GOAT Network: An Innovative Solution for BTC L2

The continuous development and improvement of the Bitcoin ecosystem have made the ecological construction around BTC an important topic in the Web3 field. In this context, Layer 2 built on BTC has become an indispensable and crucial part of BTC ecological construction. Data shows that BTC L2 related projects raised $94.6 million in the second quarter of 2024, a quarter-on-quarter increase of 174%, reflecting the industry's strong expectations for BTC Layer 2.

Currently, there are many BTC Layer2 solutions, but there hasn't yet been a project that excels both technically and ecologically. This field is still in a competitive phase, and any high-quality project has the potential to become a leader in the industry, attracting a large number of users and funds.

Among the many BTC Layer2 solutions, GOAT Network demonstrates strong innovation capabilities and development potential. It is the first BTC Layer2 project in the entire network to adopt a decentralized sorter and share network ownership. The ultimate goal of GOAT Network is to become a universal L2 solution applicable to all L1s.

GOAT Network Overview

GOAT Network expands the functionality of Bitcoin by implementing Bitcoin Rollup, with the security of the network directly derived from the underlying Bitcoin blockchain (L1). The network introduces the optimistic challenge protocol GOAT-OCP and utilizes BitVM2 to ensure security, while employing ZKM interleaved Rollup as a universal settlement layer, thereby enhancing transaction inclusivity and finality. GOAT Network also adopts a decentralized sequencer to protect network stability and ensure asset security.

The GOAT testnet is about to be launched, with the mainnet expected to go live in the third or fourth quarter of this year. The official GOAT Club points program will be introduced to provide long-term value and fair, sustainable rewards for Bitcoin holders of all sizes.

Addressing the Three Major Challenges Faced by L2

The GOAT Network has proposed effective solutions to the common challenges faced by L2 networks, such as decentralization, security, and sustainable returns.

1. Decentralized Sorter: GOAT will adopt a decentralized sequencer from the very beginning of its mainnet launch, with an initial setup of 7 sequencer nodes, each of which needs to stake BTC to secure the network. Currently, 5 founding sequencer nodes have been confirmed, and they have committed over 5,000 BTC in liquidity support, aiming to reach 8,000-10,000 BTC at launch. This will aid in the building and operation of on-chain DeFi applications while maximizing the stability and security of the network.

2. Security: On the first layer of Bitcoin, the GOAT Network applied an enhanced version of Bitcoin's time-locking and one-time signature technology to protect locked BTC assets. On Layer 2, the zero-knowledge virtual machine zkVM developed by ZKM is applied, giving the system a native security standard comparable to that of the Bitcoin base layer.

3. Sustainable Revenue Model: Decentralized sequencers can earn Gas fees in the form of BTC and mining rewards in the form of GOAT tokens by producing blocks, providing security, and maintaining 24/7 activity. This mechanism offers various participants the opportunity to gain sustainable returns and may also stimulate the emergence of a new BTC bond market.

Universal Layer2 Vision

The goal of the GOAT Network is to become a universal L2 for all L1s, showcasing its ambition and foresight. Bitcoin is the first ecosystem integrated by the GOAT Network, with plans to integrate Ethereum, TON, Cosmos, and others in the future. Its aim is to achieve seamless connections between any L1 and any L2, addressing the issues of blockchain interoperability and decentralized liquidity, while avoiding the security risks associated with traditional third-party bridges.

GOAT Network deploys its internal Entangled Rollup technology on various blockchains' L1 and L2, aggregating transaction states, message passing, and ZKP from a source chain and validating them on another chain. This approach enables message passing and asset transfer across multiple different networks without the need for a third-party bridge, ensuring smooth liquidity and asset security throughout the network.

Team Strength

The technical team of GOAT Network is led by Professor Stephen Duan, who previously founded Baidu Blockchain and Eigen Network. The team includes several senior professionals with extensive experience in the Web3 field.

The head of economics, Redouane Elkamhi, is a finance professor at the Rotman School of Management at the University of Toronto, specializing in strategic asset allocation, fund management, and DeFi. He designed a sustainable revenue mechanism for GOAT that covers nodes and BTC holders.

Dr. Eric Wang, Chief Innovation Officer, holds a Ph.D. in Computer Science from the University of Waterloo, with expertise in pricing financial derivatives, dynamic asset allocation, risk management, and DeFi. He designed the sustainable BTC yield model for GOAT, suitable for various participants.

The GOAT Network team has implemented a real-name system from the very beginning, with members being long-term participants and innovators in the Web3 field, which enhances the credibility of the project and future expectations.

Ecosystem and Participation Opportunities

The GOAT Network is building an organic ecosystem. A series of key DeFi programs will be launched simultaneously with the mainnet, including DEX, lending, Perp DEX, BRC-20, and a zero-fee trading platform for other Bitcoin native assets, even including a MEME center, etc.

The GOAT Club points program offers early participants the opportunity to qualify for future airdrops. Points are divided into three types:

1. Community Points (CP): Community members only need to hold 0.001BTC to obtain long-term benefits and points.

2. Builder Points (BP): Builders can earn additional rewards from user activities at the mainnet launch based on the TVL or gas consumption of their smart contracts, or by integrating the GOAT Club API with a custom points system.

3. Node Points (SP): Node operators earn points based on the blocks they produce, ensuring that contributions to network activity and security receive direct rewards.

The innovative approach and comprehensive ecosystem planning of GOAT Network have the potential to become a leading project for BTC Layer2, bringing more application scenarios and profit opportunities for BTC holders. With the mainnet about to launch, the development of GOAT Network is worth the industry's continuous attention.