@shutosh on Nostr: Is #Citrea trying to complete with #lighning ? If yes , wouldn't miners get even less ...

Is #Citrea trying to complete with #lighning ?

If yes , wouldn't miners get even less fees on the base layer ?

#askNostr

Citrea operates as a Layer 2 (L2) solution for Bitcoin with the primary goal of enhancing Bitcoin's capabilities, specifically in terms of scalability and functionality, without altering its core consensus rules. Here's what they do as an L2:

* Scalability: Citrea aims to increase the transaction throughput of the Bitcoin network. By processing transactions off-chain using their zkEVM (zero-knowledge Ethereum Virtual Machine) and then settling the validity of these batches on the Bitcoin blockchain with succinct zero-knowledge proofs, they can handle a significantly larger volume of transactions than the base Bitcoin layer. This helps to reduce congestion and potentially lower transaction fees for users.

* Programmability: Bitcoin's native scripting language has limited capabilities for complex computations and smart contracts. Citrea introduces a fully Ethereum Virtual Machine (EVM) equivalent environment on its L2. This allows developers to build and deploy decentralized applications (dApps) on Citrea using the familiar Solidity programming language and the vast ecosystem of Ethereum development tools. This brings smart contract functionality to the Bitcoin ecosystem in a way that leverages Bitcoin's security.

* Trust-Minimized Bridging: Citrea is developing a novel bridging mechanism, like the Clementine Bridge, that aims to improve the capital efficiency of moving Bitcoin (BTC) between the base layer and the L2. Traditional bridging often requires users to lock up BTC as collateral for each transaction. Citrea's approach, utilizing BitVM2 and zero-knowledge proofs, intends to allow operators to process numerous withdrawals with a single collateral deposit, making it more efficient to use BTC within the Citrea ecosystem for DeFi and other applications.

* Data Availability and Settlement: While processing occurs off-chain, Citrea uses Bitcoin as its data availability and settlement layer. By inscribing zero-knowledge proofs and committing to the state of their rollup on the Bitcoin blockchain (using OP_RETURN and other methods like Taproot outputs), they ensure that the history and validity of their L2 operations are anchored in Bitcoin's secure and immutable ledger. This allows anyone to independently verify the integrity of the Citrea L2.

* Enhanced Functionality: By providing a programmable environment and efficient transaction processing, Citrea aims to unlock new use cases for Bitcoin beyond just a store of value. This includes the potential for decentralized finance (DeFi) applications, NFTs, and other complex functionalities to be built on top of Bitcoin through the Citrea L2.

In essence, Citrea acts as an execution layer for Bitcoin, where more complex and high-volume activity can occur, while still relying on Bitcoin's robust security and decentralization for settlement and data integrity. They leverage zero-knowledge proofs to ensure the validity of their off-chain computations, making it possible to extend Bitcoin's utility without requiring any changes to the Bitcoin protocol itself.