Blockchain developers unveiled a new platform on Thursday meant to catapult Bitcoin into the modern era of decentralized finance (DeFi)—an industry that the original crypto network has largely kept at arms-length.
The new platform, named BitcoinOS, is pitched as a “public good” that uses “sovryn rollups” to create a foundational layer for decentralized apps (dapps) on Bitcoin. Any developer can contribute to it, its founders say, and build new tools in whatever programming language they want.
“Sovryn rollups will use Bitcoin as a data availability (DA) layer as opposed to ZK rollups where the rollup is controlled by a smart contract on the parent chain,” explained Edan Yago, a core contributor to BitcoinOS. “Because Bitcoin does not have such smart contracts, ZK rollups are impossible on Bitcoin.”
Bitcoin’s main blockchain is known for being slow compared to other blockchains, especially during periods of high activity. Its limited programming language has long left it without truly decentralized transaction scaling solutions. Existing technologies like sidechains can enable faster transactions, but they require users to trust centralized, federated bridges and suffer from a lack of liquidity with other blockchains.
In contrast, BitcoinOS claims to offer scalability, programmability, interoperability, and a near trustless security model with minimal tradeoffs, making it an attractive scaling solution for developers. Its built-in fraud system also allows even a single honest participant to prevent fraudulent transactions, providing a high level of security.
The platform is built from modular parts, enabling developers to launch their own rollups and for all applications built on these rollups to be composable and interoperable with one another. This means that projects built on BitcoinOS can seamlessly share users and activity, promoting a more interconnected network of decentralized apps.
Sovryn, the DeFi project behind BitcoinOS, processed $2.2 billion in trades and loans and carries $46.82 million in total value locked (TVL), according to DeFi Llama. BitcoinOS is positioned as “stage 2” of Sovryn’s plan to expand Bitcoin’s utility beyond being a global reserve currency, with “stage 3” aiming to build a world on Bitcoin as a true alternative to today’s centralized economic, corporate, and state interests.
Following the announcement of BitcoinOS, Sovryn’s native currency SOV surged 60% to $1.37, according to CoinGecko. This signifies the significant positive market reaction to the potential of BitcoinOS in driving the growth and utility of Bitcoin within the DeFi space.
