Introduction
Bitcoin stands as the most recognized cryptocurrency globally. Yet, for applications beyond simple payments—like smart contracts and decentralized finance (DeFi)—Ethereum has often taken the lead. This is largely due to its Ethereum Virtual Machine (EVM), which supports complex dApps and financial instruments.
The challenge is clear: extend Bitcoin’s functionality without compromising its security or decentralization. Botanix Labs is tackling this by constructing an EVM-compatible Layer 2 solution on Bitcoin. This allows users to engage with dApps using Bitcoin, much like on Ethereum.
This article explores Botanix Labs' core technology, recent developments, and future roadmap.
Core Technology and Key Innovations
Botanix Labs aims to bring full DeFi functionality to Bitcoin. Users will be able to trade, lend, borrow, and transact NFTs natively using Bitcoin—all without leaving the Bitcoin ecosystem.
The system uses Bitcoin as the base layer (Layer 1) and the Botanix EVM as Layer 2. Users can bridge their Bitcoin to conduct transactions at parity with dApps on the EVM. When Bitcoin is bridged to Botanix, it is held in a decentralized multi-signature wallet secured by a network of Orchestrator nodes.
These nodes validate protocols and provide liquidity. They are required to lock up funds as collateral and face penalties for malicious actions. After completing transactions, users can withdraw their Bitcoin back to the main chain seamlessly.
A central innovation is the Spiderchain—a series of interconnected multi-sig wallets linking all Orchestrator nodes. It allows assets to move smoothly between Bitcoin’s UTXO model and the EVM’s account-based model.
Each new Bitcoin block generates a new multi-sig wallet. This separation between the asset (Bitcoin) and the blockchain enhances security and prevents direct exposure of users’ funds on the EVM.
👉 Explore more about Layer 2 Bitcoin solutions
Testnet Launch and Progress
In November 2023, Botanix Labs launched its public testnet—the first decentralized EVM-equivalent Layer 2 on Bitcoin. This followed a year of dedicated research and development.
The testnet already hosts over 5,000 projects. Getting started is straightforward: users connect via MetaMask, request test Bitcoin from the Botanix Faucet, and can begin transacting immediately. Deploying a dApp or launching a token takes less than 30 minutes.
During the testnet announcement, Botanix also introduced an accelerator program to support 10 startups with resources and development aid ahead of the mainnet launch.
It’s worth noting that gas fees on the testnet can appear high due to low chain recognition. Users can manually adjust fees before signing transactions, though this may be a temporary friction point.
Future Potential and Competitive Landscape
2024 has seen growing interest in Bitcoin Layer 2 solutions. Several projects are exploring similar paths with varying technical approaches. Below are some notable players in the space:
- BEVM: A decentralized L2 using Taproot and proof-of-stake to enable cross-chain transactions. It also allows BTC to be used as gas.
- Conflux Network: A Layer 1 blockchain that announced its Bitcoin L2 in early 2024, with testnet and mainnet launches planned for the first half of the year.
- Bitfinity: An L2 built on Internet Computer Protocol’s consensus model. It raised $7 million in early 2024.
- BOB (Build on Bitcoin): A hybrid L2 focused on EVM compatibility for smart contracts. It has a live testnet and recently secured $10 million in funding.
Botanix Labs’ roadmap includes several phases. Initially, the team planned a federated EVM sidechain in late 2023. While delayed, the goal remains to integrate a staking mechanism with a verifiable random function (VRF) for Bitcoin.
The decentralized Spiderchain is slated for full launch by late 2024. By 2025, Botanix aims to enable permissionless staking and integrate with the Lightning Network.
Achieving these goals would significantly expand Bitcoin’s utility. Notably, Botanix is pursuing this vision with modest initial funding of $2.1 million raised in 2023.
Team and Strategic Partnerships
Botanix Labs was co-founded in 2022 by Willem Schroé, an engineer and Harvard MBA with a background in cryptography and macroeconomics. He developed the Spiderchain concept during his studies.
Armin Sabouri, a full-stack engineer, serves as CTO. The team is small—just 12 people—but highly focused, with deep experience in DeFi, blockchain, and Web3.
In 2024, Botanix announced key partnerships with Yala Labs and Palladium Labs. Yala Labs brings a native Bitcoin DeFi protocol that uses BTC as collateral. Palladium Labs is collaborating to launch a Bitcoin-native stablecoin on the Botanix EVM.
👉 Learn how to engage with decentralized ecosystems
Frequently Asked Questions
What is Botanix Labs?
Botanix Labs is developing a Layer 2 blockchain for Bitcoin that is compatible with the Ethereum Virtual Machine. It enables smart contracts and DeFi applications using Bitcoin as the native asset.
How does the Spiderchain work?
The Spiderchain is a network of multi-signature wallets that connect Orchestrator nodes. It allows Bitcoin to move between its native UTXO model and the account-based model used by the EVM, ensuring security and interoperability.
When will the Botanix mainnet launch?
The mainnet launch is pending successful testing of the Spiderchain and staking mechanisms. The team aims for a decentralized mainnet by the end of 2024 or early 2025.
Can I use MetaMask with Botanix?
Yes. The Botanix testnet is designed to work with MetaMask, allowing users to interact with dApps and perform transactions seamlessly.
What makes Botanix different from other Bitcoin L2s?
Botanix emphasizes decentralized security through its Spiderchain architecture and aims to fully integrate with Bitcoin’s ecosystem, including future compatibility with the Lightning Network.
Is Botanix Labs backed by investors?
Yes. The project raised $2.1 million in a single funding round in 2023 and has since formed strategic partnerships with industry players like Yala and Palladium Labs.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves high risk, including potential loss of capital.