ZetaChain's Brandon Truong: Unlocking Direct Access to Bitcoin in DeFi

Brandon Truong moved to the U.S. and attended Stanford University, where he studied symbolic systems, a highly interdisciplinary major that combines computer science, linguistics, mathematics, philosophy, psychology, and statistics.

However, he dropped out after his second year to start a social application company. After selling this company in late 2020 during the COVID-19 pandemic, Brandon considered returning to school.

“I met the founder of ZetaChain at that time, and he convinced me not to go back to school,” Brandon recalls. This led him to become the co-founder and chief product officer of ZetaChain.

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- The market is currently seeing a surge in the number of layer 1 and layer 2 blockchains. What are your thoughts on the future of these chains, and how does ZetaChain position itself among them?

Brandon Truong: I believe the market will eventually consolidate to a few prominent layer 1 and layer 2 chains—probably no more than 10. Each of these chains will serve specific functions: Bitcoin, for example, is a store of value, while Ethereum serves as the backbone for DeFi. In the next 3-5 years, ZetaChain aims to connect all these major chains.

We’re not looking to compete directly with other chains but rather to extend their capabilities. For instance, rather than competing with the Bitcoin network, we aim to bring the DeFi ecosystem to it.

With ZetaChain, developers can deploy their applications once and gain access to all the chains that ZetaChain connects to. This is particularly beneficial for games and social applications, where users only need one wallet to operate across multiple chains.

- Why did ZetaChain choose to build on the Cosmos SDK (software development kit) and Tendermint Consensus? How do you view its competition with other layer 2 stacks like the OP Stack or Arbitrum Orbit?

Brandon Truong: Many of our team members are from the original Cosmos team. However, the main reason we chose Cosmos is that the SDK and Tendermint Consensus are highly adaptable to various use cases. We didn’t need to create a new consensus layer; instead, we focused on building a layer on top of it to connect different chains.

As I mentioned, there will likely be only a few successful layer 2s, but I believe the Inter-Blockchain Communication’s (IBC) philosophy and approach are more effective. Layer 2 ecosystems like Arbitrum and Optimism can't directly connect with each other; users must return to layer 1, which results in a poor user experience.

Moreover, Cosmos provides a more flexible approach than any other chain in the IBC ecosystem. This lowers the barrier to entry; for example, if you want to create your own chain to launch a game, you can do it easily.

To sum up, if your project is compatible with IBC and integrates with ZetaChain, you can connect to almost any major chain within the ecosystem.

If your project is compatible with IBC and integrates with ZetaChain, you can connect to almost any major chain within the ecosystem

- Do you think monolithic blockchains like Solana, Sui, or Aptos, or blockchains with modular designs will dominate in the long term?

Brandon Truong: I believe there will be 5-10 dominant chains, each specializing in a specific area. Therefore, ZetaChain is leaning towards a modular approach.

For example, some chains will focus on storing value or computing power, others will handle data availability like Celestia, and some will prioritize speed while maintaining security.

Applications, such as universal apps, will be built on top of these chains to leverage their strengths. This way, users won't need to worry about which chain they are on.

- What do you think is the fundamental innovation in the current layer 1 and layer 2 blockchain infrastructure compared to the previous cycle?

Brandon Truong: The most significant improvement is probably zero-knowledge (ZK) technology, as it enables many new possibilities. However, its full impact is yet to be realized.

The IBC has been around for a while, so it's not a new innovation. Still, ZetaChain, with its IBC solution, is bringing unique benefits to the ecosystem, such as increasing interest in Bitcoin.

- ZetaChain aims to bring Bitcoin into DeFi to create new yields and value. Can you clarify the potential of this integration?

Brandon Truong: Many Bitcoin users, including people like my parents, don’t know how to make their Bitcoin profitable beyond just holding it or depositing it on some exchanges. There’s no accessible DeFi ecosystem or staking and restaking mechanisms.

But this is changing. With ZetaChain, Bitcoin holders can now earn yields simply by holding Bitcoin in a wallet or staking it into a protocol. For instance, if a Uniswap pool is deployed on ZetaChain, users can deposit Bitcoin directly into the pool and earn returns.

This effectively acts as a bridge between the Bitcoin network and ZetaChain, where the protocol uses smart contracts to manage deposited Bitcoin.

- How does ZetaChain simplify the deployment of applications on its platform?

Brandon Truong: With ZetaChain’s universal EVM, developers can deploy applications that interact with multiple chains within the same transaction.

For example, a user with a Bitcoin wallet can perform transactions without switching networks or using bridges. This allows developers to focus on building applications rather than dealing with complex infrastructure.

Currently, cross-chain messaging solutions like LayerZero or Wormhole are time-consuming and require significant resources because developers have to deploy them on every chain.

- Many projects are focusing on launching their own chains rather than building a single application. What are your thoughts on this trend?

Brandon Truong: This presents an opportunity for many, as building infrastructure can attract substantial investment. However, ZetaChain’s approach is different. We focus on user transactions, which require real applications that enhance accessibility, expand the active user base, and drive growth.

We aren't interested in projects that solely aim to boost metrics like Total Value Locked (TVL).

- What strategies does ZetaChain use to attract developers and users to its platform?

Brandon Truong: Our ZetaHub allows users to explore the ecosystem and earn points. We aim to develop it into a comprehensive program where applications built on ZetaChain have organic mechanisms to distribute rewards to users, helping projects attract sustainable users over time.

I believe that a single large airdrop is not effective—traffic may spike initially but quickly drop to zero.

- How do you view the Southeast Asian web3 market compared to the U.S.?

Brandon Truong: The Southeast Asian market is more focused on consumer applications like games and social applications, while the U.S. market leans towards building infrastructure. Some venture capital funds in the U.S do focus on consumer projects, but most research and academic work on web3 is happening here.

For a robust ecosystem, we need both consumer-focused projects and strong infrastructure development.

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