Skip to main content

The Ideal Bitcoin L2

Bitcoin forms a defensive layer for the entire web3 space, manifesting its core values in code:

  • Scarcity: The total supply of Bitcoin is capped at 21 million coins, ensuring its rarity.
  • Immutability: Once transactions are recorded on the Bitcoin blockchain, they are permanent and cannot be altered or reversed.
  • Decentralization: Bitcoin operates without a central governing body. It is maintained by a distributed network of nodes, ensuring open participation and resistance to censorship and external authoritative interference.
  • Portability: Bitcoin can be seamlessly transferred to any recipient globally, available 24/7.

New experiments relying on these values can flourish and trade some of these values to favor innovation and novel use cases. In turn, successful experiments can be adopted by Bitcoin itself, further strengthening the Bitcoin ecosystem. By default, creation should not weaken Bitcoin's core values but expand them within a dedicated ecosystem.

Scaling, User Experience, and Privacy​

We believe that three changes are required to onboard the next wave of Bitcoin users:

  1. Scaling: Bitcoin will be a settlement layer, with most transactions happening on L2s. There will be various L2s making different trade-offs in how they are designed, resulting in a spectrum of L2s. L2s for payments will trade general programmability for faster settlement and lower complexity. L2s for DeFi will favor access to various assets, protocol composability, and reuse of EVM code and libraries over core protocol simplicity. Among this spectrum of L2s, BOB places itself as a general-purpose L2 with a focus on programmability and composability.
  2. User Experience and Security: Multiple wallets and self-custody setups are difficult even for experienced blockchain users with failures and hacks being a common occurrence. User experience must improve to surpass centralized service providers while maintaining safety to user funds. With account abstraction and smart contract wallets, BOB enables users and projects alike to profit from the innovations made to provide social recovery, gasless transactions, and other UX improvements.
  3. Privacy: Having each and every transaction for everyone to see publicly is not a viable option for many use cases. Privacy is a fundamental human right and a requirement for many use cases. BOB's technology stack is designed to enable protocols to enable privacy-preserving alternatives.