itcoin is the oldest and most secure cryptocurrency, but it also faces challenges in terms of scalability and privacy. The Bitcoin network can only process a limited number of transactions per second, and each transaction is publicly visible on the blockchain. To overcome these limitations, various Layer 2 solutions have been proposed, such as sidechains, payment channels, and rollups.
In this article, we will introduce some of the most promising and innovative Bitcoin L2 (ZK & optimistic) rollup projects to watch in 2024. These projects aim to leverage the power of Bitcoin as the ultimate store of value and settlement layer, while enabling new use cases and functionalities on top of it.
Bitfinity
Bitfinity is a cutting-edge platform that allows you to deploy smart contracts for Bitcoin, Ordinals, and BRC-20 tokens - all written in Solidity. Built on the Internet Computer, Bitfinity offers a secure and efficient way to interact with the Bitcoin blockchain. With its unique Chain-Key cryptographic scheme, Bitfinity ensures a secure decentralized bridge between Bitfinity and the Bitcoin blockchain.
Conflux
Conflux is a Layer-1 blockchain that is compatible with Bitcoin and Ethereum. Conflux uses a novel consensus algorithm called Tree-Graph, which allows for high throughput and low latency without sacrificing security or decentralization.
Conflux also supports ZK rollups and optimistic rollups, which can further enhance the scalability and privacy of Bitcoin transactions. Conflux Network has recently introduced an EVM-compatible Bitcoin Layer 2 solution, which is set to launch its Testnet in February-March 2024 and the mainnet in May 2024.
This Layer 2 solution will use BTC for transaction fees and support both BRC-20 tokens and Bitcoin inscriptions, expanding the utility of the Conflux Network. Conflux has a native token called CFX, which is used for gas fees, staking, and governance.
LumiBit
LumiBit is a project that aims to provide an efficient and pure Bitcoin Layer 2 (L2) solution. The project is founded by Ethan WinterByte, who has experience in the crypto space and has built two 1 million+ user projects on Arbi and zkSync. LumiBit is focused on improving the efficiency and scalability of Bitcoin transactions through Layer 2 solutions.
In addition to its work on Bitcoin L2, LumiBit is also collaborating with Polyhedra to enhance blockchain interoperability and facilitate seamless cross-chain transactions. Lumibit also has a native token called LUMI, which is used for paying fees, rewarding validators, and incentivizing liquidity.
Stacks
Stacks, previously known as Blockstack, is a groundbreaking platform that brings the power of smart contracts and decentralized applications (dApps) to the Bitcoin network. Unlike other blockchain projects, Stacks does not modify the original Bitcoin blockchain. Instead, it extends its capabilities, allowing developers to create innovative solutions while leveraging the security and reliability of Bitcoin's robust network.
With the introduction of Stacks 2.0, the platform has introduced staking and decentralized finance (DeFi) capabilities, attracting a growing number of users and developers. The native token of the Stacks ecosystem, STX, has gained significant traction, and numerous dApps built on the Stacks platform further demonstrate the expanding ecosystem. STX is currently trading at $1.45 as of January 20, 2024.
The Stacks ecosystem has surpassed a TVL of $44.5 million and the market cap of STX has exceeded $2 billion.
Ligo
LIGO Network is a layer-2 scaling solution for Bitcoin. It allows developers to migrate Ethereum smart contracts to the Bitcoin blockchain, improving scalability and efficiency. By leveraging the Ethereum Virtual Machine (EVM), LIGO enables faster and cheaper transactions on Bitcoin. It enhances security and fosters innovation in the Bitcoin ecosystem.
SatoshiVM
SatoshiVM is a decentralized Bitcoin ZK Rollup Layer 2 solution that is compatible with the Ethereum Virtual Machine (EVM) ecosystem, using native BTC as gas. It aims to bridge the gap between the Bitcoin and Ethereum networks, enabling the Bitcoin ecosystem to issue assets and develop applications.
SatoshiVM also has a native token called SAVM, which is used within the SatoshiVM ecosystem for various purposes, such as executing transactions and interacting with dApps.
BVM
The Bitcoin Virtual Machine (BVM) is a blockchain project that was previously known as the Trustless Computer protocol. It is the first modular Bitcoin L2 metaprotocol, allowing anyone to launch their own Bitcoin L2 blockchain with a few clicks, by plugging and playing the best-of-breed blockchain modules. It is a state machine similar to Ethereum-VM, and it aims to improve the capability of Bitcoin-based smart contracts by providing a more efficient and secure environment for executing them.
Build on Bitcoin (BOB)
BOB, short for "Build on Bitcoin," is a layer 2 platform that facilitates innovation and development on the Bitcoin network. It combines the security and stability of Bitcoin with the flexibility offered by the EVM and OP stack. BOB actively supports various components of the Bitcoin ecosystem, including Ordinals, Lightning, and Nostr. It achieves this through cross-chain light clients, a versatile Bitcoin smart contract SDK, and the RiscZero zkVM.
The primary objective of BOB is to establish a Bitcoin rollup ecosystem that fosters innovation and experimentation without relying on Bitcoin forks. By leveraging BOB, a diverse range of innovators can explore and utilize features such as ordinals, ZK, SocialFi, and DAOs.
These innovations aim to enhance people's lives by providing them with greater accessibility to Bitcoin and its associated values.
Mintlayer
Mintlayer is a layer 2 solution and sidechain for Bitcoin that aims to bring more expressivity to Bitcoin by allowing Bitcoin holders to access DeFi, stablecoins, NFTs, and other tokenized assets while fully inheriting the entire security of Bitcoin's proof-of-work.
Mintlayer uses a different consensus mechanism compared to the main chain, which is based on Proof-of-Stake (PoS), and integrates with the Lightning network to enable Lightning swaps, which can be used for decentralized exchange (DEX) swaps to provide a higher degree of privacy. Mintlayer has a native token called ML, which is primarily used to participate in the network's PoS consensus mechanism, governance, and to pay transaction fees.
BRC-20 DEX
BRC-20 Dex is a decentralized exchange built on the Brc-20 protocol that offers a secure and direct approach for trading Brc-20 tokens. As a non-ZK rollup solution, BRC-20 DEX aims to provide a secure and seamless trading experience while ensuring user autonomy in each transaction and allowing individuals to take full control of their assets.
These are some of the most promising Bitcoin L2 (ZK & optimistic) rollup projects to watch in 2024. They offer various benefits such as faster transactions, lower costs, higher privacy, and more functionality, all while leveraging the security and network effect of Bitcoin.
It is important to do your own research and due diligence before investing in any of these projects. Remember, this is not financial advice and you should always consult a professional before making any financial decisions.
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