Bitlayer is a Bitcoin Layer 2 scaling solution. It's a protocol designed to enhance the scalability, speed, and efficiency of transactions on the Bitcoin network without compromising its core security principles.

Here's a breakdown of what that means and what Bitlayer does:

* Layer 2 Solution: The main Bitcoin blockchain (Layer 1) is known for its security and decentralization, but it has limited transaction throughput. A Layer 2 solution like Bitlayer operates on top of the main network, handling a large number of transactions off-chain before settling them in a single, verified transaction on the main Bitcoin blockchain. This process significantly increases transaction speed and reduces costs.

* "Bitcoin-Equivalent Security": Bitlayer's main selling point is that it aims to inherit the same level of security as the underlying Bitcoin network. It achieves this through a novel approach that combines BitVM (Bitcoin Virtual Machine) and Zero-Knowledge (ZK) Proofs. This technology allows for the verification of Layer 2 state transitions directly on the Bitcoin base layer, ensuring that the integrity of the system is tied to Bitcoin's own security.

* EVM-Compatibility: A key feature of Bitlayer is that it is compatible with the Ethereum Virtual Machine (EVM). This is a significant development because it allows developers to build and run complex smart contracts and decentralized applications (dApps) on a Bitcoin-based network. This opens up the possibility for a wide range of applications, including decentralized finance (DeFi), that were previously difficult or impossible to build on Bitcoin.

* Services and Products:

* Scaling: Bitlayer's primary function is to provide a scalable infrastructure for Bitcoin, enabling a higher volume of transactions with lower fees.

* Smart Contracts and dApps: It provides a platform for developers to create and deploy dApps and sophisticated smart contracts on top of Bitcoin.

* Cross-Chain Transactions: Bitlayer also facilitates the efficient transfer of assets between Bitcoin and other blockchain networks.