KEY TAKEAWAYS
- AltLayer and Babylon have launched BLITZ, a decentralized network to improve the finality of Arbitrum Orbit chains using Bitcoin staking.
- BLITZ addresses slow finality issues in rollups by leveraging BTC as economic collateral, enhancing transaction speed and security.
- The network employs a forkless rollup design with extractable one-time signatures to ensure integrity and incentivize finality providers.
- BLITZ reduces dependency on centralized sequencers, supporting fast and reliable transaction processing for latency-sensitive applications.
AltLayer, in collaboration with Babylon, has announced the launch of BLITZ, a decentralized network designed to enhance the finality of Arbitrum Orbit chains. This new network leverages Bitcoin (BTC) staking through Babylon to provide economic security, addressing the slow finality issues commonly associated with rollups. The announcement was made here.
BLITZ aims to improve transaction finality for Arbitrum Orbit chains, which are a type of optimistic rollup relying on Ethereum for settlement. Currently, it takes approximately 13 minutes for an Ethereum block to finalize, which can be a bottleneck for latency-sensitive applications such as games and social apps. By using BTC as economic collateral, BLITZ provides a faster finality solution, allowing L2 blocks with sufficient BTC-backed votes to be considered final from a crypto-economic perspective.
How BLITZ Works
The BLITZ network utilizes a forkless rollup design, where BTC holders can stake their BTC natively on the Bitcoin chain. This staking is used as economic collateral, and the network employs a special signature scheme called extractable one-time signatures (EOTS) to sign L2 blocks. If a sequencer attempts to sign conflicting L2 blocks, the underlying private key can be extracted, effectively slashing the staked BTC. This mechanism ensures that the finality providers (FPs) have a strong economic incentive to maintain the integrity of the network.
Each FP is unique to a specific Orbit chain, and BTC holders can delegate their BTC to these providers. The signed blocks are then sent to the Babylon chain for verification, ensuring they are valid and backed by BTC. A block with votes backed by more than two-thirds of the staked BTC is considered finalized.
Implications for Arbitrum Orbit Chains
BLITZ offers significant benefits for Arbitrum Orbit chains by providing a decentralized fast finality layer. This design reduces dependency on centralized sequencers and mitigates risks associated with liquidity fragmentation across rollups. By enhancing the speed and security of transaction finality, BLITZ supports the deployment of new Orbit chains, particularly those serving applications that require quick and reliable transaction processing.
BLITZ is now live and ready for use, inviting both Orbit chains interested in utilizing the network and operators wishing to participate as finality providers to engage with the project.
Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.