The Rise of BTC Layer 2 Network

The rise of the BTC Layer 2 network marks an important evolution of the blockchain ecosystem. These solutions are designed to leverage the strong security and Decentralization features of BTC, while achieving widespread adoption and enhanced functionality. The development of the BTC Layer 2 network in conjunction with the meta protocol represents a promising path to unlock the enormous intrinsic value of BTC.

Satoshi's Upgrade in Stacks

Stacks launched the Satoshi Nakamoto upgrade in August, introducing functions such as sBTC. This makes Stacks a more pure BTC layer 2 solution, by more comprehensively utilizing BTC's security, economic model, and Decentralization features.

BOB and Botanix adopt EVM

BOB and Botanix both use EVM to create and execute Smart Contracts, ensuring compatibility with existing tools and infrastructure on the ETH network. BOB has been launched on Mainnet, and BotanixMainnet is expected to launch in September.

Trust Assumptions of BTC Layer 2 Network

BTC second-layer projects follow different frameworks, with different trust assumptions, the main structures include sidechains, state channels, ZK rollups or optimistic rollups. Each framework has its trust assumptions and limitations.

The Rise of Decentralized Finance on the BTC Layer 2 Network

Although the development of the BTC second layer network has enabled the prosperity of Decentralized Finance applications on BTC, its rise is still limited. In comparison, more mature ecosystems such as Ethereum are more advanced.

Opportunities for BTC Layer 2 Network

Considering the potential value stored in BTC exceeds $1 trillion, leading BTC Layer 2 networks have huge market opportunities to unlock this value for various financial use cases.

New project joins Bitcoin's Layer 2 network

In recent years, dozens of new projects such as BOB, Bitlayer, CoreDAO, Babylon, etc. have joined the narrative of the "Bitcoin Second Season", together with existing pioneers, driving the development of this field.

The ultimate goal of the BTC Layer 2 network

The ultimate goal of these projects is to enable open and permissionless applications to utilize the BTC value of holders in a trust-minimized way, without worrying about cross-chain interaction risks or second-layer network loss of BTC.