Merlin Chain is transitioning from a Bitcoin sidechain to a Bitcoin ZK Layer2 solution to tackle issues like data availability (DA) and smart contract capabilities on Bitcoin. By integrating solutions from projects like RGB++ and zkVM, Merlin Chain aims to enhance its technical framework.

Key upgrades include partnering with BTCOS for improved cross-chain bridges and verifiable L2 data, and collaborating with Nubit for better DA capabilities. The goal is to create a decentralized, transparent, and EVM-compatible Bitcoin Layer2 network, bringing scalability and innovation to the Bitcoin ecosystem.

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