Bitcoin is being merged with a once-unlikely technology – and we don’t just mean DeFi.
Mode, an Ethereum L2 built at the transformative edge of the AI Agent economy, now plans to plug into Bitcoin using the BitcoinOS Grail bridge, and to possibly become a hybrid rollup atop both Ethereum and Bitcoin.
Using breakthrough zero-knowledge proof (ZKP) technology from BOS, Grail will allow trustless and permissionless asset transfers between both ecosystems. With Mode, the world’s largest digital asset has unlocked a portal into the Ethereum universe, and the superpowers of a blockchain economy aided by artificial intelligence.
Bitcoin: The Currency of Humanity – And Robots
Bitcoin ETFs have quickly made BTC the digital asset of choice for institutions. Meanwhile, with strategic Bitcoin reserve legislation proliferating across the globe, BTC also appears preferred by governments.
With AI becoming more central to our lives, there’s good reason to think the robots will pick bitcoin, too. As once argued by BitMEX co-founder Arthur Hayes, AI will prefer a currency that is “available at all times, digital, and completely automated,” which the traditional banking system cannot provide. It will also desire money that is censorship-resistant – irrespective of human laws – and that does not bleed value over time through money printing and debasement.
In all of these respects, bitcoin fits the bill. That’s why finding ways for the asset to interact with more advanced AI systems may bring it a surprising new source of demand.
That said, bitcoin does not maintain its censorship-resistant, robust, or fixed supply qualities without cryptographic security. In the past, allowing Bitcoin to communicate and move assets with other blockchains required trusted intermediaries that reintroduced the weaknesses of the balkanized and centralized banking system.
Yet with Grail, powered by BitcoinOS, ZKPs restore integrity to bitcoin scaling by ensuring BTC circulating on L2 chains is protected by a robust, decentralized operator set that’s virtually impossible to take down. To begin, Mode’s integration with Grail will incorporate Mode’s sequencer to handle bridging processes. It will later deploy the BitcoinOS powered bridge on testnet, fine-tuning the system over several weeks before a full mainnet deployment.
With this innovation, BTC can safely extend and flow into the Mode ecosystem, where the magic of AiFi begins.
Mode’s Vision For AI-Powered Finance
Built on the Ethereum OP Stack, Mode stands out from other L2s with its focus on using AI agents to automate several tasks in DeFi, such as MEV searching, arbitrage, deploying liquidity farming strategies, rebalancing, and complete DeFi management. With time, these agents could potentially optimize yields and liquidity while evolving the blockchain world into one well-populated by autonomous AI, saving us time with little to no human oversight.
Mode currently boasts over $550million in TVL across Ionic protocol, Avalon Finance, and other applications. It plans to deploy three AI agents for managing stablecoins, ETH, and BTC, all supported by its ecosystem’s broader DeFi suite. With a trustless bridge to Bitcoin’s $1.8 trillion ocean of liquidity now in the works with BitcoinOS, that asset base could soon grow much larger.
Having implemented Optimism’s Bedrock upgrade, Mode’s transaction fees are now 95% less than the Ethereum network’s, making it a scalable system ready to support Bitcoin AiFi.
Following the initial Grail integration, Mode also has the option to use ZK technology from BOS to transform into a ‘hybrid rollup’ atop both Ethereum and Bitcoin. Under this model, the role of Mode’s sequencer would be minimized, and the role of Bitcoin’s proof-of-work security would be maximized.
With BitcoinOS, Mode not only sits at the cutting edge of AI and blockchain innovations, but in the front-row seat of Bitcoin’s transformation into an interconnected smart contract settlement layer for the world. Mode is now one more member of Bitcoin’s solar system – and a unique connection into the vast universe of Ethereum DeFi.
BitcoinOS welcomes Mode to the BOS family. 🟡🤝🟠
Visit BitcoinOS on X and YouTube for the latest on Bitcoin’s new unlocks, and join the Discord to get to know the community. See the website to register for the $BOS token presale.
Also make sure to follow Mode on X, and see its community Telegram groups.
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