Bitlayer Series (Twenty-Four): Discussion on Optimization Strategies for Rollup

Bitlayer Rollup is key to enhancing Bitcoin's efficiency, processing transactions in batches on L2 and then submitting them to L1. The first optimization strategy is a modular execution layer that allows contracts to run faster and supports sub-second soft finality. This is more advanced than early rollups because Bitlayer integrates fast PoS consensus, reducing latency.

Second, data availability optimization. Bitlayer does not solely rely on Bitcoin for data storage but uses a hybrid approach to ensure L2 blocks are transparent and traceable. The operator rotation mechanism prevents centralization, requiring BTC collateral to be locked for each submission, incentivizing honest behavior.

Third, cross-chain integration. Rollup seamlessly bridges with BitVM, making asset transfers efficient. Developers can also use SNARG proofs to compress data, reducing L1 costs. In practice, this lowers transaction fees to just a few cents, making high-frequency DeFi such as flash loans feasible.

Optimizations also include user experience: dual-layer finality, where users can choose between quick soft confirmation or Bitcoin's hard security. In the future, Bitlayer plans to add zero-knowledge rollups to further enhance privacy. Overall, these strategies shift Bitcoin from low throughput to high performance, challenging Ethereum's dominance and promoting the democratization of DeFi.

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