Interpretation of Botanix: Decentralized BTC L2 for Network Asset Management (with Interactive Tutorial)
Through the dynamically changing multi-signature wallet Spiderchain, it provides high security and decentralized features for network assets.Author: Nan Zhi, Odaily Planet Daily
Yesterday, Botanix Labs announced that it has completed a total of $11.5 million in funding, with participation from Polychain Capital, Placeholder Capital, and others. The funding will be used to build the decentralized EVM-equivalent BTC L2 Botanix.
Spiderchain combines the usability of EVM with the security of Bitcoin. Since the testnet went live in November 2023, there have been over 200,000 active addresses. Odaily will analyze the unique mechanisms and interaction processes of Botanix in this article.
Botanix
According to the official definition, Botanix is a decentralized Turing-complete L2 EVM built on Bitcoin, consisting of two core components: the Ethereum Virtual Machine (EVM) and Spiderchain.
The EVM uses a PoS mechanism, aiming to leverage the usability and versatility provided by EVM while utilizing the PoW mechanism of the Bitcoin network to ensure security, with user stakes equivalent to the amount of Bitcoin staked in a multi-signature wallet.
Spiderchain is the core mechanism of Botanix. Spiderchain is a set of dynamic, continuously changing, decentralized multi-signature wallets that protect the security of Bitcoin assets on Botanix. Spiderchain pioneers the "decentralized multi-signature wallet," protected by a randomly selected subset of participants, achieving a highly decentralized protection mechanism. The official definition may be overly convoluted and difficult to understand, so we will clarify it in the following section.
Spiderchain
There is no official definition for BTC L2, one solution is to build an EVM network (i.e., a Layer 2 of the Bitcoin network), where users deposit assets into an official multi-signature wallet and then "map" them to the EVM network. Aside from cross-chain interactions between L1 and L2, subsequent user operations are only related to the EVM network, no longer consuming Bitcoin network resources. Transferring assets out of this type of L2 is equivalent to destroying assets in the EVM network, after which the multi-signature wallet releases assets to the user. At this point, the security of the assets in the multi-signature wallet is the user's primary concern. Previously, several major L2 assets were actually controlled by the official party, raising concerns about the risk of "rug pulls."
Spiderchain aims to solve the centralization problem of asset multi-signature wallets. The name Spiderchain comes from the concept of multi-signature wallets, where each "leg" of the spider represents a different participant. Each block will randomly select a group of participating nodes and a multi-signature wallet, managed by that group of participants.
Spiderchain refers to these nodes as Orchestrators. Every time a block is produced on the Bitcoin mainnet, a new multi-signature wallet is generated to manage the Bitcoin assets stored, with the selection of which nodes to manage handled by a VRF (Verifiable Random Function). Each group consists of about 100 nodes, and the randomness and continuous variability mitigate the risks of single points of failure and malicious attacks from superuser privileges of the project team.
Additionally, Spiderchain nodes feature permissionless joining, allowing anyone to invest assets to become an Orchestrator node, providing a sufficient number of nodes. According to official disclosures, it currently supports between 10,000 to 100,000 full nodes, thereby achieving decentralization.
Thus, returning to the official definition, "Spiderchain is a set of dynamic, continuously changing, decentralized multi-signature wallets," it becomes easier to understand.
Beyond the aforementioned features, the operational logic of Spiderchain is similar to conventional nodes, allowing users to freely join node creation. However, if malicious operations or other undesirable behaviors occur, the staked assets of the node will be penalized (slashed). Security follows the PoS security model; as long as the number of malicious nodes is less than that of other Orchestrator nodes, mathematical security is guaranteed.
Funding Details
Rootdata data shows that Botanix has completed two rounds of funding:
The seed round was completed on May 7, 2024, raising $8.5 million, with participation from Polychain Capital, Placeholder Capital, Valor Equity Partners, and a series of angel investors including Andrew Kang, Fiskantes, Dan Held, The Crypto Dog, and Domo.
The pre-seed round was completed in June 2023, raising $3 million, with participation from UTXO Management, Edessa Capital, XBTO Humla Ventures, and others.
Testnet Interaction
- Enter the official Faucet and click to add the test network to your wallet.
- Click to claim network test tokens. If this site cannot be used to claim, you can go to other sites to claim:
https://dripdripdrip.xyz/botanix-testnet
- Currently, Botanix has launched two applications: AvocadoSwap and Bitzy, the latter requires an Access Code to use. Users can follow the official X account and message privately to obtain it.
However, it is worth noting that Botanix has not promised any rights for testnet participants, and whether it is worth engaging in bulk interactions is up to the readers to decide.
Conclusion
The Spiderchain solution of Botanix is an important step towards decentralization in the EVM direction of BTC L2, and the amount of funding is also among the higher tiers in various BTC L2s. According to official disclosures, the mainnet launch is imminent, and readers can keep a long-term watch.
