✨Architecture

Velar's architecture consists of the following key components:

Bitcoin Base Layer

This provides the underlying security and decentralization for the ecosystem. Velar leverages Bitcoin's proof of work consensus mechanism to validate transactions and secure the network.

Bitcoin Layer 2 Solutions

Velar operates on various Bitcoin Layer-2 scaling solutions to enable fast and low-cost transactions while reducing the load on the Bitcoin base layer. These Layer-2 platforms also provide smart contract functionality, allowing for the development of sophisticated DeFi applications.

Currently, Velar is live on the following Bitcoin Layer-2 solutions:

- Stacks

- Bitlayer

- BOB

As Velar progresses, the protocol aims to expand its compatibility and go live on EVM-compatible Bitcoin Layer-2 solutions. This will further enhance Velar's interoperability and accessibility, enabling developers to build DeFi applications using familiar tools and programming languages.

By leveraging multiple Bitcoin Layer-2 solutions, Velar ensures a robust and flexible infrastructure that can adapt to the evolving needs of the DeFi ecosystem while maintaining the security and decentralization benefits of the Bitcoin base layer.

DeFi Applications

The DeFi products like decentralized exchanges, lending protocols etc. are built on top of the Stacks layer. This is where the end-user DeFi services reside.

Decentralized Identity

Velar will integrate decentralized identity solutions to enable users to manage identities without relying on centralized authorities.

Interoperability

The protocol is designed for interoperability between various crypto assets. This increases liquidity and enhances usability for end users.