Here's how Bitcoin is transforming into Web3's backbone

Crypto Insight

21-05-2025

To combine Bitcoin's robust security with the flexibility of the EVM, Syscoin uses advanced rollup technology while addressing issues overlooked by most layer-2 models.
Despite innovative layer-2 protocols, scalability and smart contract functionality remain headaches for Web3 developers due to Bitcoin's fundamental limitations. Even the Bitcoin Taproot update, which opens doors to smart contracts — self-executing agreement codes — falls short of fully meeting scalability needs without compromising security.
On the other hand, while the Ethereum network offers convenience in developing decentralized applications (DApps), it cannot achieve the same level of security as Bitcoin.
Although sidechains that operate under their own rules while connecting to the main blockchain present a scalability alternative, research indicates that issues may arise from the mechanisms used to link to the main chain.
Fortunately, there are emerging alternatives that adhere to Bitcoin's core security principles while keeping transaction costs at manageable levels. Scaling Web3 with Bitcoin security
Bitcoin's PoW mechanism requires network participants to perform massive calculations to verify transactions and create blocks, effectively preventing fraudulent activities by making the cost of cheating higher than potential profits. On the other hand, EVM offers developers convenience by allowing them to write and deploy smart contracts that execute automatically on a decentralized network.
Syscoin's latest development, Edgechains, are independent, modular blockchain layers that combine Bitcoin's PoW security with advanced scalability solutions. Unlike traditional sidechains, which operate independently but often lack robust security, or layer-2 solutions, which rely on the main chain for security, Edgechains combine the strengths of both — while introducing key innovations like merge-mined security and native modularity.
They also lay the foundation for Bitcoin+, a new standard for transforming Bitcoin into the secure base layer of a scalable, interoperable Web3 economy. zkSYS, the first live Edgechain implementation, is currently operating on testnet, showcasing the modular execution, trustless finality and low-cost scalability that Edgechains make possible.
Edgechains integrate both layer-2 and sidechain design principles while introducing key innovations. The primary distinction is that Edgechains leverage Bitcoin's PoW security through merge-mining, ensuring a high level of trust and resistance against attacks, something L2s and sidechains do not inherently offer. By enabling miners to earn additional revenue from Syscoin while reusing the same computational work, Edgechains create a symbiotic relationship that strengthens both networks without diluting Bitcoin's security.
Further strengthening network resilience, Edgechains introduced AI-powered Sentry Nodes, which enhances decentralized sequencing, autonomous governance and fraud detection. Multi-quorum chainlocks, Syscoin's finality mechanism, prevent selfish mining attacks even against miners controlling significant portions of the hashrate.
Designed to integrate with each aspect of the Syscoin ecosystem, Edgechains employ a zkRollup model and a layer-1 proof of data availability mechanism to enable high-throughput, low-cost transactions by bundling multiple transactions into a single proof, reducing data load on the main chain without sacrificing security. Near-instant transfers
Edgechains are enhancing the Bitcoin network's capacity to process transactions swiftly and securely without overloading by utilizing a zkRollup mechanism. Instead of assuming transactions are valid until challenged, like optimistic rollups, zkRollup technology uses cryptographic, zero-knowledge proofs to verify all transactions upfront before they are submitted to the chain.
These proofs guarantee the correctness of transactions without revealing data or requiring any trust in third parties. zkRollups eliminate the need for lengthy fraud challenge windows, enabling near-instant finality and significantly reducing onchain data requirements. This approach ensures all necessary information is verified without congesting Bitcoin's main system.
The Edgechains framework enables trustless execution of complex applications through zero-knowledge cryptography and near-instant finality — secured by merge-mined proof-of-work. It significantly boosts throughput and lowers transaction costs without compromising Bitcoin's core principles. This architecture powers Bitcoin+, a native Bitcoin-EVM ecosystem that brings modular scalability and smart contract utility to Bitcoin itself.
The platform also takes advantage of the unspent transaction output (UTXO) model alongside EVM capabilities to provide modularity and scalability. UTXO is a method used by some blockchains like Bitcoin, where each transaction begins with coins that haven't been spent from previous transactions and ends with output coins that are available for future transactions This hybrid model positions Syscoin uniquely in the industry, offering both Bitcoin's proven accounting model and Ethereum's programmable flexibility within a single architecture.
Addressing scaling challenges in client security, Edgechains mitigate vulnerabilities that other layer-2 models often overlook, such as data availability, censorship resistance and fraud proofs. The platform minimizes reliance on operators by leveraging decentralized validation methods based on the security model of Bitcoin, reducing centralization risks and making the system more resistant to manipulation. Data availability mechanism
BitcoinDA, the market's pioneer data availability (DA) mechanism tailored to enhance scalability on Syscoin, represents one of Edgechains's critical advancements. Unlike traditional DA solutions, BitcoinDA leverages Syscoin's Proof-of-Data Availability (PoDA) to ensure rollups inherit the full security of Bitcoin's PoW network.
The recently introduced Zero-Knowledge Data Availability (zkDA) extends this capability, allowing any rollup on any chain to leverage Bitcoin's security for data availability without sacrificing throughput. With zkDA, developers can finally scale confidently on Bitcoin-backed infrastructure — without compromising on security, decentralization or cost.
zkRollups minimize onchain data storage while guaranteeing all transaction information remains verifiable and retrievable, eliminating reliance on centralized data availability layers. By maintaining data integrity at the base layer, BitcoinDA enables rollups to achieve both high transaction throughput by processing transactions offchain and trust-minimized security by anchoring data availability to a Bitcoin-backed layer 1.
By integrating zkRollups, Edgechains further improve scalability without compromising decentralization or trust assumptions. Ultimately, edgechains are the architecture of Bitcoin+ and the vision of Bitcoin as the secure foundation for Web3.
Source: https://cointelegraph.com/news/here-s-how-bitcoin-is-transforming-into-web3-s-backbone