Investment in Mintlayer
BuidlHodl Capital is excited to announce our investment in Mintlayer, a side-chain built on top of Bitcoin with the added capabilities for tokenisation and Decentralised Finance (DeFi) protocols.
With the explosion of the DeFi ecosystem on Ethereum, we have seen several shortcomings: a rise in gas fees, the increasing barriers of running a node and the numerous exploits on DeFi protocols that have resulted in millions of funds lost. Mintlayer seeks to address these issues of sustainability, decentralisation and security by creating the very first sustainable architecture for decentralised finance, inheriting and improving upon Bitcoin’s security model.
Mintlayer is committed to both the scalability and security of the blockchain, without the need to compromise one for the other. Users can batch multi-token transfers into a single transaction to increase scalability. The use of signature aggregation compresses each payment’s size by 70%, effectively preventing network congestion and ensuring that transaction costs remain low.
The side-chain utilises the Dynamic Slot Allotment (DSA) consensus, a refined model based on Proof-of-Stake, which provides economic incentives for users to maintain the network, while also lowering the risk of misbehaviour. Building upon the architecture of Bitcoin, Mintlayer also adopts the Script-based approach to its smart contracts functionality. This means that while the non-Turing complete system increases outcome predictability, as opposed to the Turing-complete systems used in the Ethereum Virtual Machine (EVM), it reduces the risk of smart contract exploits.
We believe that Mintlayer’s products addresses a large and serviceable market. With efforts thus far largely dedicated to bringing Bitcoin to Defi on Ethereum (think wBTC), Mintlayer’s emphasis on enabling Defi on Bitcoin is a mission we stand behind.
