Botanix Labs has unveiled the Aragog test network for its EVM-compatible Layer 2 solution, Spiderchain, designed for the ecosystem of the first cryptocurrency.
A decentralized Bitcoin L2, fully EVM equivalent, purpose-built for Bitcoin-native DeFi.
Botanix’s final testnet is now live:
— Botanix Labs ? (@BotanixLabs) December 4, 2024
According to the statement, Aragog will be the final step before the mainnet launch in 2025.
The previous testnet, which remained unnamed, operated since November 2023. During this period, it registered 400,000 unique addresses, conducted nearly 2 million transactions, and launched 20,000 token contracts.
Developers incorporated several innovations in Aragog, such as the FROST (Flexible Round-Optimized Schnorr Threshold) cryptographic signature. This is a type of multisig technology that combines shares from multiple key holders into a single address.
“The design optimizes communication between participants to reduce time, save bandwidth, and decrease the likelihood of errors,” the team explained.
In September 2023, the Spiderchain concept caught the attention of Casa co-founder and CTO Jameson Lopp. The expert generally praised Botanix’s Bitcoin scaling solution, which could open up DeFi space for the first cryptocurrency. However, he noted several potential risks, including a tendency towards centralization inherent in Proof-of-Stake blockchains.
According to developers, Aragog operates on globally distributed full nodes, whereas the first testnet was launched using a single Botanix node.
The final test network hosts several DeFi applications, including:
- Bitcoin-based stablecoin Palladium;
- DEX and automated market maker Bitzy;
- Lending market Spindle;
- Liquid staking protocol Rover;
- Perpetual options exchange BitPerp.
Analysts at Galaxy Digital have forecasted a liquidity influx of over $47 billion into Bitcoin L2 solutions by 2030.