About Auran Network
Last updated
Last updated
The transformation of Bitcoin, from its initial use case as a digital store of value to becoming a pivotal entity within Decentralized Finance (DeFi) has led to enormous development efforts of infrastructure. To date, there have been two prevailing approaches to issuing digital assets & programmability on BTC.
Layer-2 solutions are crucial for broadening the Bitcoin network's capacity to accommodate DeFi applications. Platforms like Stacks have been at the forefront of driving smart contract capabilities for Bitcoin for the last several years. However, spurred by the recent surge in interest from the abundance of liquidity in the Bitcoin ecosystem, more than 50 Bitcoin Layer-2 solutions are in development including Bison Labs, Mezo, Merlin. This will inevitably lead to liquidity fragmentation across Bitcoin L2s & disjointed user experience.
Since the Taproot Upgrade went live in 2021, inscriptions became possible on Bitcoin. Inscriptions are like unique identifiers inscribed on a satoshi, the smallest currency unit of Bitcoin. This unique identifier along with other data that is added into part of a Bitcoin transaction subsequently gave rise to Bitcoin Metaprotocols. Ordinals was the first inscriptions meta-protocol that gained significant traction in early 2023, allowing for non-fungible assets to be stored directly on Bitcoin. Experimentation with the Ordinals protocol also lead to fungible token standards managed as inscriptions like BRC-20s, Tap, Pipe, Stamps, Atomicals, and more.
Metaprotocols showed significant demand for on-chain activity on Bitcoin. However, as demand grew we began to see the issue in user experience and fragmented liquidity on the base layer. Although there was significant adoption of BRC20 standard in 2024, there has been liquidity fragmentation from other emerging L1 protocols like Tap, Pipe, and now Runes. Runes will be a catalyst for significant liquidity in-flow into Bitcoin and a new opportunity for both native and L2 Bitcoin applications.
Auran will be building the first cross-chain Bitcoin protocol based on its own custom L1 built with Cosmos SDK, Tendermint, and a decentralized TSS network. A decentralized TSS is required in order to facilitate cross-chain and cross-standard communication amongst Bitcoin L1 and multiple Bitcoin L2s.
This protocol serves as a liquidity layer, bridging the nascent Bitcoin Layer 2 (L2) ecosystem with the Bitcoin blockchain. It enables users to conduct native swaps, with support for principal metaprotocols such as Runes, BRC20s, and Ordinals. Additionally, the protocol integrates a messaging system that enables cross-chain smart contract interactions within the Bitcoin ecosystem. This enhancement significantly broadens the Auran network's functionality. Combined with the smart contracts deployed on Auran using CosmWasm, it allows these contracts to interact with all networks connected to Auran, engage with major liquidity pools, and establish application-owned liquidity pools. The messaging protocol underpins these interactions, facilitating seamless connectivity across the ecosystem.
The Auran Network will foster the development of built-in decentralized applications through strategic partnerships with established entities. This collaborative model enables the creation of tailored solutions for key projects within the Auran ecosystem. It ensures these projects benefit from direct access to significant liquidity pools and the flexibility to implement bespoke fee structures.
