GOAT Network: A New Solution for Bitcoin Layer 2

As the Bitcoin ecosystem continues to evolve, Layer 2 solutions built on BTC have become an important trend in the Web3 space for 2023-2024. Data shows that in Q2 2024, BTC L2 projects raised funds totaling $94.6 million, reflecting strong expectations within the industry for this area.

Currently, there are many BTC Layer2 solutions, but there has yet to be a project that stands out in both technology and ecosystem. In this highly competitive field, GOAT Network demonstrates innovation and potential, being the first BTC Layer2 project to adopt a decentralized sequencer and share network ownership. Its goal is to become a universal L2 solution applicable to various L1s.

GOAT Network expands Bitcoin functionality by implementing Bitcoin Rollup, with network security derived from the underlying Bitcoin blockchain. It introduces the optimistic challenge protocol GOAT-OCP and utilizes BitVM2 to ensure security, while employing ZKM interleaved Rollup as a universal settlement layer, enhancing transaction inclusivity and finality. A decentralized sequencer further protects network stability and asset security.

The GOAT Network plans to launch its mainnet in Q3 or Q4 of this year, with the testnet coming soon. The official will introduce the GOAT Club points program, providing long-term value and fair sustainable rewards for Bitcoin holders of different sizes.

The project focuses on addressing the three major challenges faced by L2:

1. Decentralized Sorter: GOAT will adopt a decentralized sorter from the launch of the mainnet, with an initial 7 sorter nodes. Currently, 5 founding sequencer nodes have been confirmed, including well-known institutions such as Amber Group and Hashkey Cloud. These nodes have committed to providing over 5,000 BTC in liquidity, with a target of reaching 8,000-10,000 BTC at launch.

2. Security: On the first layer of Bitcoin, GOAT applies an enhanced version of Bitcoin's time lock and one-time signature technology. In Layer 2, it adopts the zero-knowledge virtual machine zkVM developed by ZKM, ensuring that the system meets the native security standards of Bitcoin's base layer.

3. Sustainable Revenue Model: The decentralized sequencer can earn Gas fees in the form of BTC and mining rewards in the form of GOAT tokens by producing blocks, providing security, and being active around the clock. This provides opportunities for various participants to obtain sustainable revenue.

The vision of GOAT Network is to become a universal L2 for all L1s. It plans to connect networks such as Ethereum, TON, and Cosmos in the future after integrating the Bitcoin ecosystem, aiming to achieve seamless connectivity between any L1 and L2, addressing the issues of blockchain interoperability and liquidity fragmentation.

The project team is composed of industry veterans. The technical team leader, Professor Stephen Duan, previously founded Baidu Blockchain and Eigen Network. The head of economics, Redouane Elkamhi, is a finance professor at the Rotman School of Management at the University of Toronto, and has designed a sustainable profit mechanism for GOAT. The Chief Innovation Officer, Dr. Eric Wang, has designed a sustainable BTC profit model suitable for various participants.

GOAT Network is building an organic ecosystem. Multiple key DeFi applications will be launched simultaneously with the mainnet, including a DEX, lending, perpetual contract trading platform, BRC-20, and a zero-fee trading platform for other Bitcoin native assets.

To encourage early participation, GOAT has launched the GOAT Club points program, which includes three types of points:

• Community Points ( CP ): Hold 0.001 BTC to receive long-term returns and points.
• Builder Points ( BP ): Obtained based on TVL or gas consumption from smart contracts
• Node points ( SP ): Node operators earn points based on the blocks produced.

The innovative solutions and comprehensive ecological layout of the GOAT Network are expected to bring new development opportunities to the Bitcoin Layer 2 field, creating more application scenarios and potential returns for BTC holders.