TeleportDAO: The Key to Unleashing Bitcoin Layer 2 Interoperability

The Bitcoin blockchain is no longer solely a platform for BTC payments. With the introduction of Ordinals (Bitcoin NFTs), developers see opportunities to use this highly secure blockchain for new purposes. Ordinals were just the beginning, leading to ideas like creating fungible tokens on Bitcoin (e.g. BRC-20s, RUNEs) and running smart contracts on it. 

The potential for innovative protocols on Bitcoin has driven up transaction fees, sparking a wave of new ideas. This has led to the development of Bitcoin layer 2 solutions, aiming to move these protocols to a separate layer and use Bitcoin blockchain solely for securing them. 

Numerous Bitcoin layer 2 projects are currently in development, each featuring a unique security model tailored to specific applications and addressing various trade-offs. These projects aim to attract Bitcoin assets and foster the development of consumer-oriented applications. 

A key question is how to securely move assets and data from Bitcoin to these layer 2 networks, as this connection is crucial for unlocking value in Bitcoin layer 2s. A bridge that moves data and messages, could be used to facilitate the movement of BTC, BRC-20s, and Ordinals to the layer 2 networks. Additionally, such a bridge could be instrumental in creating more advanced DeFi applications for Bitcoin, including lending platforms, derivatives markets, etc. 

TeleportDAO, the secure connection from Bitcoin to L2s 

TeleportDAO is a protocol enhancing Bitcoin's interoperability, connecting Bitcoin to Bitcoin layer 2s and EVM blockchains. This allows developers to build cross chain applications for Bitcoin on other chains and layers. It can be used for

TeleportDAO: The Key to Unleashing Bitcoin Layer 2 Interoperability 1 

primitive applications like token and NFT wrapping, as well as more complex ones like Bitcoin-backed stablecoins. 

For example, two dApps powered by the TeleportDAO bridge are TeleSwap and TeleOrdinal. TeleSwap is a decentralized protocol for bridging BTC and BRC-20s to EVM chains, allowing users to trade their Bitcoin assets with ERC20s. TeleOrdinal is the first cross-chain marketplace for Bitcoin NFTs, enabling users from EVM blockchains to purchase Ordinals with any ERC20 token in a trustless marketplace. 

How does TeleportDAO achieve Bitcoin grade security? 

Bitcoin is the most secure chain, so the bridge connecting it to other chains should meet high standards of security. TeleportDAO achieves this through light client verification, ensuring Bitcoin-grade security with minimal trust. 

Unlike many bridges that rely on a third party for cross-chain data verification, TeleportDAO relies on on-chain verification; meaning that it uses smart contracts on layer 2 or on the EVM blockchain to verify the correctness of the received data. By eliminating the validator layer, which is susceptible to vulnerabilities like private key leaks, TeleportDAO achieves the highest level of security in bridging. It verifies Bitcoin data submitted by a decentralized network of nodes against the Bitcoin protocol implemented on a smart contract. 

In the near future, numerous Bitcoin consumer apps will emerge, allowing users to utilize their Bitcoin assets for various purposes. TeleportDAO will serve as the solid backbone technology to build such applications.

This post is commissioned by TeleportDAO and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.