Willem Schroé: Building Botanix, a Bitcoin Layer 2 That Brings the EVM to Bitcoin

That is a very good question. I was actually a proof-of-work maximalist before designing the spiderchain, but I realized that a proof-of-work on a second layer actually doesn’t make a lot of sense. So, I looked into proof-of-stake and read all the different white papers. In 2022, when Ethereum merged to proof-of-stake, there were a lot of Bitcoiners, including Jack Dorsey, who were retweeting this article about why proof of stake is insecure. So, I read the article. Each of the arguments in it were actually solved if you build with proof-of-stake on a second layer. Let me go quickly over the arguments. Number one is the economic argument. Proof-of-work is a leaking system and proof-of-stake is a closed system. That means that proof-of-work has a decentralizing trend. You need to pay for the electricity, so value leaks out of the system. Bitcoin, over time, becomes more and more decentralized, because that value leaks out into the real world. Proof-of-stake is the opposite. It actually has a centralizing trend. The stakers get a bigger and bigger portion of the total 100% share of the assets over time. As a layer one, as a currency, that doesn’t make a lot of sense.

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