In the previous issue, Goat's Pizza NFT, at first, I thought it was the market's activity that restarted the NFT market, and it was precisely because of this that I realized GOAT is not simple!

It is well known that Bitcoin Layer 2 (L2) aims to expand Bitcoin's transaction throughput and functionality while preserving its decentralization, security, and trustless characteristics, yet the definition of native layer 2 standards is quite vague; it is precisely this that GOAT aims to clarify for me, what is native layer 2!

GOAT Network is a Bitcoin Layer 2 project focused on BTCFi (Bitcoin Finance), attempting to solve the issues of native security and sustainable yield through zero-knowledge proofs (zkMIPS), improved BitVM2 technology, and decentralized Sequencer.

1. Core standards for Bitcoin native layer 2 and the drawbacks of sidechains.

1. Essential conditions for Bitcoin native layer 2

Bitcoin native layer 2 must meet the following five conditions to ensure its decentralization, security, and trustless characteristics:

  • Frequent anchoring to the Bitcoin mainnet: L2 state should be regularly (ideally every block or every few hours) submitted to the Bitcoin mainnet, including validity proofs (such as zero-knowledge proofs) rather than just the Merkle root or signatures, to ensure the safety of user assets.

  • Mainnet dispute resolution: Users can directly challenge fraudulent behavior on the Bitcoin mainnet, with rulings enforced by Bitcoin miners, eliminating the need for off-chain intermediaries or multi-signatures.

  • Permissionless forced exit: Users can unilaterally exit L2 at any time without a custodian or approval, ensuring asset autonomy.

  • Trust-minimized bridging: Bridging mechanism based on BitVM2 and zkMIPS, with a non-custodial design and proof-based execution. Superior to traditional sidechains (such as Liquid's multi-signature bridge).

  • Continuous linearity and robustness: Existing liquidity-staking tokens (LST) provide liquidity advantages, but yield often relies on platform or third-party token incentives, lacking native $BTC support.

2. Limitations of sidechains

Traditional sidechains (such as Stacks, RSK, Liquid Network) have drawbacks in the following areas:

· Trust dependency: Sidechains typically rely on multi-signatures or federated governance (such as Liquid's multi-signature mechanism), introducing centralization risks.

· Security compromises: Sidechain assets (such as sBTC, RBTC) are anchored to native $BTC relying on third-party trust, exposing risks of theft or freezing.

· Exit restrictions: Users usually need to go through custodians or approval processes to exit sidechains, lacking autonomy.

Intermittent operation risks: Centralized nodes or governance structures of sidechains may lead to single points of failure, making it difficult to respond to censorship or attacks.

These drawbacks prevent sidechains from fully meeting the standards of Bitcoin native layer 2. GOAT Network addresses these issues through zkMIPS, BitVM2, and decentralized Sequencer, with the following analysis of its technical architecture.

Two, analysis of GOAT Network's technology and economic model

1. Frequent anchoring to the Bitcoin mainnet

GOAT Network is based on improved BitVM2 technology, building a zero-knowledge virtual machine with zkMIPS, supporting state submissions and validity proofs. Its Alpha mainnet launched on April 14, 2025, and the BitVM2 testnet launched on May 15, 2025, with withdrawal periods reduced from 14 days to under 24 hours. It has clear advantages over traditional sidechains.

2. Mainnet dispute resolution

GOAT Network's decentralized Sequencer is closer to trust minimization

3. Permissionless forced exit

GOAT Network can exit the system without third-party permission. Compared to Stacks (which relies on centralized nodes to coordinate exits), GOAT Network's decentralized architecture is more advantageous.

4. Trust-minimized bridging

The bridging mechanism is based on BitVM2 and zkMIPS, with a non-custodial design and proof-based execution. It is superior to traditional sidechains (such as Liquid's multi-signature bridge). Compared to Babylon's LST solution (which relies on platform token incentives), GOAT Network's native $BTC yield model reduces reliance on external trust.

5. Continuous linearity and robustness

Decentralized Sequencer architecture allows nodes to participate openly, distributing gas fees, mining rewards, and MEV to contributors, enhancing the network's censorship resistance and self-recovery capabilities.

Three, GOAT Network's BTCFi innovation and market positioning

· Technological innovation: Utilizing zkMIPS for computational efficiency; improving BitVM2 to enhance anchoring efficiency; decentralized Sequencer enhances network resilience.

· Economic model: Optimizing yield distribution through Universal Operator and Multi-Round Random Challenger Model, supporting $BTC and DOGE staking, expanding ecological inclusiveness.

· Vertical integration: Building its own DeFi and NFT ecosystem (such as Bitcoin Pizza NFT) to reduce reliance on third-party needs, superior to sidechains like Stacks that depend on external ecosystems.

In terms of market positioning, GOAT Network focuses on generating native $BTC yields, filling the gap for Bitcoin in the DeFi space. Its innovative mechanism supporting DOGE staking attracts the meme asset community.

Four, risks and challenges

1. Technical risk: The complexity of developing zkMIPS and decentralized Sequencer may lead to trade-offs between performance and security.

2. Lack of transparency

3. Market risk: BTCFi is in the early stages, requiring increased market education efforts to attract users.

4. Competitive risk: Needs to compete with projects like Stacks and RSK to establish differentiated advantages, particularly in ecological expansion and developer support.

GOAT Network demonstrates the potential of Bitcoin native layer 2 through zkMIPS, BitVM2, and decentralized Sequencer in its technical architecture. Its decentralized design and native $BTC yield model surpass traditional sidechains.

GOAT Network can solidify its position in the following ways:

· Increase the frequency of state anchoring, approaching the ideal standard of 'every block'.

· Public dispute resolution and forced exit mechanism implementation to enhance user trust.

· Expanding DeFi and NFT ecosystems, attracting more liquidity providers and developers.

· Collaborate with other Bitcoin L2 or Web3 projects to enhance ecological compatibility.

In summary, GOAT Network has the potential to be a systematic disruptor in the BTCFi space, with the empowerment of NFTs just the beginning, and it will undoubtedly have to be a long-term focus.