According to the release shared with Bitcoin.com News, the integration allows Arbitrum One, an L2 network on Ethereum, to function as a hybrid rollup that leverages both Bitcoin’s security and Ethereum’s scalability. By using BitcoinOS (BOS), the network gains trustless bridging and Bitcoin finality guarantees through the BOS Grail bridge.

The development teams believe this reduces counterparty risk compared to existing Bitcoin interoperability solutions. The BOS framework uses zero-knowledge proofs (ZK) to enable Bitcoin transactions to interact with other ecosystems. The integration is expected to provide bitcoin (BTC) holders with expanded access to decentralized finance (defi) applications and smart contracts, capabilities that have historically been limited on the Bitcoin network.

According to the announcement, Arbitrum currently hosts 8,333 BTC worth of wrapped bitcoin (WBTC), highlighting the demand for bitcoin exposure in its ecosystem. The BOS Grail bridge aims to address centralization concerns associated with WBTC by offering a trustless alternative for bridging assets.

The partnership strives to provide faster asset withdrawals from Arbitrum to Bitcoin. The BOS Grail vaults bypass the seven-day waiting period common among optimistic rollups, allowing users to move funds with near-instant finality. BOS provides a modular infrastructure that allows L2 networks to function securely without altering Bitcoin’s base layer.

The integration with Arbitrum marks a step toward greater interoperability between Bitcoin and Ethereum-based networks, potentially expanding Bitcoin’s role in the broader blockchain ecosystem. “BitcoinOS’s integration with Arbitrum demonstrates how our technology can support innovative Bitcoin ecosystem expansion,” Nina Rong, Head of Partnerships at Arbitrum Foundation remarked to Bitcoin.com News.

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