Bridging and the Two-Way Peg

What is Bridging?

Bridging is the process of moving your Bitcoin between the Bitcoin mainnet (Layer 1) and Botanix (Layer 2). It's like transferring money between two bank accounts—your Bitcoin doesn't disappear, it just moves from one network to another so you can use it for different purposes.

How L1 Funds are Secured

When you bridge Bitcoin to Botanix, your actual Bitcoin doesn't leave the Bitcoin network. Instead, it gets locked in a multisig wallet that's part of the Spiderchain.

  • Secure Storage: Your Bitcoin is held in multisig wallets controlled by randomly selected Orchestrator nodes

  • Distributed Control: No single entity can access your Bitcoin—it requires multiple Orchestrators to agree

  • Spiderchain Protection: The dynamic multisig network ensures your funds remain secure even if some Orchestrators are compromised

Think of it like putting your Bitcoin in a high-security vault that requires multiple keys to open, with the keyholders being distributed around the world.

Peg-In Process (Bitcoin → Botanix)

When you want to use your Bitcoin on Botanix:

  1. Initiate Deposit: You send Bitcoin to your personal, generated Deposit Address based on the EVM-address where you want to receive the funds. This address can be found on https://bridge.botanixlabs.com

  2. Bitcoin Locked: Your Bitcoin is securely locked in the multisig wallet

  3. Confirmation: The network confirms your Bitcoin deposit on Layer 1

  4. Minting: An equivalent amount of Bitcoin is minted on Botanix and sent to your EVM-wallet

  5. Ready to Use: You can now use your Bitcoin with Botanix applications

Peg-Out Process (Botanix → Bitcoin)

When you want to withdraw your Bitcoin back to Layer 1:

  1. Initiate Withdrawal: You request to withdraw Bitcoin from Botanix on https://bridge.botanixlabs.com

  2. Orchestrator Approval: Orchestrator nodes verify and approve the withdrawal

  3. Burning: Your Botanix Bitcoin is burned (destroyed) on Layer 2

  4. Bitcoin Released: Your original Bitcoin is released from the multisig wallet

  5. Received: Bitcoin arrives in your Layer 1 wallet

Minting and Burning Mechanism

Minting (Creation)

  • When Bitcoin is locked in the Spiderchain, new Bitcoin is created on Botanix

  • This new Bitcoin is functionally identical to your original Bitcoin

  • Only Orchestrator nodes can mint new Bitcoin on Botanix

  • Minting only happens when actual Bitcoin is locked on Layer 1

Burning (Destruction)

  • When you withdraw, your Botanix Bitcoin is permanently destroyed

  • This ensures the total supply across both layers remains constant

  • Only Orchestrator nodes can burn Bitcoin on Botanix

  • Burning must happen before Bitcoin is released from Layer 1

The 1:1 Peg

Botanix maintains a strict 1:1 peg between Bitcoin on Layer 1 and Bitcoin on Layer 2:

  • Perfect Equivalence: 1 BTC locked on Layer 1 = 1 BTC minted on Botanix

  • Supply Conservation: Total Bitcoin across both layers never increases

  • Guaranteed Backing: Every Bitcoin on Botanix is backed by real Bitcoin locked in the Spiderchain

  • No Fractional Reserve: The system cannot create more Bitcoin than is deposited

Security Guarantees

The bridging system provides multiple layers of security:

  • Cryptographic Security: Multisig wallets use proven cryptographic methods

  • Economic Security: Orchestrators risk their stake for honest behavior

  • Distributed Control: No single point of failure in the custody system

  • Transparent Process: All deposits and withdrawals are publicly verifiable

User Experience

From your perspective, bridging is straightforward:

  • Deposit: Send Bitcoin to a provided address, receive equivalent Bitcoin on Botanix

  • Use: Interact with DeFi applications using your bridged Bitcoin

  • Withdraw: Request withdrawal, receive your original Bitcoin back on Layer 1

The complex security mechanisms operate transparently in the background, ensuring your funds remain safe while providing seamless access to Botanix applications.

Bridge vs. Traditional Approaches

Unlike centralized exchanges or custodial services:

  • You maintain control: No single entity controls your Bitcoin

  • Transparent operations: All processes are visible on-chain

  • Mathematically guaranteed: Security through cryptography, not trust

  • Non-custodial: Your Bitcoin remains yours throughout the process

Key Takeaways

  • Bridging moves Bitcoin between Layer 1 and Layer 2 without leaving Bitcoin's security

  • Spiderchain multisigs securely hold your Layer 1 Bitcoin

  • 1:1 peg guarantees your Bitcoin value is preserved across layers

  • Minting and burning ensure supply conservation and backing

  • Orchestrator nodes manage the process with strong economic incentives

The bridging mechanism is what makes Botanix possible—it allows Bitcoin to become programmable while remaining securely rooted in the Bitcoin network itself.

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