Abstract. In this article we present a new strategy of addressing the (variable coefficient) thin obstacle problem. Our approach is based on a (variable coefficient) Carleman estimate. This yields semi-continuity of the vanishing order, lower and uniform upper growth bounds of solutions and sufficient compactness properties in order to carry out a blow-up procedure. Moreover, the Carleman estimate implies the existence of homogeneous blow-up limits along certain sequences and ultimately leads to an almost optimal regularity statement. As it is a very robust tool, it allows us to consider the problem in the setting of Sobolev metrics, i.e. the coefficients are only W 1,p regular for some p > n + 1. These results provide the basis for our further analysis of the free boundary, the optimal (C 1,1/2 -) regularity of solutions and a first order asymptotic expansion of solutions at the regular free boundary which is carried out in a follow-up article, [KRS15], in the framework of W 1,p , p > 2(n + 1), regular coefficients.