Arch Labs secures $13M investment to build ArchVM, a groundbreaking platform that enables decentralized applications and protocols native to Bitcoin, revolutionizing smart contracts on the original blockchain.
Arch Labs, a leading developer in decentralized finance (DeFi), has raised $13 million in funding to build ‘ArchVM,’ a groundbreaking platform that aims to provide smart-contract functionality directly on the original Bitcoin blockchain. This significant investment, valued at $200 million, was led by prominent venture capital firm Pantera Capital.
The primary objective of Arch Labs is to enable decentralized applications and protocols native to Bitcoin, thereby avoiding the need for bridging assets to layer-2 networks. This approach is crucial, as layer-2 networks can introduce additional risks. By integrating smart contracts natively into the Bitcoin blockchain, ArchVM will facilitate ‘Turing-complete‘ smart contracts at the base layer, offering Solana-like transaction speeds.
ArchVM is designed to handle off-chain computations, allowing for the development of complex smart-contract functionality on the Bitcoin blockchain. This innovative platform has the potential to transform the way developers interact with the Bitcoin network, enabling seamless integration of decentralized applications and protocols.
The Bitcoin blockchain is a decentralized, digital ledger that records all Bitcoin transactions.
It is maintained by a network of computers around the world, working together to validate and add new transactions.
The blockchain uses cryptography to secure transactions, making it virtually unhackable.
Each block in the chain contains a unique code, called a 'hash,' that connects it to the previous block.
This creates an immutable record of all Bitcoin transactions since its inception in 2009.
Decentralized applications (dApps) are software programs that run on a decentralized network, such as a blockchain.
Unlike traditional centralized apps, dApps operate independently and are not controlled by a single entity.
They utilize 'smart contracts' to facilitate secure, transparent, and trustless interactions between users.
Decentralized networks enable peer-to-peer transactions, data sharing, and collaboration without the need for intermediaries.
This innovative approach has opened up new possibilities for software development, enabling greater scalability, security, and user autonomy.
The concept of introducing smart contracts to Bitcoin began gaining traction in October with the release of the BitVM computing language. Since then, numerous projects have adopted BitVM as a foundation for bringing smart contracts to Bitcoin via layer-2 networks or bridges. Arch Labs‘ ambitious plan is to build upon this momentum, leveraging BitVM‘s capabilities to create a more robust and secure smart-contract ecosystem on the Bitcoin blockchain.
A smart contract is a self-executing program with the terms of an agreement written directly into lines of code.
It facilitates, verifies, and enforces the negotiation or execution of a specific contract.
Smart contracts allow for secure, transparent, and tamper-proof transactions, eliminating the need for intermediaries like lawyers and notaries.
They use blockchain technology to execute actions automatically when predetermined conditions are met.
The recent funding round marks an exciting milestone in Arch Labs‘ journey to revolutionize the world of Bitcoin smart contracts. With $13 million in funding and a valuation of $200 million, the company is well-positioned to make a significant impact on the development of decentralized applications and protocols native to Bitcoin. As the landscape of DeFi continues to evolve, ArchVM has the potential to shape the future of smart contract functionality on the Bitcoin blockchain.
