How OmniBOLT Utilizes Lightning Channels to Introduce Smart Assets and DeFi to Bitcoin
OmniLayer has already proven itself as highly secure and stable, supporting hundreds of billions of dollars worth of USDT since its inception. With OmniBOLT, it is now working to offer additional functions to reach broader mainstream adoption and usability. Utilizing the OmniBOLT layer two solution, users can easily issue and interact with decentralized smart assets and off-chain smart contracts directly on top of Bitcoin as a lightning network component.
With the massive explosion in decentralized finance, skyrocketing from less than $1 billion in total locked value (TVL) at the beginning of 2020 to its current TVL of over $40 billion, OmniBOLT brings the opportunities available through DeFI to the largest and most valuable decentralized network, the Bitcoin blockchain. By introducing the DeFi spectrum to the Bitcoin network in a highly scalable and cost-effective manner, OmniBOLT will usher in a new era of smart contract and DeFi capabilities.
Building Out a More Efficient System
Although the Lightning Network offers superior functionality for cost-effective and efficient Bitcoin transactions, there are still many drawbacks that OmniBOLT builds upon to increase its value proposition. The Lightning Network enables quick and inexpensive Bitcoin transactions, but the technology is limited to only providing that single function. OmniBOLT takes this concept to a new level, allowing for decentralized financial applications to occur on top of the Bitcoin network. This benefits all stakeholders interacting with the blockchain ecosystem, including asset owners, wallet and application developers, cryptocurrency exchanges, and more.
OmniBOLT offers a HD light client mechanism for securing operations within a digital wallet, making integration extremely smooth. This introduction will bring the Lightning Network’s core competencies, mainly high transaction speeds and low fees on Bitcoin’s blockchain, to smart contract applications and their users.
Like OmniBOLT, many other layer two solutions have launched their testnets or mainnets, but they struggle to offer the same robust set of features. By utilizing functional aspects like atomic swaps, OmniBOLT allows for the exchange of assets throughout networks like LND and OBD. The features that OmniBOLT presents make interacting with applications using intensive smart contracts much cheaper and easier, as it provides the framework for fast and efficient solutions missing from the current marketplace.
OmniBOLT Solve Bitcoin’s Scalability and Interoperability Problems
The basis of an efficient layer two network is the ability to provide low fees and almost instantaneous transaction finality; OmniBOLT’s approach makes it a much more viable alternative than its competitors. Other layer two solutions are working on bringing DeFi and asset creation to the Bitcoin network, such as RGB and RSK, but they are relatively limited when compared to OminBOLT’s offerings. For example, RGB has interoperability issues that OmniBOLT has overcome.
Unlike other players focusing on advancing Bitcoin’s scalability and transactional capabilities through layer two solutions, OmniBOLT keeps its data on-chain. Some of our competitors have opted to store asset or smart contract data off-chain, giving the deployer undue power and influence over the community of users. This may speed up the ability to complete transactions and reduce costs, but it does not promote the decentralized tenets that OmniBOLT holds dear. When exploring an example such as a decentralized exchange, with many currently available iterations managing billions of dollars in daily trading volume, it would be irresponsible to relegate the power over the platform solely to the deployer just because they created it; it does not properly consider the community’s needs.
With the introduction of collateral lending contracts, OmniBOLT allows for greater flexibility within smart contracts. This enables additional DeFi potentialities without excessive fees or the need for an intermediary. With OmniBOLT’s client-focused API, it is easier for developers to build out applications and launch assets on the network. In contrast, other competing networks require a much more specialized and technical skillset to create, limiting development possibilities to a select niche of developers.
At its core, OmniBOLT is taking the ease of use and functionality seen throughout the already established DeFi ecosystem and bringing it to Bitcoin’s network. By allowing the instant payment of assets via OmniLayer and the easy ability to deploy Bitcoin-based smart contracts, OmniBOLT is providing a new tier of functionality to the oldest and most established blockchain network. With a focus on fast transactions, low fees, and seamless cross-chain cooperation, OmniBOLT takes everything the Bitcoin network currently lacks and reintroduces it as a layer two solution.
