Botanix Labs is improving Bitcoin by adding features similar to Ethereum. They’re building a Layer 2 solution for creating decentralized applications (dApps) on Bitcoin. This lets you use Bitcoin for lending, trading, and smart contracts, similar to Ethereum.
What is Botanix Labs
Here's how it works:
- Layer 2 Solution on Bitcoin: Botanix Labs creates a Layer 2 (L2) network on top of Bitcoin, enabling the development and use of decentralized applications (dApps).
- Ethereum Virtual Machine (EVM) Compatibility: Botanix integrates the EVM into their Layer 2 network, allowing developers to use the same tools and smart contracts they use on Ethereum, but with Bitcoin.
- Bridging Bitcoin: You can bridge your Bitcoin from the main Bitcoin network (Layer 1) to Botanix Layer 2. Plus, once you lock your Bitcoin in a multisignature wallet, the Botanix network will mint an equivalent amount of tokens on its Layer 2 network.
- Using Bitcoin on Botanix: On Botanix Layer 2, you can use your bitcoin for lending, trading, and deploying smart contracts. This opens up a wide range of decentralized finance (DeFi) applications previously not available on Bitcoin.
- Returning Bitcoin: When you want to move your Bitcoin back to the main Bitcoin network, simply bridge it back. The multisignature wallets release the Bitcoin, returning it to you on the main Bitcoin network.
- Orchestrator Nodes: Orchestrator nodes are crucial participants in the Botanix network. They run the protocol, manage the multisignature wallets, and validate transactions. To become an Orchestrator, participants must stake their own funds, ensuring they act honestly. If they act maliciously, they risk losing their stake.
- Spiderchain Security: The Spiderchain is an important component that secures your bridged Bitcoin on the Botanix Layer 2 network. It consists of multiple multisignature wallets that are managed by entities called Orchestrators. The Spiderchain regularly and randomly switches these Orchestrators to ensure no single party controls a large portion of the bridged Bitcoin.
- Security and Decentralization: Botanix uses Bitcoin’s Proof-of-Work (PoW) security while adding a fast and flexible Proof-of-Stake (PoS) system on Layer 2. This ensures the network remains secure and decentralized.
In summary, Botanix Labs improves Bitcoin by creating a Layer 2 network for decentralized applications. This combines Bitcoin’s security with Ethereum’s flexibility, allowing new ways to use bitcoin while maintaining high security.
Team of Botanix Labs
Alisia Painter
Co-Founder and COO
Alisia Painter is the Co-Founder and COO of Botanix Labs, with a background that includes leadership roles in business solutions at Fireblocks and corporate strategy at Adobe. She holds an MBA from Harvard Business School and a BA in Honors Business Administration from Ivey Business School at Western University.
Willem Schroé
Founder
Willem Schroé, Founder of Botanix Labs, holds an MBA from Harvard Business School and a Master's degree in Electrical and Electronics Engineering from KU Leuven. With a background in engineering and business planning, he has worked in various roles at ExxonMobil, including site supply chain supervision and business planning advisory.
Funding of Botanix Labs
$11,500,000
Total Funds Raised
$8,500,000
Seed Round
Investors included Polychain Capital, Placeholder Venture, ABCDE, Valor Equity Partners, UTXO Management, Edessa Capital, Curiosity Capital, Andrew Kang, Altcoin Sherpa, The Crypto Dog, Icebergy, Eric Wall, Dovey Wan, Hitesh Bhardwaj, Domo and FarmerJoe.
$3,000,000
Pre-Seed Round
Investors included Contribution Capital.
Botanix Labs review
Pros
Improved Functionality
Adds the ability to create and use decentralized applications (dApps) on Bitcoin, similar to Ethereum.
Increased Security
Uses Bitcoin’s Proof-of-Work (PoW) security for the base layer. The Spiderchain adds security with decentralized multisignature wallets.
Developer-Friendly
Integrates Ethereum Virtual Machine (EVM) compatibility into its network, allowing developers to use existing Ethereum tools and smart contract languages.
Decentralization
Maintains decentralization by using randomized Orchestrators for multisignature wallets, preventing any single entity from controlling the network.
DeFi Apps Integration with Bitcoin
Let's you use various decentralized finance (DeFi) applications like lending, trading, and using smart contracts with Bitcoin.
Cons
Market Adoption
As a new Layer 2 solution, it may take time for widespread adoption and for the community to fully trust and understand the system.
Potential Risks
While secure, the decentralized nature of multisignature wallets and the need for Orchestrator integrity can pose risks if not managed properly.
Staking Requirements
The requirement for Orchestrators to stake their own funds might limit the number of participants, affecting network decentralization and security.
Dependence on Orchestrators
The system relies on Orchestrators to manage wallets and validate transactions, which could be a bottleneck if too few participants join.