Bitcoin ecosystem rises, L2 projects become new focus

Recently, with the explosive popularity of the inscription concept, the Bitcoin network is facing unprecedented challenges. Issues such as network congestion and soaring transaction fees are becoming increasingly prominent, prompting discussions within the industry about the future development direction of Bitcoin. Against this backdrop, the trend of Bitcoin's L2 transformation seems inevitable. What is the current development trend of the Bitcoin L2 sector, and which early projects are worth paying attention to?

The trend of L2 in Bitcoin

The inscription craze has brought participation opportunities for ordinary users, but it has also placed immense pressure on the Bitcoin network. A large number of small transactions have flooded in, causing the memory pool to remain consistently full, and the network congestion problem has become increasingly severe. Data shows that since February of this year, inscriptions have been the main consumers of Bitcoin block space.

This situation has raised doubts about inscription trading. Some believe that these small transactions are actually a waste of network resources and will impose a huge burden on the Bitcoin network in the long run.

In this context, the advantages of the Bitcoin L2 track are gradually becoming prominent. L2 solutions can not only alleviate network congestion issues but also create more application scenarios for the Bitcoin ecosystem by introducing smart contract functionalities, such as Swap, lending, and liquidity mining.

Bitcoin L2 Project Overview

Stacks: Bitcoin smart contract layer

Stacks, as a second-layer solution for Bitcoin, introduces Ethereum-like smart contract functionality while remaining anchored to the Bitcoin blockchain. It opens up possibilities for applications such as DeFi and NFTs within the Bitcoin ecosystem.

However, Stacks also faces some challenges. It uses STX as gas fees instead of directly using BTC, which may affect miners' willingness to participate. In addition, its user activity still has a significant gap compared to mainstream Ethereum L2 projects.

RSK: A general smart contract platform based on Bitcoin

RSK is a smart contract platform secured by the Bitcoin network that supports the migration of Ethereum applications to the Bitcoin ecosystem. Its uniqueness lies in the adoption of a merged mining mechanism, allowing miners to mine both Bitcoin and the RSK blockchain simultaneously, increasing their profits.

The transaction processing speed and efficiency of RSK are superior to that of the Bitcoin mainnet. However, it is worth noting that RSK uses smartBTC (RBTC) as a bridging token, which may pose certain smart contract security risks.

BitVM: A New Attempt at Bitcoin Smart Contracts

BitVM aims to achieve Turing complete contracts on Bitcoin without changing the operation codes. It attempts to implement smart contract functionality through innovative designs, such as Bit Commitments and logic gate verification, without increasing the burden on the Bitcoin network.

However, BitVM is still in the theoretical stage, and its practical applications and functions remain to be validated.

BEVM: A decentralized Bitcoin L2 solution

BEVM is an EVM-compatible Bitcoin L2 network that uses BTC as Gas. It achieves secure transfer and use of BTC on L2 through an innovative cross-chain mechanism. The design of BEVM allows Ethereum DApp developers to migrate directly to the Bitcoin ecosystem, bringing more application possibilities to Bitcoin.

MAP Protocol: Cross-chain interoperable Bitcoin L2 network

MAP Protocol is committed to achieving peer-to-peer cross-chain interoperability, allowing assets from other public chains to interact seamlessly with the Bitcoin network. It also supports BRC20 cross-chain and offers lower Gas fees than mainstream platforms, providing users with more economical trading options.

Conclusion

The Bitcoin L2 track is welcoming new development opportunities. With the emergence of more innovative solutions, this field is expected to nurture giant projects similar to the Ethereum L2 ecosystem. For investors and developers, the Bitcoin L2 track is still in its early stages, containing enormous potential and opportunities, making it worthy of long-term attention.