As the use of Bitcoin expands and new applications emerge, it also becomes clear that its main network (Layer 1) has limitations, especially in terms of scalability. To address this challenge, Layer 2 blockchains were born, designed to improve Bitcoin's efficiency without compromising its security or decentralization.
If you are interested in understanding how these solutions work and which are the most notable projects in the Bitcoin ecosystem in 2025, this article is for you.
What is a Layer 2 in Bitcoin?
A Layer 2 is a network or technology that is built on the Bitcoin blockchain to increase its processing capacity, reduce fees, and enable advanced functions such as smart contracts.
The main idea is to offload part of the load from the main network, processing transactions outside of it and only recording the final result on the Bitcoin blockchain. Thus, security and immutability are maintained without sacrificing performance.
How do Bitcoin's Layer 2s work?
There are different strategies to scale Bitcoin using secondary layers. The most commonly used today are:
State Channels
Allow two users to transact off the blockchain, through a private channel. Only the final state is recorded on Bitcoin, reducing fees and times.Sidechains
Are independent blockchains connected to Bitcoin by a two-way bridge (two-way peg). Although they do not rely directly on Bitcoin's security, they allow for asset transfers and experimentation with new functions.Rollups
They execute transactions off the main chain, group them, and send a cryptographic summary to Bitcoin. Still in development, they promise scalability without losing security.
Advantages of Layer 2 on Bitcoin
These solutions open a new era for Bitcoin:
Greater scalability: more transactions per second and faster confirmations.
Lower fees: by operating off Layer 1.
Smart contracts: thanks to platforms like Stacks or RIF.
Greater liquidity and use cases: they boost DeFi on Bitcoin and new types of applications.
The main Layer 2 projects in 2025
Here we share the projects that are transforming the use of Bitcoin:
Lightning Network
It is the most established Layer 2. It allows almost instant payments with very low fees. Ideal for micropayments, it creates channels between users without recording each transaction on the blockchain.
With a theoretical capacity of up to 1 million transactions per second, it is key for Bitcoin to function as everyday digital money — and it is already present in payment solutions in El Salvador and businesses in Latin America.
Stacks (STX)
Allows smart contracts, NFTs, DeFi, and decentralized apps with direct backing in the security of Bitcoin. Its token STX operates within the ecosystem, and one of its recent advancements was the launch of sBTC, an asset indexed to BTC for decentralized exchanges.
Merlin Chain
Developed by Bitmap Tech, it uses ZK-Rollup technology to offer efficiency and speed. It integrates oracles and on-chain anti-fraud modules. It stands out for its compatibility with Ethereum, facilitating connection with existing dApps.
Its token MERL serves governance functions on the network.
Rootstock Infrastructure Framework (RIF)
Built on the RSK blockchain, it offers services such as payments, storage, and identity management. Compatible with Ethereum smart contracts, RIF uses the eponymous token to access its services. It is promoted by IOVLabs, with a strong presence in Latin America.
CKB Public Chain (Nervos Network)
Proposes a hybrid architecture that combines the UTXO model with PoW consensus, integrating Bitcoin's security and flexibility for dApps. The token CKB aims to position itself as a pillar of a new generation of decentralized finance on Bitcoin.
Other relevant projects
Also noteworthy are Liquid Network, designed for large transfers with privacy and federated governance; and Statechains, still in development, which aim for greater privacy and property control without the need to move funds on the blockchain.
What to expect from the future of Layer 2 on Bitcoin?
The trend is clear:
Greater technical and financial accessibility;
Integration with traditional financial systems;
More intuitive user experiences;
Shared standards among projects.
Layer 2s are transforming Bitcoin into a functional ecosystem, paving the way for DeFi, NFTs, micropayments, and more. It is no longer just a store of value: it is the foundation for a more agile and useful infrastructure.
The Bitcoin of the future is already being built
Layer 2 solutions are the bridge between the Bitcoin of yesterday — slow but secure — and the Bitcoin of tomorrow: fast, programmable, and flexible.
Projects like Lightning, Stacks, Merlin Chain, RIF, and CKB demonstrate that it is already possible to build a new economy on the solid foundation of Bitcoin. If you are in the crypto world, it is worth keeping a close eye on these initiatives and anticipating their impact on your investments and the future of decentralized finance.
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