In this post:
- Mintlayer launches its Layer2 chain to power Bitcoin decentralized applications and Real World Assets (RWA).
- Mintlayer revealed its commitment to security through its UTXO model, Rust development, and non-Turing complete smart contracts, all of which aim to reduce risks and enhance reliability.
- The firm announced that all node operators must upgrade to the latest version to ensure they can take full advantage of its new features.
Mintlayer announced on December 16 the introduction of Mintlayer—Layer2, which will power Bitcoin decentralized applications (DApps) and Real-World Assets (RWA). The platform also aims to maximize interoperability with Bitcoin through Atomic Swaps.
The firm revealed new features of the Layer 2 sidechain, such as tokenization on Mintlayer and improved scalability, privacy, and security. The company aims to meet its goals by taking advantage of its UTXO model, Rust development, and non-Turing approach.
Mintlayer optimizes tokenization and Atomic Swaps
Mintlayer is a Proof-of-Stake (PoS) Layer-2 protocol designed to address Bitcoin’s scalability issues and improve functionality by enhancing decentralized finance (DeFi) applications and tokenization on the Bitcoin network. Mintlayer’s L2 functionality aims to enable users to benefit from off-chain transaction efficiency using BTC, ML, or MLS-01 tokens.
The protocol revealed its tokenization feature for both MLS-01 and MLS-03. According to Mintlayer, MLS-01 will cover fungible tokens, whereas MLS-03 will cover non-fungible tokens (NFTs). For MLS-01, Mintlayer will grant issuers the option to manage supply and even freeze tokens if needed without the need for coding. The firm disclosed that MLS-01 answers ERC-20 because it streamlines token creation with the UTXO structure and has no complex contracts. The company hopes MLS-01 will allow customization of tickers, supply, and metadata to ensure wallet compatibility for efficient tokenization on Mintlayer.
Mintlayer also declared on X that the MLS-03 tokenization standard will be its solution for NFTs. The firm said this is because MLS-03 is designed for unique assets with attributes like creator info, descriptions, and media files. The platform believes that MLS-03 is perfect for digital art, collectibles, and more.
The layer 2 sidechain hopes tokenization will open Bitcoin to DeFi using Atomic Swaps
“It feels like we’re opening a new chapter in the saga of blockchain evolution. As one of the early believers in Bitcoin and Mintlayer, I can’t help but feel a surge of excitement seeing Mintlayer Atomic Swaps come to fruition.”
-Charlie Shrem, Founder of Bitcoin Foundation.
Mintlayer also highlighted that the Atomic Swap Decentralized Exchange (DEX) will allow seamless swapping of any asset issued on Mintlayer with native BTC. The firm’s native cross-chain swaps aim to reduce frictions in the DeFi space by enabling the use of Bitcoin within DeFi applications.
The layer2 platform also revealed that its Atomic Swaps are powered by Hash Time Locked Contracts (HTLCs). According to Mintlayer, HTLCs create a time-based escrow using cryptographic passphrases which ensures that trades are either completed successfully by both parties or automatically voided. The company argued that HTLCs enable secure, peer-to-peer cryptocurrency exchanges without intermediaries. In addition, Mintlayer is confident that HTLCs will allow users to maintain control of their native assets throughout the transaction process.
The company also introduced flexible trading functions for Mintlayer-native assets. The firm hopes that flexible trading functions will provide users with greater control and versatility in managing their digital assets.
Mintlayer resorts to UTXO and Rust for privacy and scalability
The platform revealed that its unspent transaction outputs (UTXO) model will support efficient transaction validation and lightweight client implementations. Mintlayer maintained that the UTXO model is best for its enhanced privacy, scalability, and seamless integration with Bitcoin’s ecosystem. In addition, the firm hopes that the UTXO model will support efficient transaction validation and lightweight client implementations.
Mintlayer also acknowledged its integration of Rust for its node development. The company said it selected Rust due to its exceptional efficiency, safety, and ability to ensure reliable software via advanced threading. The company also addressed the use of the Bech32 standard that will ensure integrity and distinguish among various address types and networks. Rust hopes to ensure all output types on Mintlayer are fully tested, which will make it virtually impossible to make mistakes.
The platform also declared that the Mintlayer Node is highly optimized to allow its team to run the main stalking pool on a $50 Raspberry Pi. Multilayer’s low hardware requirements aims to promote inclusivity which will allow anyone to run a full node, even on a Raspberry Pi.
The firm believes that the Mintlayer Node’s level of efficiency is achieved through the non-Turing complete approach. The firm argued that the non-Turing complete smart contracts will enable easier audits and reduce potential errors. Mintlayer also hopes that the non-Turing complete approach will offer significant benefits in terms of security, efficiency, and predictability.
Mintlayer also revealed its Real World Asset (RWA) SaaS platform, which is running on Testnet for testing purposes. The firm believes the platform will help institutions by providing a template to deploy tokenized RWA and assisting with built-in compliance services. Enabling RWA will make it an ideal solution for bringing traditional assets into the digital realm.
Mintlayer also disclosed that it utilizes a Proof-of-Stake consensus mechanism called Pulsar Consensus. The firm argued that the mechanism combines the best aspects of modern blockchain technology with unique features. Pulsar Consensus employs Verifiable Random Functions for fair block producer selection and introduces staking pools with delegation options. The firm admitted it ensures both security and decentralization while maintaining an average block time of two minutes.
The company also revealed its plans to develop the ZK Thunder Network, a high-speed, EVM-compatible Layer 3 solution on Mintlayer. The firm will utilize the upcoming technology by combining Layer 2 security with EVM compatibility and ZK scalability. Mintlayer hopes to significantly enhance Bitcoin’s functionality by using the upcoming technology.
The firm also announced on November 25 that Mintlayer version 1.0.1 is out, and node operators need to update their nodes before January 15, 2025. The company disclosed that its 1.0.1 version will have two major updates: Atomic Swaps and improved trading functions, which complete the first full version of Mintlayer.
