Bitcoin developer Burak is build Brollups, a layer-2 solution to scale Bitcoin’s DeFi capabilities.
Brollups will be managed by designated “operators” acting as liquidity providers. Operators will also maintain the state of the system by regularly chaining Bitcoin transactions.
According to Burak, transactions performed on the Bitcoin Virtual Machine (BVM) do not require new tokens or groundbreaking hard forks. Burak explained that Brollups will leverage Bitcoin’s existing infrastructure.
Brollups, currently in the design phase, has received praise from the Bitcoin community for its strategic focus on native integration. The developer says Brollups will support most DeFi applications on Bitcoin when it launches.
Burak once exploited the Lightning Network
Hackers exploiting Lightning Network vulnerabilities in October 2022 shocked the Bitcoin community. He accomplished this with a unique 998/999 multi-signature Taproot transaction. Although Bitcoin protocol rules determine transactions as valid, a flaw was discovered in the way some Lightning Network nodes handle information.
As a result, Burak’s transaction caused a temporary loss of synchronization on the network, leading to an emergency update for node operators on the Lightning Network. The harmless transaction costs just $5 and no funds are stolen. Burak has announced exploit on X.
However, industry stakeholders agree that this issue may be an unintended consequence of the recent Taproot upgrade. Importantly, the incident highlights the need for continuous testing and maintenance of robust systems like the Lightning Network.
Therefore, Burak came up with a solution – Brollups, which he said could integrate seamlessly with the existing Bitcoin network.
Burak discusses Brollups in detail
According to Bitcoin hackers, one of the most inevitable characteristics of rollup solutions (ZK and Optimism) is the minimum trust requirement.
“At least one of the system participants must be honest to maintain security and reliability, and prevent system exploitation by malicious actors,” Burak explains. He added that these principles also apply to Brollups.
Bitcoin hackers claim Brollups will keep transactions efficient and clean. He explained that transactions, called “entries,” can interact with existing smart contracts or create new ones. According to him, entries are stored using a special encryption structure, which packs data bit by bit tightly together.
“The payload is divided into 520-byte blocks and stored directly in the witness.”
According to the Bitcoin hacker, Brollups combines signatures from multiple entries into a single signature, which is used to verify the validity of a series of transactions at once. This will help improve processing speed, while also reducing data footprint.
Burak concluded that the “entries signing session” takes place in collaboration with the Brollups operator, which aggregates specific pieces of data to ensure accurate verification of entries before they are added to the system.
