Pell Network: The Comprehensive Security Layer of the Bitcoin Ecosystem
Introduction
Over the past year, the concept of restaking has gained traction within the crypto world, particularly after Ethereum’s shift to PoS. Restaking allows users to utilize their staked assets, such as ETH or liquid staking derivatives (LSD), to participate in additional validation or security tasks across different protocols and applications. This innovative approach not only provides an additional revenue stream for stakers but also enhances the overall security and robustness of blockchain networks. By engaging in restaking, users can maximize the utility of their assets, contributing to a more secure and decentralized ecosystem. There is currently a fast-growing re-staking ecosystem running on Ethereum, led by the popular restaking protocol EigenLayer.
At the same time, the Bitcoin ecosystem has experienced a huge influx of users and builders since the introduction of groundbreaking innovations such as BRC-20, ARC-20, and Runes, leading to surging network fees. As a result, we are seeing a fast-growing Bitcoin layer 2 ecosystem racing to provide scalability and usability to the Turing-incomplete Bitcoin layer one network, hoping to bring on more use cases and users to the Bitcoin ecosystem. However, despite Bitcoin’s reputation as a highly secure and decentralized network, there is a gap in security inheritance between the layer 1 network and these layer 2 solutions, raising the need for a dedicated security layer between Biction layer one and all other protocols and applications built on top.
To address these challenges, innovative solutions like restaking and AVS are becoming increasingly important. Pell Network is a revolutionary restaking protocol designed to enhance the security of the Bitcoin ecosystem through security leasing. By aggregating native BTC staking and LSD restaking, Pell Network will offer a robust range of services in the form of AVS to other protocols and applications.
Pell aims to become a comprehensive security layer of the Bitcoin ecosystem while lowering the cost of development and generating passive yields for BTC and LSD holders.
How Pell Works
- Users stake native BTC or LSDs with Pell;
- Stakers can run their nodes or delegate to other nodes;
- Nodes provide AVS to middlewares and ecosystem applications to earn yields and distribute with delegated stakers.
What Problems Does Pell Solve
- Provide shared security for the Bitcoin ecosystem
Pell aims to become the largest shared liquidity and security layer within the BTC ecosystem. By aggregating liquidity and enabling nodes to provide validated services to other protocols, Pell Network bridges the security gap between BTC layer 1 and ecosystem protocols, ensuring the native security characteristics of the Bitcoin network can be seamlessly inherited within the ecosystem.
2. Lower the cost of development with Actively Validated Services (AVS)
Building security service layers can be expensive and time-consuming for individual projects, especially for a new ecosystem. With Pell Network, developers and projects can mix and match from the services provided by Pell according to their specific security requirements.
Nodes within the Pell Network can provide actively validated services to BTC ecosystem projects, including but not limited to oracles, cross-chain bridges, RPC nodes, application chains, data availability services, Rollup sorters etc.
3. Generate passive income for BTC holders
Pell allows BTC and LSD holders to restake their assets, earning additional rewards while contributing to the network’s security. This innovative restaking mechanism further enhances security by incentivizing liquidity providers to actively provide security services to other protocols.
How is Pell Different
vs Babylon
Similar to Pell network, Babylon aims to enhance security within the Bitcoin ecosystem while bringing yield for stakers. However, Babylon’s focus is on providing PoS services for BTC, whereas Pell Network offers a full suite of services beyond staking, including Oracles and DA.
vs EigenLayer
EigenLayer runs exclusively on Ethereum and its current services are more focused on data availability, while Pell Network’s first AVS will be Oracle. Also, due to drastic differences between Bitcoin and Ethereum layer ones, Pell Network will undoubtedly spark more novel innovation built specifically for use cases eth in the Bitcoin ecosystem.
Conclusion
Pell Network stands out as a pioneering platform that enhances the security, efficiency, and development of the Bitcoin ecosystem. By offering restaking opportunities and a wide range of validation services, it bridges the gap of security between Bitcoin layer 1 and ecosystem protocols, while lowering development costs and generating passive income for BTC asset holders.
Pell Network’s vision extends beyond staking — it aims to be the backbone of the BTC ecosystem, supporting dApps, enhancing security, and fostering liquidity. As the Bitcoin ecosystem evolves, Pell Network not only plans to support the Lightning Network, RGB++, but also cross-chain assets, from both EVM and non-EVM chains. This cross-chain compatibility will empower Pell Network to develop into a multi-chain service hub, supporting the realization of Web3 mass adoption in the near future.
