Original author:Haotian（X：@tmel0211）
Editors note: With the rise of the BTC Layer 2 ecosystem and the emergence of many cutting-edge chains similar to UTXO models, chain abstraction may be the next potential explosive track. MerlinChain can absorb nearly 4 billion US dollars of TVL assets a month, and it is indispensable without the help of Particle Networks chain abstraction technology. crypto analystHaotian(X: @tme l0 211) From a technical perspective, Odaily explains how the chain abstraction technology helps MerlinChains TVL to be brilliant. Odaily summarizes it as follows:
MerlinChain can quickly and methodically absorb nearly 4 billion US dollars of TVL assets, which is directly related to the mature chain abstraction services such as BTC Connect, AA account abstraction, and Paymaster provided by Particle Network behind the scenes.
I said before that chain abstraction is the next focus area after modularization. Many people dont think so, but if I tell you,Without @ParticleNtwrk’s behind-the-scenes “chain abstraction” technical assistance, we would not have been able to witness the brilliance of the BTC layer 2 track MerlinChain’s TVL of nearly 4 billion US dollars a month.Why? Next, share my technical understanding:
Chain abstraction is another concept derived from account abstraction, with the purpose of improving users seamless interaction experience between different blockchains. When EVM-Compatible dominated the market, the AA account abstraction had basically met the needs of users. However, with the rise of the BTC layer 2 ecosystem and the emergence of many cutting-edge UTXO model chains,A chain abstraction technology that can span EVM chains and non-EVM chains is crucial.
Take MerlinChain as an example. It is an emerging BTC layer 2 chain of EVM-Compatible. It aims to expand the application ecosystem for native assets on BTC layer 1 such as BTC and BRC 20, ARC 20, BTC 420, etc. through the high scalability performance of layer 2, allowing These BTC derivative assets can get rid of the performance limitations of the main network chain and release greater liquidity and market potential.
Therefore, the main technical threshold of MerlinChain is how to cross-chain BTC native assets and other derivative assets popularized by Inscription to the Layer 2 chain and quickly build an application protocol ecosystem to give Inscription assets a huge liquidity market , and then revitalize the long-dormant inscription ecology.
To achieve this, it is necessary to seamlessly connect the BTC UTXO chain and the EVM-Compatible chain, involving safe cross-chain BTC assets, seamless ledger migration of derivative assets such as BRC 20, and rapid construction of a second-layer DeFi application environment for BTC and other series of assets, etc. and other technical issues.
If the normal development process is followed, even if the second-layer chain can be rapidly developed based on the existing mature EVM solution, how to achieve interoperability between the BTC native chain environment and the EVM environment is a big problem.In exchange for interoperability and interoperability between other chains, there can be a two-way rush to adapt to each other. However, the BTC chain is very special and can only be compatible and adapted by other chains, even if it has much higher scalability. EVM chains are no exception.However, the EVM chain itself and the BTC chain are not the same species, and it is impossible to actively cater to the design of the BTC chain.
How to do it?Interoperable connectors can only be provided by an independent third-party chain abstraction platform,You might as well take Particles technical support for Merlin as an example to do some discussion and explanation. Let’s see how the BTC-Connect specially customized and developed by Particle Network works?
Most EVM-Compatible chains are only compatible with Metamask, while most BTC chain user assets are on wallets such as Unisat and Xverse.To use Unisat to connect to the EVM chain requires a layer of wallet adaptation abstract processing.
To put it simply, Unisat and Metamask have different public and private key encryption algorithms and parsing signature particularities. Particle needs to connect the communication and coordination work between the two parties:
1) When a user initiates a transaction on Unisat, Unist must first send a transaction request to the Partcile Chain through Particles SDK. The Particle Chain will first generate an EVM Smart Contract address corresponding to the Unisat address, and then the AA address will be in the EVM environment. Initiate a transaction and request MerlinChains response;
2) When users connect for the first time, they need to bridge some assets on the BTC chain to the AA address on the Particle chain.This address has the Paymaster payment function and can perform a series of subsequent interactive operations on its behalf, such as entrusted transactions, gas payment, multi-signature management, etc.;
3) After Particle completes a series of SDK interoperability basic connections, user transactions are sent to Particle Chain. Particle Chain will verify the execution and coordinate MerlinChain. When Merlin receives a new transaction request, it will directly verify the Bitcoin wallet through AA contract analysis. Sign to complete the transaction.
After completing the adaptation process of the wallet abstraction, Particle also plays a certain role in MerlinChains asset migration and processing. For example, when users transfer assets to MerlinChain through Unisat, they will be stored in the custody address provided by the Cobo platform, and Particle will The response should be triggered immediately to generate the corresponding Wrap asset and generate an AA address that can perform multi-signature and delegated transactions.Particle is equivalent to the only channel for BTC native assets to enter MerlinChain.this means:
1) ParticleChain will precipitate the Wrap version of most of the native assets migrated from the BTC chain. It can be considered that most of MerlinChain’s nearly 4 billion US dollars of TVL assets will be within the jurisdiction of Particle Chain. Particle must connect the casting of Wrap assets. , destruction, transfer, etc. to help MerlinChain have clear asset circulation management capabilities;
2) For ETH, USDT, USDC and other assets flowing in from other EVM-Compatible environments, Particle will also perform corresponding asset circulation accounting management based on its AA account abstraction characteristics to support subsequent Swap, Staking, and Restaking and other related DeFi protocol applications are generated;
3) The off-chain indexer system corresponding to Inscription assets is also crucial. As the core tool for managing on-chain transaction data, when Inscription assets flow into the layer 2 EVM environment, the indexer needs to be accurately recorded, tracked, and effectively managed to manage such assets. circulation, especially when reconciling ledger differences between different indexes.
In general,MerlinChain can quickly and methodically absorb nearly 4 billion US dollars of TVL assets, which is directly related to the mature chain abstraction services such as BTC Connect, AA account abstraction, and Paymaster provided by Particle Network behind the scenes.
above
“Chain Abstraction” is a potentially explosive track, and its value and significance are self-evident.Some people say, isn’t this a solution for inter-chain interoperability? Thats right, but chain abstraction communication between chains of different species is not as simple as imagined.
A set of ERC 4337 AA account abstraction standards can basically connect the entire EVM chain. Emerging chains such as Sui and Aptos can also complete asset delivery through mapping relationships such as contracts and agency contracts. The most troublesome and challenging thing is how to deal with and The abstract relationship of the BTC chain.
The development of BTC layer 2 requires the continued support of “chain abstraction” capabilities.The abstraction of wallet incompatibility interaction, the abstraction of indexer collaboration differences, the abstraction of off-chain custody environment and on-chain asset transparency, the abstraction of management between various alienated inscription assets on the chain, etc.
The reason behind the silence of Inscription Track is mostly due to the fact that many technical issues have not yet been resolved.When all kinds of micro-innovation assets have flourished, it is now necessary to use abstract methods to unify them into a unified layer 2 chain. You can imagine how difficult the journey is.
Note: In the final analysis, BTClayer 2 is to solve the liquidity problem of BTC series derivative assets. We look forward to @MerlinLayer 2 @BSquaredNetwork @ParticleNtwrk and other builders working here to bring continuous breakthroughs.
