Merlin Chain

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Discover Merlin Chain's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Merlin Chain?

Merlin Chain is a Bitcoin-native Layer 2 solution that enhances the scalability and security of the Bitcoin network. It utilizes ZK-Rollup technology, decentralized oracle networks, and other advanced features to facilitate faster and more cost-effective transactions. The native token, MERL, plays a crucial role in governance, staking, and network operations, ensuring the robustness and growth of the ecosystem.

How is Merlin Chain used?

Merlin Chain (MERL) is used for several purposes within the Merlin Chain ecosystem:

  • Governance: MERL token holders have the right to vote on key proposals, shaping the future of the platform.
  • Staking: Users can stake MERL to enhance the security of the network, ensuring operational integrity and reliable performance.
  • Network Fees: MERL can be used to pay transaction fees on Merlin L3.
  • Collator Delegation: MERL token holders can delegate their tokens to a Collator or run their own Collator by staking MERL, actively participating in the network's operation.
  • Native Liquidity and Collateral: MERL is used within the ecosystem to provide liquidity and act as collateral, supporting lending mechanisms and smooth transactions.
  • Rewarding Users: MERL is used to reward users who stake their assets on Merlin’s Seal and to facilitate transactions on the platform.

These utilities contribute to the overall security and functionality of the Merlin Chain ecosystem.

How do I store Merlin Chain?

To store Merlin Chain (MERL) tokens, you can use a variety of methods:

  1. MEXC Account Wallet: After purchasing MERL on MEXC, you can store it in your MEXC Account Wallet. This wallet allows you to hold, send, trade, or stake your MERL tokens securely.

  2. Trust Wallet: Trust Wallet supports depositing and managing MERL tokens. You can select "Receive" from the home screen, search for "MERL," and follow the deposit instructions.

  3. Metamask: You can add the Merlin Chain Mainnet to Metamask and import the MERL token contract address to manage your tokens. Ensure you use official links and follow proper procedures to avoid scams.

  1. Merlin Chain Wallet: You can choose from various wallet options specifically designed for Merlin Chain to store your MERL tokens. These wallets are recommended for staking and other activities within the Merlin Chain ecosystem.

  2. Hardware Wallets: For added security, you can use hardware wallets like Ledger to store your MERL tokens offline.

Remember to always follow official links and guidelines to avoid scams and ensure the security of your tokens.

How to buy Merlin Chain?

To buy Merlin Chain (MERL) tokens, follow these steps:

  1. Choose a Crypto Exchange:

    • Select a reputable cryptocurrency exchange that supports Merlin Chain trading. Popular options include KuCoin, CoinEx, OKX, Bybit, gate.io, and MEXC.
  2. Create an Account:

    • Register on the exchange's website or mobile app, providing personal information and identity verification documents.
  3. Fund Your Account:

  • Transfer funds to your exchange account using supported payment methods like bank transfer, credit card, or debit card.
  1. Navigate to the Merlin Chain Market:

    • Search for "Merlin Chain" (MERL) in the exchange’s marketplace.
  2. Choose a Transaction Amount:

    • Enter the desired amount of Merlin Chain you wish to purchase.
  3. Place a Buy Order:

  • Decide whether to use a Market Order or a Limit Order. Market Orders execute quickly at the best available price, while Limit Orders specify a maximum price you are willing to pay.
  1. Confirm and Complete the Transaction:

    • Preview the transaction details and confirm your purchase. The Merlin Chain tokens will be deposited into your exchange wallet.
  2. Transfer to a Hardware Wallet (Recommended):

    • For security reasons, consider transferring your Merlin Chain tokens to a hardware wallet like Ledger or Trezor.
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History of Merlin Chain

Merlin Chain, a Bitcoin Layer 2 solution, has a relatively recent history. It launched its mainnet in February 2024 and has since experienced rapid growth, accumulating over $3.6 billion in total value locked (TVL) and fostering a vibrant ecosystem with more than 200 native decentralized applications (DApps).

The Merlin Chain integrates cutting-edge layer 2 technology solutions within the Bitcoin network, including zero-knowledge proof transactions, decentralized oracle networks, and fraud-proof modules. Its primary objective is to empower Bitcoin's native assets, protocols, and products on Layer 1 through its Layer 2 network, with a goal to "Make Bitcoin Fun Again".

In April 2024, Merlin Chain launched its native token, MERL, which is available for trading on several cryptocurrency exchanges, including OKX, Bitget, Hashkey Global, Gate.io, KuCoin, and ByBit. The MERL token has a total supply of 2.1 billion and is designed to empower the community through various utilities such as governance, staking, and payment of transaction fees.

The MERL token allocation includes 20% for participants of the Merlin's Seal event, 1.33% and 13.9% for private sales A and B respectively, and 16.57% and 40% for the Merlin chain community and ecosystem. The token's launch marks a significant milestone in the evolution of Merlin Chain, offering enhanced governance, security, and ecosystem development opportunities for its users.

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How Merlin Chain works

Merlin Chain is a layer-2 technology designed to enhance the scalability and efficiency of the Bitcoin ecosystem. Here's a detailed overview of how it works:

Bridging Layer-1 and Layer-2 Networks

Merlin Chain bridges the gap between the layer-1 Bitcoin network and the layer-2 network by enabling the transfer of data between the two. This is achieved by transforming Bitcoin (BTC) from the layer-1 network to MBTC in the layer-2 network, allowing users to utilize MBTC on smart contracts. This seamless interaction between the two layers enhances the overall functionality of the Bitcoin ecosystem.

Zero-Knowledge (ZK) Rollup

Merlin Chain employs ZK rollup technology, which processes transactions in the layer-2 network and records the transaction proofs in the layer-1 network. This approach ensures error-free transactions, reduces gas fees, and increases transaction speed. ZK rollup also uses ZK-proof, an encryption solution that verifies transactions without revealing the actual information, ensuring privacy, security, and scalability.

Decentralized Oracle Network (DON)

The DON is a critical component of Merlin Chain, allowing Web3 smart contracts to interact with external data sources. This network bridges the gap between on-chain and off-chain data, providing the necessary data for smart contracts to function efficiently on the Merlin Chain platform.

Fraud-Proof Mechanism

Merlin Chain incorporates an on-chain fraud-proof mechanism that re-verifies transaction proofs already verified by ZK rollup. This additional layer of verification ensures the accuracy and reliability of transaction data, further enhancing the security and accountability of the network.

MERL Token

The MERL token is the native cryptocurrency of the Merlin Chain ecosystem. It serves various purposes, including governance, staking, network fees, collator delegation, and native liquidity and collateral. The total supply of MERL tokens is 2.1 billion, with a fully diluted valuation (FDV) of $100,000.

Staking and Rewards

Users can stake their assets on Merlin’s Seal to earn MERL tokens. The staking process involves a fair launch, with rewards allocated based on the number of Merlin points earned. The staked assets can be retrieved after a scheduled release period.

EVM Compatibility

Merlin Chain is EVM-compatible, allowing users to interact with decentralized applications (dApps) on the Ethereum Virtual Machine (EVM). This compatibility enables Bitcoin-native wallets to access EVM-compatible dApps, expanding the range of applications available to Bitcoin users.

Native Innovation

Merlin Chain focuses on native innovations designed specifically for the Bitcoin network and its users. It supports various Bitcoin protocols, such as BRC20, BRC420, Bitmap, Atomicals, Pipe, and Stamp, and aims to empower Bitcoin's native assets, protocols, and products on Layer 1 through its Layer 2 network.

In summary, Merlin Chain is a revolutionary layer-2 technology that addresses the scalability issues in the Bitcoin ecosystem by leveraging ZK rollup, decentralized oracle networks, and fraud-proof mechanisms. It enhances transaction speed, reduces gas fees, and promotes innovation within the Bitcoin network while maintaining compatibility with the EVM.

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Merlin Chain's strengths

Merlin Chain (MERL) offers several key strengths:

  1. Scalability: Merlin Chain leverages ZK-Rollup technology to process transactions off-chain, significantly reducing congestion on the Bitcoin blockchain. This allows for higher throughput and lower transaction fees compared to traditional on-chain transactions.

  2. Security: By integrating ZK-proof transactions and decentralized oracles, Merlin Chain ensures transaction privacy, security, and scalability while maintaining the integrity of the Bitcoin network.

  3. Interoperability: Merlin Chain is EVM-compatible, enabling seamless integration with existing Ethereum-based projects and tools. This fosters greater collaboration and innovation within the crypto community.

  1. Cost-Efficiency: Merlin Chain optimizes transaction costs through the use of ZKPs and zkSNARKs, providing users with a cost-effective solution for conducting transactions on the Bitcoin network.

  2. Governance and Community Engagement: The MERL token allows users to participate in governance by voting on critical proposals, ensuring that the community has a significant role in shaping the future of Merlin Chain.

  3. Native Innovation: Merlin Chain supports various Bitcoin protocols and continues to innovate with native Layer2 assets, enhancing the overall ecosystem and user experience.

These strengths position Merlin Chain as a robust and efficient Layer2 solution for Bitcoin, offering significant improvements in scalability, security, and interoperability.

Merlin Chain's risks

Merlin Chain (MERL) is a Bitcoin native Layer 2 solution that aims to enhance the scalability and usability of the Bitcoin network. Despite its innovative features, MERL is not immune to risks. Here are some of the risks associated with Merlin Chain:

  1. Security Risks: Merlin Chain, like any other blockchain project, is vulnerable to security threats. These can include hacking attempts, phishing scams, and other forms of cyber attacks. For instance, a fake "Claim Your Merlin Chain ($MERL) Token" website was discovered, which aimed to drain users' cryptocurrency wallets by impersonating the real Merlin Chain platform.

  2. Volatility: Digital assets like MERL are highly speculative and subject to significant price fluctuations. Investors may lose their entire investment due to market volatility.

  3. Centralization Risks: Although Merlin Chain is designed to be decentralized, it still relies on certain centralized components, such as the Cobo MPC wallet solution. This could lead to single points of failure if these components are compromised.

  1. Regulatory Uncertainty: The regulatory environment for cryptocurrencies is still evolving and often unclear. This uncertainty can lead to legal and financial risks for investors and users of MERL.

  2. Scalability Limitations: While Merlin Chain aims to improve the scalability of the Bitcoin network, it may still face limitations in terms of transaction capacity and processing speed. If these limitations are not addressed, they could hinder the adoption and growth of MERL.

  3. Dependence on Bitcoin: As a Layer 2 solution built on top of Bitcoin, MERL's success is closely tied to the performance and stability of the Bitcoin network. Any issues with Bitcoin could negatively impact MERL.

  1. Competition: The cryptocurrency market is highly competitive, with numerous projects vying for attention and adoption. If MERL fails to differentiate itself or keep pace with competitors, it may struggle to maintain user interest and market share.

  2. Liquidity Risks: MERL's liquidity can be affected by various factors, including market conditions, trading volumes, and the availability of liquidity providers. Low liquidity can make it difficult for users to buy or sell MERL tokens quickly and at a fair price.

  3. Smart Contract Risks: Merlin Chain's use of smart contracts introduces additional risks, such as the potential for bugs, errors, or unintended behavior. These risks can lead to financial losses or security breaches if not properly addressed.

  1. Reputation Risks: Any negative publicity or security incidents involving Merlin Chain or its associated projects can damage the reputation of MERL and deter users from adopting the token.
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Did Merlin Chain raise funds?

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Merlin Chain’s team

  • Bitmap Tech: The team behind Merlin Chain, previously known as Recursiverse, is a leading OG team with a total market capitalization of over $500 million. They have developed projects like BRC-420 and Bitmap.Game before Merlin Chain.

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