Arbitrum One, a Layer 2 network on Ethereum (ETH), is now integrating with BitcoinOS (BOS) to operate as a hybrid rollup that combines the security of Bitcoin (BTC) and the scalability of Ethereum.
By using BOS, the network gains trustless bridging and guaranteed Bitcoin finality through the BOS Grail bridge.
The developers believe that this integration reduces counterparty risk compared to existing Bitcoin interoperability solutions. The BOS framework uses zero-knowledge proofs (ZK) to allow Bitcoin transactions to interact with other ecosystems.
This integration is expected to give Bitcoin holders broader access to decentralized finance (DeFi) applications and smart contracts, capabilities that have historically been limited on the Bitcoin network.
Currently, Arbitrum hosts 8,333 BTC worth of Wrapped Bitcoin (WBTC), highlighting the demand for Bitcoin exposure in its ecosystem. The BOS Grail bridge addresses centralization concerns associated with WBTC by offering a trustless alternative to bridging assets.
The partnership seeks to provide faster asset withdrawals from Arbitrum to Bitcoin. BOS Grail vaults remove the seven-day waiting period common among optimistic rollups, allowing users to move funds with near-instant finality.
The integration with Arbitrum marks a step towards greater interoperability between Bitcoin and Ethereum-based networks, potentially expanding Bitcoin's role in the broader blockchain ecosystem.
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