How does the Spiderchain EVM work?
The Spiderchain EVM is a second layer protocol on top of Bitcoin that makes it possible for people to use decentralized applications on Bitcoin. That means that you will be able to use decentralized exchanges (DEX), lend and borrow money, trade non-fungible tokens (NFTs) and so on. Things like this have been possible on Ethereum but Botanix Labs is unlocking the same world for Bitcoin by building the Spiderchain EVM.
You can use the Spiderchain EVM by bridging some of your bitcoin from the Bitcoin base layer (L1) to the Spiderchain EVM (L2). You might be wondering what happens to the bitcoin that you bridged? It gets stored safely in a newly created multisig wallet that gets guarded by our vast network of Orchestrator nodes. They will hold onto your bitcoin until you want it back. In the meantime, you get bitcoin on the Spiderchain EVM that you can use with the applications that have been built on our platform. When you no longer want to use your bitcoin with the applications, you can simply bridge out of the Spiderchain EVM and receive the bitcoin back on the parent chain.
So why won't the Orchestrators that guard your bitcoin in the multisig wallet steal your bitcoin?
Because they have to put in a stake to become an Orchestrator! This means that they lock in some of their own funds when they want to become part of our network. The moment that we notice that some shady stuff is going on or they are not behaving the way they are supposed to, they will be taken away some of their staked funds. We have more security features that require some deeper understanding so if you are interested, have a look at the section with Advanced concepts where you will find lots of topics on security.
An example
Alice owns some BTC and would like to use a lending platform to lend her money to others to make a return on her capital.
Alice bridges some of her BTC to the Spiderchain EVM. She now has an equal amount of BTC available on the Spiderchain to use.
Alice decides to lend her money on one of the lending dApps that are available on the Spiderchain EVM.
After a few weeks / months / years, Alice is happy with her profit and decides to take some money out of the Spiderchain EVM back to the Bitcoin main layer. She bridges out.
Alice is left with more BTC than she had in the beginning
Alice is happy and buys herself a celebratory drink! 💃
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