Last updated
Yes✅
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S1-S5 Mainnet: S3
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$1.5M
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Medium
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Side-Testnet-1 - Completed ✅
Side-Testnet-2 - Completed ✅
Side-Testnet-3 - Completed ✅
S2 Incentivized Testnet (Phase 1) - Currently Live 🔥 - Details: Launch: May 10, 2024 Ending: TBA
The Side Protocol is a modular infrastructure designed to scale Bitcoin. At its core is SIDE, a Bitcoin sidechain secured by BTC and serving as the settlement layer for zk-rollups within the modular stack.
At Side, our mission has always been to facilitate seamless value exchange for Web3. As we progress, we're returning to initially focus on a specific domain: Bitcoin. Bitcoin is the most popular digital asset in the world with the largest market capitalization, but it lacks a reliable app ecosystem.
The Bitcoin landscape is undergoing constant evolution, marked by the emergence of scripts and L2 solutions that utilize various technological infrastructures to overcome Bitcoin's inherent computational limitations. However, this evolution creates a shortfall of fragmented liquidity and compatibility, potentially leading to significant disparities among network users. Additionally, dApp developers still encounter challenges when attempting to deploy their own comprehensive toolkit for application deployment.
The centerpiece of the Side Protocol is the SIDE Chain, a Bitcoin sidechain ready to serve as a settlement layer for wrapped packages deployed by developers using our toolkits and framework. As a settlement layer, the SIDE Chain will facilitate proof verification, liquidity unification, value exchange, and interaction among wrapped packages. Additionally, through integration with a shared sequencer (Espresso), we will enable atomic interaction between deployments. Leveraging our integration with Babylon, the SIDE Chain will be secured by Bitcoin as an asset and timestamped by Bitcoin. The SIDE Chain will also provide Bitcoin Connect and Rollup Abstraction, allowing users to seamlessly interact with the SIDE Chain and various wrapped packages using their Bitcoin accounts and wallets, just as they would in a unified environment. Developers will enjoy flexibility in choosing their desired level of data availability (DA), including Avail, Celestia, Nubit, or others, based on their specific requirements, balancing cost and security.
Our previous efforts, including SDK module development, interchain applications such as atomic swaps and network liquidity via the IBC protocol, chain abstraction technology stacks, zk research, and verification system optimization, are all converging in this architecture to support the Bitcoin wrapping ecosystem and its end users. Additionally, we will support native atomic swaps for Bitcoin, allowing users to easily exchange native BTC for wrapped tokens. Furthermore, we have chosen Plonky2 for creating local proofs optimized with GPU hardware acceleration (CUDA).
The IBC protocol will serve as the default communication protocol for interconnecting wrapped networks in the wrapped Bitcoin ecosystem through the Side Protocol. While the SIDE Chain will also support smart contract capabilities for deploying native dApps, other developers will not be able to deploy directly on it to prevent competition for block space.
1. Interchain and Bridging Capabilities: The emergence of new networks requires the creation or duplication of exchanges and liquidity infrastructures for each blockchain, which can be burdensome and inefficient. Interchain and bridging solutions play a key role in addressing this issue by enabling the issuance of wrapped assets on a unified platform (within a single chain), facilitating interaction between assets from different chains. However, growing concerns about the security and integrity of bridges require careful development and reliable protocols to ensure seamless and secure interchain interaction.
2. Blockchain Scalability Issues: Blockchain technology scalability issues can significantly degrade DEX performance. It is crucial to address scalability issues to ensure that DEX can serve a growing user base and transaction volume without compromising transaction speed or incurring high costs.
3. CLOB-based DEX Challenges: Central Limit Order Book (CLOB) DEX aim to provide a trading experience similar to centralized exchanges. However, their decentralized nature poses challenges related to performance, scalability, and user convenience, necessitating innovative solutions to bridge the gap between centralized and decentralized trading paradigms.
4. AMM-based DEX Challenges: Impermanent losses and slippages are inherent to Automated Market Maker (AMM) DEX. Resolving these issues is crucial to protect the interests of both liquidity providers and traders, providing them with the confidence to engage with DEX without fear of undue losses.
5. Gas Fees: High gas fees are a significant deterrent, especially for small traders, when interacting with DEX. Addressing the gas fee issue is crucial to ensure inclusivity and cost-effective access to decentralized trading platforms for users of all trading volumes.
6. User Interface and Experience: The complexity inherent in DEX interfaces may deter newcomers to the cryptocurrency space. Optimizing user experience and simplifying the interface are necessary to attract a broader user base and ensure easy platform navigation for all users.
7. Product Diversity: Centralized exchanges (CEX) often offer a full range of trading products catering to various user needs, unlike many decentralized exchanges (DEX), which typically focus on individual trading products. This limitation may deter experienced traders seeking diverse trading options and financial services.
