How BeL2 differs from other Bitcoin Layer 2 solutions
BeL2 stands out by redefining the concept of Layer 2 solutions for Bitcoin.
Here’s how it differs:
Not a Bridge or Traditional L2
Unlike typical Layer 2 solutions or bridge protocols, BeL2 doesn’t assets across chains. It doesn’t create additional layers or sidechains.
Instead, BeL2 acts as a “proof tool”, connecting Bitcoin - transaction events with other EVMs (Ethereum Virtual Machines) and potentially other blockchains or payment systems.
Facilitating Communication, Not Asset Transfer
BeL2’s primary purpose is to act as a “proof tool” as Bitcoin as a settlement layer, facilitating communication and information exchange. It bridges data, not digital assets.
It enables smart contracts and irreversible digital agreements directly on Bitcoin without intermediaries.
Think of it as a transmission layer that enhances Bitcoin’s utility while keeping it secure on the main network.
Zero-Knowledge Proofs (ZKPs)
BeL2 leverages ZKPs to transmit proofs across chains. These proofs verify Bitcoin transactions within a Solidity-based smart contract.
ZKPs allow collateralized Bitcoin to participate in smart contracts without leaving the main network.
Arbitrator Nodes and Decentralization
BeL2 introduces Arbitrator Nodes. These nodes oversee dispute resolution, time-based execution, and loan management.
Upgraded zkBTC nodes can become arbitrators, earning BTC fees while maintaining decentralization.
Challengers can submit proof of arbiter misconduct, ensuring fairness and preventing collusion.
Possible usage of BeL2 as a proof tool
BeL2’s versatility goes beyond EVM-compatible use cases—it can bridge information across various domains.
zK Email Integration
BeL2’s zero-knowledge proofs (ZKPs) can leverage email communication from banks and fintech companies as verifiable proofs that can be inputted to our smart contracts.
Imagine a scenario where you want to prove the authenticity of an email from the bank about a confirmed ACH transaction. BeL2 can generate a ZKP that confirms the existence of the email without exposing sensitive information.
This would be useful for fiat based loans.
Proving API Calls and Responses
BeL2’s proof tool capabilities extend beyond financial transactions.
Suppose you’re interacting with an external API (e.g., a weather service, stock market data provider, or payment gateway). BeL2 can help prove the correctness of API calls and their responses.
By creating ZKPs, you can verify that an API call was made correctly and that the response matches the expected data.
This ensures trust in data feeds, prevents manipulation, and enhances the reliability of decentralized applications.