Merlin Chain (MERL)

Scalability and Efficiency

Merlin Chain uses ZK-Rollup technology to make Bitcoin transactions faster and cheaper by bundling many transactions together. This helps reduce congestion and lowers fees on the Bitcoin network.

Security and Fraud Prevention

It includes on-chain BTC fraud-proof modules that allow users to challenge and verify transactions using Bitcoin’s consensus, helping to keep the network secure and trustworthy.

Interoperability and Ecosystem Growth

Merlin Chain supports popular Bitcoin protocols like BRC20, BRC420, Bitmap, and more, enabling a wider range of users and developers to build and interact with Bitcoin Layer 2 applications. It also partners with other networks like Tron to enable cross-chain asset transfers.

Native Token Use (MERL)

The MERL token is used for transaction fees, staking to secure the network, voting in governance, and serving as liquidity and collateral within the Merlin ecosystem.

Developer and User Benefits

Merlin Chain offers an EVM-compatible environment, allowing developers to create smart contracts and decentralized apps (dApps) that interact with Bitcoin assets efficiently and cost-effectively.

Pros

• Scalability and Speed: Merlin Chain uses ZK-Rollup technology to speed up transactions with an average block time of about 1.2 seconds, much faster than Bitcoin’s 10-minute block time.
• Low Fees: It offers low transaction costs compared to Bitcoin’s mainnet.
• EVM Compatibility: Supports Ethereum Virtual Machine (EVM), allowing developers to deploy Ethereum-based apps on Bitcoin Layer 2.
• Supports Bitcoin Protocols: Compatible with popular Bitcoin protocols like BRC20, BRC420, Bitmap, Atomicals, Pipe, and Stamp.
• Decentralized Oracle Network: Uses decentralized oracles and fraud proofs to enhance security and data integrity.
• Strong Ecosystem Support: Has a $210 million ecosystem grant program to encourage innovation and development.
• High Liquidity and Trading Volume: Available on many major exchanges with significant daily trading volume.

Cons

• Recent Price Volatility: The token price has experienced notable declines recently, showing some market instability.
• Complexity for Bitcoin Users: Native Bitcoin wallets cannot directly interact with EVM-compatible dApps without additional tools like BTC Connect.
• Market Influence by Whales: Large holders can significantly impact price movements due to the relatively small market size.
• New and Evolving: As a newer Layer 2 solution (launched in 2024), it may still face growing pains and adoption challenges.
• Limited Awareness: Compared to more established Layer 2 solutions, Merlin Chain is still building its user base and developer community.

For more details, visit Merlin Chain official website.

Founders

Merlin Chain was founded by Jeff Yin, who is also the CEO. He is a serial entrepreneur and recognized as the youngest recipient of Forbes 30 Under 30. Jeff has a strong background in the Bitcoin ecosystem and Web2 entrepreneurship.

Team Background

Jeff and his team previously developed projects like Bitmap and BRC-420, which are well-known in the Bitcoin community. Merlin Chain is a product line of Bitmap Tech, a company deeply involved in Bitcoin Layer 2 solutions.

Leadership Highlights

Jeff has secured funding from top venture capital firms such as Sequoia Capital, IDG Capital, and BAI Capital, helping Merlin Chain grow rapidly in the Bitcoin Layer 2 space.

Key Investors

Merlin Chain has attracted over 20 investment institutions. Major investors include OKX Ventures, Spartan Group, Hailstone Labs, ABCDE, Foresight Ventures, ArkStream Capital, Amber Group, Presto Labs, and IOBC Capital.

Strategic Partnerships

The project has partnerships with Tron Network and OKX Wallet, helping expand its user base and improve integration with Bitcoin.

Funding Rounds

Merlin Chain has completed at least two funding rounds, including a seed round in April 2024 co-led by Spartan Group and Hailstone Labs.

Investor Profile

The investors are a mix of venture capital firms, blockchain-focused funds, and major mining pools like viaBTC, supporting both technological growth and ecosystem security.

Halal Status of Merlin Chain

• Yes: Merlin Chain is a Layer 2 blockchain solution built on Bitcoin, focusing on scalability and efficiency without involving interest (riba) or gambling (maysir), which are typically concerns in halal assessments.
• Reason: It operates as a technology platform supporting Bitcoin protocols and does not inherently engage in activities forbidden by Islamic finance principles. However, final halal certification depends on individual interpretation and use cases.