Bitcoin Proof of Stake? Discuss Spiderchains by Botanix

In a recent interview with Bitcoin Magazine, Shinobi sat down with Botanix Labs’ Willem Schroé to discuss the progress and vision of Spiderchains, an innovative scaling solution that will soon be released to the public. Despite the excitement surrounding other layer solutions such as BitVM and Rollup, the Botanix team has continued to lay the foundation for a decentralized network capable of supporting 10,000 nodes, leveraging a unique combination of multi-signature and proof-of-stake (PoS). mechanism.

Design Overview

Schroé describes SpiderChain as a decentralized multisig network that is conceptually similar to the Lightning Network but uses a different architecture. “We started with this multisig idea, but if you think bigger… you would create one multisig, a larger multisig, and then a Frost multisig with 100 random members.”

A multi-signature, decentralized network forms the backbone of Spiderchain, ensuring the security of assets deposited on the platform. Spiderchain uses the Ethereum Virtual Machine (EVM) as its execution environment and secures it using a novel PoS mechanism, enhancing the security and decentralization of the network. This design aims to solve problems commonly associated with other layer 2 solutions, especially those on Ethereum, which often suffer from centralization and security vulnerabilities. Spiderchain’s architecture prioritizes decentralization and security through the unique integration of multi-signature and PoS mechanisms.

Combination of Proof of Stake and Proof of Work

Building a PoS consensus layer on top of Bitcoin’s proof-of-work (PoW) system solves many of the problems inherent in pure PoS systems. Willem, once a “proof-of-work maximalist,” explained the benefits of this hybrid approach. The combination of PoS and PoW also solves security issues related to randomization and finality. This integration allows Spiderchain to inherit Bitcoin’s finality, further strengthening its security model.

By using Bitcoin’s block hashes for randomization, Spiderchain ensures a safe and reliable way to select validators, improving the overall stability and security of the network. Schroé noted that this unique approach solves many of the centralization and security issues that typically plague pure PoS systems.

Security and forward security

One of Spiderchain’s standout features is forward secrecy, a concept borrowed from cryptography. Forward secrecy means that even if a key is compromised, it cannot be used to decrypt previous transactions, thus improving the overall security framework of the network. This feature ensures that your past transaction data remains safe even if your keys are exposed in the future. The protocol achieves this by rotating keys frequently and using a unique key for each transaction to prevent a single point of failure from compromising the security of the entire chain.

“Given the roadmap of the various rollups, we will need to introduce a time delay at some point when upgradeability is likely. But even if there is a time lag, let’s say there is a time lag of two weeks or 30 days. Even after 30 days, the attacker still knows exactly how to steal your funds. When it comes to forward security, that’s the big unknown.”

This approach not only protects past transactions, but also strengthens confidence in the network’s resilience to potential attacks.

Slashing and Capital Efficiency

Spiderchain also implements slashing rules to punish malicious stakers, making the network more secure. This powerful mechanism ensures that any malicious activity is dealt with quickly and effectively. Its design also provides capital efficiency and decentralized ownership. Unlike other layer 2 solutions that rely on a single smart contract with large funds, Spiderchain spreads risk across multiple multi-signatures. “We no longer have honeypots, we suddenly like decentralized ownership. There is no single party that can own everything,” Schroé emphasized. This design is also a significant improvement over existing models by allowing for greater participation and security.

Progress and vision

Willem acknowledged the complexity of building on Bitcoin despite recent advances. He emphasized Botanix Labs’ commitment to the project and its focus on moving from a white paper concept to a fully functional product. “There’s a lot to build. It’s not easy to actually build it to go from white paper to a working product, so we put our heads down and built it,” he explained.

Looking ahead, Willem shared exciting news that Spiderchain’s federated sidechain is expected to launch soon. “We have implemented a larger Frost Multisig and built an initial federation. We will start with a federated sidechain and basically build from there.” he announced.

Botanix’s Spiderchain has been live on testnet since November and has already processed over one million transactions.