Build on Bitcoin activates ZK fraud proofs to push for full decentralization

     

New Kailua upgrade propels BOB toward L2Beat rankings and paves way for Ethereum-style DeFi on Bitcoin

Build on Bitcoin (BOB), a Bitcoin layer-2 network focused on bringing DeFi capabilities to Bitcoin, has implemented ZK fraud proofs as part of a significant technical upgrade aimed at achieving full decentralization.

With this Kailua upgrade, BOB enhances its optimistic rollup architecture by replacing traditional, slower fraud-checking systems with faster, cryptographic ZK fraud proofs. This shift allows transaction disputes to be resolved in minutes, reducing friction for users and increasing accessibility for those helping secure the network.

The move is a strategic step toward meeting L2Beat’s decentralization standards, which measure the security and maturity of layer-2 protocols.

Build on Bitcoin joins the full decentralization race

BOB’s co-founder Alexei Zamyatin said that the new upgrade positions the network at stage 0 on the L2Beat framework, making it one of 25 protocols to enter the platform’s rollup rankings.

“This upgrade will take BOB to stage 0 on L2BEAT,” Zamyatin said. “It’s then a relatively short jump to achieve stages 1 and 2.”

To move through L2Beat’s decentralization stages-ranging from 0 to 3-protocols must meet key criteria including functioning fraud-proof systems and external security councils. Zamyatin said that with Kailua solving the proof system challenge, only the implementation of a security council and delay mechanisms for upgrades remain. These features are reportedly already in development.

Currently, only two protocols-ZK.Money v1 and Honeypot PRT-have reached stage 2, while others like Arbitrum One and OP Mainnet lead in total value secured.

Unlocking ZK verification on Bitcoin

According to Zamyatin, the latest ZK improvements also open the door for direct ZK verification on the Bitcoin base layer.

“With the ZK upgrades to BOB, we also unlock ZK verification on the most important network: Bitcoin,” he said, referencing BitVM-a system enabling smart contract functionality on Bitcoin. The same validity proofs used on BOB can now be verified on Bitcoin via BitVM, bringing the project closer to building a fully Bitcoin-secured bridge.

This infrastructure will allow users and DeFi protocols to interact with native BTC on BOB, all backed by Bitcoin’s security.

Zamyatin has previously predicted Bitcoin DeFi will eventually surpass Ethereum and Solana, reaching over 300 million users.