Bitcoin’s new second layer promises profits for miners and programmability

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Marathon Digital Holdings, one of the most important companies in the Bitcoin mining industry, publicly presented Anduro, its new development. This is a new layer two network (second layer or L2, for the term layer 2 in English) that allows the creation of multiple side chains in Bitcoin and pursues the goal of “accelerating the development and adoption” of the network.

In its releaseMarathon explains that “although Bitcoin’s decentralization, security, and popularity are attractive to developers, the network’s current functionality can present challenges for those looking to scale their applications.”

Anduro proposes to solve this difficulty, they explain, while continuing to take advantage of the security of Bitcoin, based on its proof of work algorithm (Proof of Work or “mining”) and with mining fused with financial incentives for miners. In other words, Bitcoin miners could include Anduro transactions in their blocks and earn rewards in bitcoin (BTC).

The L2 launched by Marathon proposes to facilitate the creation of multiple sidechains. Sidechains have their own rules and features, but they are connected to the main chain (Bitcoin) and can exchange assets with it securely.

In this way, they allow the creation of innovations and specific use cases without compromising the security and stability of the main chain. The main benefit for users is to have more functionalities through applications based on Bitcoin, while they could carry out faster and cheaper transactions, says the website of the project.

For example, in the Anduro context, Marathon is developing the Coordinate and Alys sidechains. “Coordinate offers a profitable UTXO stack for the Ordinals community, while Alys is an Ethereum-compatible chain intended for the tokenization of institutional assets,” the statement explains. Both developments are open source, so they are available for contributions from other developers.

Anduro sidechains use a process called merge-mining. Participating miners, like Marathon, could have the ability to earn bitcoin income from transactions that occur on Anduro sidechains, while continuing to mine Bitcoin on the main layer uninterrupted.

Marathon, about the launch of Anduro.

More details about Anduro, a new second layer in Bitcoin

One of the main features of Anduro is that it is a programmable layer. This means that it allows the creation of smart contractsa quality that is often highlighted in Ethereum and that, although it is also possible in Bitcoin, certain technical complexities have slowed its development and mass adoption on this network.

“Programmability” in this context implies that Developers can write code that will run automatically and in a decentralized mannerin response to certain events or predefined conditions.

Finally, another notable aspect of Anduro is its focus on the community. The network was incubated by Marathon and the company will lead its development initially, but they express that it was intended to “be led and driven by the community.” This will be done through a decentralized governance system, in which governance token holders vote to reach consensus on network development and possible changes in the protocol.

Fred Thiel, president and CEO of Marathon, commented that Anduro could contribute to Marathon’s technological tools by introducing a potential new source of fee income and helping the growth of Bitcoin adoption. “We believe Anduro is one of those ideas that brings value to Bitcoin holders and application developers, while reinforcing the long-term sustainability of Bitcoin Proof of Work,” he concluded.

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