How Does it Work?
Last updated
Last updated
At its heart, Kaon is unique because it operates natively as a Bitcoin protocol system while enabling cross-chain capabilities, start with the full Ethereum Virtual Machine (EVM). Imagine creating a bridge between Bitcoin's security model and Ethereum's programmability - but without actually using a bridge.
Kaon augments Bitcoin Node within Kaon's structure to enable subprograms, which then introduces statefulness into Bitcoin. This way, Kaon is able to introduce on-chain programmability into Bitcoin.
This is achieved by leveraging secure Multi-Party Computation (sMPC) Groups to manage BTC locks and validate transactions, a Cross-Chain Mempool to relay transactions deterministically using UTXO features, and a BFT Consensus Layer to provide validator rotation and ensure Byzantine Fault Tolerance.
The Node Interface acts as an intermediary, wrapping original nodes to trigger specific logic, receive transactions, and compose mirrored transactions essential for peg-in and peg-out processes, enabling seamless asset mirroring between Bitcoin and Kaon's Consensus Layer.
This leads to some following innovations such as:
mirrorBTC: Instead of wrapping Bitcoin, Kaon creates an exact mirror of it within its system. This means you can track precisely which Bitcoin you own - something not possible with wrapped Bitcoin solutions.
Dual Nature: Kaon nodes speak both Bitcoin and Ethereum natively. They can process Bitcoin's UTXO transactions and Ethereum's smart contracts simultaneously, with no translation layer in between.
Two-Layer Consensus:
A delegated Proof of Stake (dPoS) system manages the blockchain
A Byzantine Fault Tolerant (BFT) consensus handles cross-chain security
When a transaction enters the system, whether it's a simple Bitcoin transfer or a complex smart contract interaction, it flows through a validation process that maintains Bitcoin's security while enabling Ethereum's programmability.
This architecture means developers can build DeFi applications that interact directly with Bitcoin - not a wrapped or bridged version - while users maintain the same level of security they expect from the Bitcoin network.
