Botanix Labs Launches New Testnet for Spiderchain

Botanix Labs is launching a new testnet for its Bitcoin Layer 2 solution called Spiderchain, as announced on Wednesday.

The Aragog testnet replaces the previous unnamed testing network and includes several pre-mainnet applications, such as updates to the Bitcoin-backed stablecoin Palladium and decentralized exchange Blitzy.

Testnets are essential in the crypto industry, providing developers with a platform to test new blockchains and decentralized applications (dapps), helping identify bugs before a full production launch. Updating decentralized protocols is often challenging due to multiple stakeholders.

Botanix aims to bring Bitcoin back onchain. The term Spiderchain is derived from its unique structure, which uses randomized, decentralized multi-signatures to secure funds from the Bitcoin base layer on a scalable, Ethereum Virtual Machine (EVM)-equivalent software layer, resembling a spider web.

Unlike other Bitcoin Layer 2 solutions that depend on networks like Ethereum, the Internet Computer, Cosmos, or Polygon, Spiderchain utilizes a bespoke proof-of-stake solution that is native to Bitcoin.

> "Every member of the Bitcoin economy should work to ensure that demand for onchain applications endures so Bitcoin can fulfill its potential and transition from digital gold to a full global currency," stated the New York-based team.

Previous reports from The Block indicated that Spiderchain could support existing Ethereum-based applications and smart contracts using Bitcoin in just minutes. The previous testnet achieved approximately two million transactions, 400,000 unique addresses, and 20,000 token contracts.

Aragog is poised to be the final step before the network's mainnet launch in Q1 2025 and will introduce several technological innovations. These include an experiment with flexible round-optimized Schnorr threshold signatures, a cryptographic method that merges multiple key holders into a single multi-signature address, improving bandwidth efficiency and reducing error probabilities.

Additionally, while the earlier testnet version was operated by Botanix Labs using a single node, Aragog will distribute nodes worldwide.

Akash Gaurav, co-founder of Palladium Labs, noted, "Spiderchain offers a Bitcoin-native Layer 2 solution with its unique decentralized multisig approach. Unlike most Bitcoin Layer 2s, which are centralized, Spiderchain ensures true decentralization, providing the secure and sovereign smart contract platform essential for supporting our stablecoin and advancing Bitcoin DeFi."