Scaling Bitcoin with Account Vault Model (AVM)

The hard things about Bitcoin

Ordinals or the “NFTs” of Bitcoin is possible because of two recent upgrades on Bitcoin: Segregated Witness (2017) separating Transaction Data and Witness Data, and Taproot (2021) increasing network capacity and batch transaction processing. The only problem is the scalability because Bitcoin is not designed for smart contracts and high transaction fees. We need to solve the issue because of the demands for Bitcoin blockspace and influx of capital from BTC.

A new programmability layer for Bitcoin

The NEAR ecosystem is not just a blockchain, but consists of the layer one blockchain that could scale to 1B+ users and NEAR upcoming release of Chain Signatures and Account Aggregation enables multi-chain even further. Account Aggregation is a new feature that allows a NEAR account to control multiple addresses from different chains. This makes it possible for a single NEAR account to sign transactions to any other chain, including Bitcoin.

At EAST Blue, we are building our stack on top of NEAR, leveraging the whole ecosystem like the L1 for smart contracts and Chain Signature / Account Aggregation to address Bitcoin scalability problems.The Account Vault Model (AVM) works by transferring the ownership of an account to a smart-contract and has the ability to manage an account using multiple access keys enabled the transfer of an account to a smart-contract without inventing an entirely different protocol of smart contract.

"One example is an NFT marketplace that trades Account Vaults containing Ordinals. The wrapped Account Vaults can be traded, auctioned, staked, and borrowed just like ordinary NFTs. Or, imagine a BRC-20 launchpad that starts as a NEAR smart contract, and then users can unwrap their tokens as real BRC-20 assets on Bitcoin. The BTC itself could be transferred to the NEAR blockchain to be traded on DApps - the newly minted BTC can be traded with other existing assets, swapped, borrowed, and so on."

AVM is the Solution

We integrate Bitcoin Assets into the NEAR protocol through The AVM. This way, Bitcoin assets can work just like other things on NEAR and connect with existing projects. By employing NEAR as both the settlement and execution layer for the EAST Blue

infrastructure, we capitalize on NEAR's established decentralization and security. "Our solution stands in stark contrast to others that require initializing validators or sequencers. We want decentralization and security" Riqi, East Blue’s CEO, states firmly.