BOB is launching a test version of its new system to bring DeFi to Bitcoin without using wrapped tokens.
- BOB combines Bitcoin security with Ethereum’s smart contracts.
- It uses BitVM to transfer BTC directly without wrapping it.
- Top crypto firms are backing BOB’s testnet launch.
BOB Testnet Begins Ahead of Full Launch
BOB, a new layer-2 network, has started its testnet. The main system is expected to launch fully later in 2025. This project wants to bring decentralized finance (DeFi) tools to Bitcoin. BOB makes this possible by using something called BitVM.
What is BitVM?
BitVM is a method that lets programmers use Bitcoin for advanced functions like smart contracts. It was created in late 2023 by Robin Linus. Unlike Ethereum, Bitcoin does not naturally support these features. BitVM fixes that by enabling a system similar to Ethereum rollups. These rollups package many transactions together and check them later to save money and time.
Native BTC, Not Wrapped Tokens
Many DeFi platforms use wrapped bitcoin to link BTC into other systems. BOB is different. It allows Bitcoin to be used directly, without converting it into a token on another blockchain. This means users keep control and security of real BTC. According to BOB, it’s similar to how ETH remains ETH on Ethereum rollups like Optimism and Arbitrum.
Strong Industry Support
BOB’s testnet already has support from big names. Node operators include P2P.org and Lombard, two well-known staking firms. Others include Solv Protocol, a DeFi platform, RockawayX, a crypto venture capital firm, and Amber Group, a digital asset manager. These companies will help run and test the network.
Looking Ahead
BOB’s goal is to become a leading DeFi hub using Bitcoin as fuel, not just storage. By combining Bitcoin’s strength with Ethereum’s flexibility, they believe this approach could bring new use cases to one of the oldest cryptocurrencies.
Source: coindesk.com
