O3 Layer Technical Information

Settlement

O3 Layer utilizes the Arbitrum Orbit stack as its modular Settlement layer, making it the first Layer 3 solution for Bitcoin. This layer ensures the final completion of financial transactions by leveraging Arbitrum for efficient and secure processing. Transactions on the Bitcoin network are verified and validated within blocks, with the Arbitrum-based settlement layer enhancing efficiency and security. This approach ensures a safe and effective transfer of value within Bitcoin's decentralized framework.

Execution and Verification Layers

Our project integrates cutting-edge technologies to deliver superior performance and reliability in blockchain transactions. For the execution layer, we leverage Arbitrum Orbit's Nitro stack, a robust solution for efficiently processing smart contracts and automating transactions at scale. In tandem, LayerEdge serves as our verification layer, providing thorough and precise validation of our state by settling verifiable proofs on Bitcoin. Arbitrum and LayerEdge bring their expertise to ensure that our infrastructure is both scalable and secure, setting a new standard for blockchain execution and verification.

Data Availability

The modular structure of O3 Layer incorporates Avail as the Data Availability (DA) layer to enhance data access and availability. This layer transparently and accessibly stores all data and transaction information on the blockchain, enabling easy access for all network layers. By boosting data transparency and integrity, Avail ensures the accuracy of transactions and the overall reliability of the system. This approach allows for complete and precise data utilization, resulting in more efficient and secure blockchain transactions.

Why Arbitrum Orbit?

A Gentle Introduction to Arbitrum Orbit

Arbitrum Orbit is a new product that enables the creation of customizable Arbitrum Rollup and AnyTrust chains.

Key Points

• Arbitrum Orbit: A permissionless way to launch customizable chains using Arbitrum technology.

• Layer 3 (L3) Chains: Octopus brings the first L3 on Bitcoin with adopting the Arbitrum Orbit and Layeredge HMDA to revolutionize the ecosystem.

• Customization: Configure chain components such as throughput, privacy, gas token, governance, precompiles, and data availability layers.

• Arbitrum Nitro: The tech stack powering Orbit chains, offering interactive fraud proofs, advanced compression, EVM+ compatibility via Stylus, and continuous improvements.

What is Orbit?

Arbitrum Orbit allows you to create customizable L2 or L3 chains. L3 Orbit chains can settle to other L2 chains, such as Arbitrum One, which in turn settles to Ethereum. Orbit chains are configurable instances of the Arbitrum Nitro tech stack, tailored precisely to specific use cases and business needs.

Problem Solved by Orbit

Ethereum's high demand, or we can sign same Bitcoin in our case, for block space often leads to congestion and high costs. Arbitrum's Rollup and AnyTrust protocols alleviate this by offloading transactions to decentralized networks supporting Arbitrum One and Arbitrum Nova L2 chains, respectively.

• Arbitrum One: Uses the Rollup protocol, storing raw transaction data on Ethereum L1.

• Arbitrum Nova: Uses the AnyTrust protocol, storing raw transaction data with a Data Availability Committee (DAC), expediting settlement and reducing costs.

Benefits of Orbit Chains

Orbit chains offer the ability to create dedicated AnyTrust or Rollup chains with a higher degree of control over features and governance, benefiting from Ethereum's security while supporting many times its capacity.

In summary, Arbitrum Orbit unlocks an infinite garden for scaling Ethereum, with each Orbit chain tailored precisely to its owner's needs.

HMDA by LayerEdge Hybrid Modular Data Availability (HMDA) as a solution to the challenges of data congestion and rising transaction fees in Bitcoin, exacerbated by the increasing use of Layer 1 and Layer 2 applications. HMDA enhances scalability and security by combining Bitcoin’s Proof of Work consensus with modular data availability frameworks.

Key components:

• Bitcoin timestamping: Mitigates long-range attacks and speeds up the unbonding of staked assets.

• Checkpoints and block hashes: Ensure data integrity and resilience by recording these on the Bitcoin blockchain.

Advantages of HMDA:

• Faster block times and finality: Block times of 12-20 seconds compared to Bitcoin’s 10 minutes.

• Improved transaction processing and scalability: Enhanced efficiency for smart contract execution and interactive applications.

• Reduced data congestion: By storing large data on modular solutions and state proofs on Bitcoin, it prevents severe data clogging and high transaction fees.

HMDA’s approach of leveraging both Bitcoin and modular data availability will significantly improve data availability, scalability, and security, benefiting the broader blockchain ecosystem and fostering wider adoption.