Bitcoin remains the most secure and decentralized cryptocurrency to date, yet it lags behind in terms of speed (requiring 10 minutes to process a block on its chain) and lacks smart contract functionality, a feature that Ethereum excels in.
Smart contracts are blockchain-based applications enabling numerous new use cases, from decentralized exchanges (DEXs) for trading cryptocurrencies to practical applications like decentralized finance (DeFi) or supply chain tracking.
However, this narrative might undergo a significant shift with Arch Labs, the development company behind Arch Network, securing a substantial $7 million investment to build a platform capable of bringing smart contracts directly onto the Bitcoin blockchain.
The initial funding round was led by Multicoin Capital, with other notable participants including Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings, Tangent, Cypher, and Newman Capital.
Arch prides itself on innovating within the Bitcoin ecosystem alongside some of the industry's top funds and strategic partners.
By providing a platform with smart contracts on Bitcoin, Arch aims to reimagine what's possible on the world's largest and most secure blockchain, directly addressing the Bitcoin community's interest in leveraging Bitcoin's security and liquidity for more complex applications.
Arch plans to utilize this investment to advance the development of decentralized finance (DeFi) applications directly on the Bitcoin blockchain, eliminating the need for secondary layers or bridges.
Relying on secondary layers often complicates user experience and compromises the inherent security benefits of operating on the Bitcoin blockchain.
Matt Mudano, Arch's co-founder and CEO, sees this as a fundamental shift in Bitcoin's evolution, unlocking a new ecosystem of applications on the world's most secure and liquid blockchain.
The funds will primarily be used to expand the platform's development team. By hiring new skilled developers, Arch Labs aims to accelerate the creation and refinement of decentralized applications.
Arch features a proof-of-stake blockchain equipped with a Rust-based zkVM, known as ArchVM, and a network of decentralized validators.
Unlike other Bitcoin Layer 2 solutions, Arch does not require users to connect their assets to an unreliable chain to utilize it, ensuring security without compromising speed.
In addition to expanding its team, Arch Labs plans to launch a public development network (devnet) followed by the mainnet release scheduled for the second half of the year.
The mainnet will allow early testers and future users to explore the platform's capabilities, enhancing stability and functionality before a full-scale launch.