How Hemi Compares to Existing Solutions

Hemi is scalable and secure. Not all approaches to this are created equal.

TL;DR:

• State channels, sidechains, and rollups are common scaling solutions for Bitcoin.
• Hemi’s approach improves on these approaches by inheriting Bitcoin-level security and replacing vulnerable bridge designs.

Hemi will help Bitcoin scale.

The Bitcoin network was designed to handle about six transactions per second. As the network grows in popularity—and as new assets such as BRC-20s emerge—its throughput must expand to meet demand.

Bitcoin scaling solutions typically address this by computing transactions off-chain. By creating their own execution layers, they can also offer capabilities (e.g., smart contracts) that aren’t built into the Bitcoin network.

Hemi vs. BTC Scaling

Here are the most common approaches to Bitcoin scalability:

• State channels work like opening a tab at the bar. Two parties transact off-chain and only settle up on the Bitcoin blockchain when the channel closes. By relaying final numbers rather than every transaction, state channels lower network congestion.
• Sidechains are independent chains that allow users to transfer Bitcoin assets to their network using token bridges. Because the execution environment is different, sidechains enable smart contract applications that aren’t possible on Bitcoin.
• Rollups batch thousands of individual transactions together which are stored on Bitcoin in a compressed format, but move the execution of these transactions to a separate layer which also permits use cases not possible on Bitcoin.

Hemi pulls from the latter two approaches.

Similar to rollups, network nodes construct blocks consisting of three types of transactions: those submitted on Ethereum, those submitted on Bitcoin, and those submitted directly to Hemi for sequencing. As Hemi sequencers create and process blocks containing a mix of these types of transactions, Hemi PoP miners publish consensus information about the contents and results of processing these transactions to Bitcoin, which allows Hemi to inherit Bitcoin-level security.

An Evolution In Bridges

Hemi also represents an evolution in bridges. Hemi’s Bitcoin Tunnels for moving Bitcoin assets improves on shaky bridge security due to its trust minimization. Moreover, with Hemi’s multi-chain connectivity, the network serves as the connective tissue between Bitcoin and Ethereum, allowing assets from Bitcoin to be tunneled through Hemi and out into the broader Ethereum ecosystem.

Combining Bitcoin and Ethereum is crucial for several reasons. Most importantly, it combines the strengths of both networks. Bitcoin is renowned for its strong security and decentralized nature, while Ethereum is celebrated for its smart contract capabilities and vibrant ecosystem. By connecting these two, users and developers can leverage the best of both protocols in a way that has thus far been impossible.

Hemi’s connection point is a great place to be because it maintains constant awareness of Bitcoin’s state without any need for third parties. This allows developers to build decentralized apps on Hemi that fully leverage Bitcoin’s security while also working seamlessly with Bitcoin-based and Ethereum-based assets together. This facilitates innovative financial products, enhances liquidity, and fosters a more interconnected blockchain ecosystem.

In fact, tunneling enhances the utility of Bitcoin. Traditionally, Bitcoin has been seen primarily as a store of value. However, by enabling secure programmability, Bitcoin can be used in a broader range of applications.

To learn more about scaling on Hemi, read the whitepaper and the relevant documentation or stop by the team’s Discord. 

Learn More

Website: hemifinance.com

GitHub: github.com/HemiLabs

Referral Program: https://points.absinthe.network/hemi/start

Discord: discord.gg/hemixyz

Twitter/X: x.com/hemi_xyz