Glossary

An explanation of often-used terms and abbreviations

Glossary

Term	Abbreviation	Explanation
Botanix EVM	-	Name of the blockchain network developed by Botanix Labs, the first EVM equivalent layer 2 built on top of Bitcoin.
Bridging	-	The act of transferring bitcoin from the Bitcoin main chain to the Botanix EVM (peg-in) or the other way around (peg-out).
Byzantine Fault Tolerance	BFT	A property of distributed systems that allows them to continue operating correctly even when some nodes fail or act maliciously. In Botanix, the consensus mechanism can tolerate up to 5 out of 16 federation members behaving incorrectly.
CometBFT	-	CometBFT is a blockchain application platform that provides Byzantine Fault Tolerant (BFT) State Machine Replication (SMR) for arbitrary deterministic, finite state machines. It serves as the consensus engine for Botanix.
Consensus	-	The process by which distributed nodes in a blockchain network agree on the current state of the blockchain. Botanix uses CometBFT consensus with a 16-member federation.
Decentralized application	dApp	A software application that runs on a distributed computing system, often a blockchain, rather than on a single centralized server. dApps operate autonomously, with code executed on a blockchain network that is maintained by multiple nodes, ensuring transparency, security, and resistance to censorship.
Distributed Key Generation	DKG	A cryptographic process that allows multiple parties to collectively create shared cryptographic keys without any single party knowing the complete key. Botanix's federation uses DKG to generate Bitcoin custody keys.
Epoch Block	-	Special blocks created approximately every 10 minutes that synchronize with Bitcoin blocks and trigger batch processing of peg-out requests.
Ethereum Virtual Machine	EVM	A decentralized computing engine that executes smart contract code on the Ethereum blockchain. It allows for the creation and execution of decentralized applications (dApps) by interpreting and running bytecode in a secure and isolated environment.
Federation	-	The group of 16 trusted entities that collectively secure the Botanix network through multi-signature Bitcoin custody, block production, and consensus participation.
Finality	-	The point at which a transaction becomes irreversible. Botanix provides immediate finality through CometBFT consensus, meaning transactions cannot be reversed once confirmed.
Flexible Round-Optimized Schnorr Threshold Signatures	FROST	A protocol that minimizes the number of rounds of communication between participants in Schnorr signature schemes. It requires a maximum of three rounds for signing and can implement 'n-of-m' threshold signatures represented by a single signature on the blockchain, saving block space and increasing privacy.
Multi-signature	Multisig	A cryptographic mechanism that requires multiple signatures to authorize a transaction. Botanix uses a 12-of-16 multi-signature scheme for Bitcoin custody, meaning at least 12 federation members must sign to spend Bitcoin.
Peg-in	-	The process of depositing Bitcoin to receive equivalent tokens on Botanix. Users send Bitcoin to a derived deposit address and receive Botanix tokens after confirmation and federation verification.
Peg-out	-	The process of withdrawing Botanix tokens to receive equivalent Bitcoin. Users burn their Botanix tokens and receive Bitcoin at their specified address through federation-coordinated transactions.
Proof of Authority	PoA	A consensus mechanism where network validation is performed by approved identities, known as validators or authorities. Botanix uses PoA with its 16-member federation as the authorities.
Proof of Stake	PoS	A consensus mechanism used in blockchain networks where validators are chosen to create new blocks based on the amount of cryptocurrency they are willing to "stake" or lock up as collateral. It aims to achieve network security and consensus more energy-efficiently compared to Proof of Work (PoW).
Proof of Work	PoW	A consensus mechanism used by certain blockchains to secure the network and validate transactions. It requires participants (miners) to solve complex mathematical puzzles, which consume computational resources. Successfully solving the puzzle proves the work was done, allowing the miner to add a new block to the blockchain and receive a reward.
Reorganization	Reorg	A situation where previously confirmed blocks are replaced by an alternative chain. Unlike some blockchain networks, Botanix's CometBFT consensus makes reorganizations impossible, providing immediate finality.
Rust Ethereum	Reth	Reth (short for Rust Ethereum) is an Ethereum full node implementation that is focused on being user-friendly, highly modular, as well as being fast and efficient. Botanix uses a modified version of Reth to run its EVM-compatible execution layer.
Spiderchain	-	A series of successive multisigs between Botanix Orchestrators. The security is achieved through the decentralization of these multisig wallets. This series of successive multisigs effectively creates a network that safeguards the bitcoin of the Botanix EVM.
Threshold Cryptography	-	A cryptographic system that allows a group of participants to collectively perform cryptographic operations without any single participant having complete control. Botanix uses threshold cryptography for Bitcoin custody and transaction signing.
Threshold Signature	-	A digital signature scheme where multiple parties must collaborate to create a valid signature, but no single party can create the signature alone. Botanix uses 12-of-16 threshold signatures for Bitcoin transactions.
Unspent Transaction Output	UTXO	It represents the amount of digital currency someone has left remaining after conducting transactions. In blockchain systems like Bitcoin, a UTXO serves as a token that can be spent as input in a new transaction, effectively acting as the blockchain's version of a coin or currency note.
Validator	-	In the context of Botanix, the federation members who participate in consensus by validating transactions and voting on block proposals. All 16 federation members serve as validators in the CometBFT consensus process.