- Arbitrum will fuel the Bitcoin DeFi push by integrating the BitcoinOS Grail bridge.
- The Ethereum L2 plots to exploit BTC security and Ethereum’s rich DeFi ecosystem.
Arbitrum (ARB), a layer 2 blockchain built on Ethereum capabilities, has expanded its reach via a recent integration with BitcoinOS (BOS). Leveraging this partnership, Arbitrum will function as a hybrid rollup that leverages Bitcoin’s security and Ethereum’s scalability.
The Arbitrum and BitcoinOS Integration
Arbitrum will use BitcoinOS to achieve trustless bridging and Bitcoin finality, guaranteed via the BOS Grail bridge. The development teams believe this decreases counterparty risk compared to other Bitcoin interoperability networks.
BitcoinOS is a smart contract operating system for Bitcoin that enables trustless and interoperable rollup bridges. BitcoinOS enables scalable, composable functionality while preserving Bitcoin’s core design. This ensures the protocol stays true to its roots as a sovereign, peer-to-peer digital currency.
BOS offers a modular infrastructure that enables L2 networks to operate securely without affecting Bitcoin’s base layer. Thus, the integration with Arbitrum is designed to give Bitcoin holders better access to Decentralized Financed (DeFi) applications. This is in addition to smart contracts that previously had limitations on the Bitcoin network.
Arbitrum currently holds 8,333 BTC worth of Wrapped Bitcoin (WBTC), showcasing its desire for Bitcoin exposure in its ecosystem. The BOS Grail bridge seeks to alleviate the centralization concerns associated with WBTC by providing a secure alternative for bridging assets.
Overall, Arbitrum’s integration with Bitcoin OS seeks to provide faster asset withdrawals from Arbitrum to Bitcoin. The BOS Grail vaults eliminate the seven-day waiting period typical of hopeful rollups, letting customers transfer cash with near-instant finality.
For Arbitrum, the integration marks a step toward better interoperability between Bitcoin and Ethereum-based networks. Eventually, this will broaden Bitcoin’s position in the larger blockchain ecosystem.
As Head of Partnerships at Arbitrum Foundation, Nina Rong remarked, “BitcoinOS’s integration with Arbitrum demonstrates how our technology can support innovative Bitcoin ecosystem expansion.”
Arbitrum Ecosystem Expansion
Arbitrum continues to make waves as one of Ethereum’s leading Layer 2 solutions. The solution is designed to extend Ethereum’s Decentralized Applications (dApps) without compromising security or decentralization.
Arbitrum provides the perfect solution for Ethereum users to alleviate network congestion. The solution ensures faster and cheaper interactions with Ethereum-based dApps, which is critical as the Ethereum network struggles with scalability.
As highlighted in our previous article, Arbitrum expanded its reach by integrating with French fintech firm Spiko. The firm launched its money market funds on Arbitrum, bringing over $150 million worth of assets to the Layer 2 network.
Furthermore, Spiko disclosed that its EU and US T-Bills Money Market Funds will be available on Arbitrum One. Spiko is one of the European leaders in the Real-World Asset (RWA) tokenization revolution.
Following its technological advances and expanding ecosystem, Arbitrum’s native token, ARB, is recognized as a top-performing asset. At press time, ARB is down by 6.84% and traded at $0.4492, with a market capitalization of $2.02 billion and a trading volume of $284.7 billion.
