above, it can be realized that BounceBit generates profits in parallel for CeFi and DeFi. Users can earn CeFi profits while using LSD for BTC collateral and on-chain mining, a process known as "re-collateralization" in Bitcoin. This ecosystem provides triple profits for Bitcoin holders: original CeFi profits, node operation rewards for staking BTC on BounceBit chain, and opportunities to earn profits by participating in on-chain applications and Bounce Launchpad.

Double POS Mechanism

BounceBit also adopts a unique dual PoS (Proof of Stake) mechanism, emphasizing the importance of Bitcoin asset-driven infrastructure. Unlike relying on existing second-layer solutions, BounceBit serves as an independent PoS first-layer network, protecting network security through validators staking Bitcoin and BounceBit's native tokens. This dual-token PoS architecture not only increases network security but also enhances participant engagement.

BounceBit's PoS architecture consists of 50 validators, divided into two parts on average: one for BTC stakers and the other for BounceBit token stakers. This dual-token system not only expands the stakeholder base, but also weaves an additional layer of flexibility and security into the network's consensus structure. By establishing a dual-token security system, the network is not only strengthened, but also enhances the intrinsic value of BTC by playing a positive role in network validation and revenue generation.

BounceBox

BounceBox is an on-chain Web3 domain. BounceBox acts as a central hub, allowing users to customize Web3 projects according to their specific needs by selecting various tools and components from the BounceBit app store. This enables users to design, launch, and enjoy decentralized applications (dApps) in the BTC ecosystem.

BounceBox is a comprehensive repository of Web3 components, including decentralized exchanges (DeX), initial DEX offerings (IDO), and markets, all of which have undergone security and efficiency reviews. In addition, it also includes auxiliary tools for robot prevention and artificial intelligence for customer service, as well as necessary security plugins.