Bitlayer enhances Bitcoin’s ecosystem as a Layer 2 (L2) solution, building on Bitcoin’s Layer 1 (L1) security while addressing scalability limitations. Bitcoin L1, secured by Proof-of-Work, ensures decentralization and immutability but faces low throughput (~7 TPS) and high fees during congestion.
Bitlayer’s L2 leverages BitVM for trust-minimized smart contracts, enabling off-chain transaction processing with EVM compatibility for dApps.
- Security: Bitcoin L1 provides robust PoW security; Bitlayer L2 inherits this via trust-minimized bridges.
- Scalability: Bitlayer L2 offers faster, cheaper transactions compared to L1’s slower on-chain processing.
- Functionality: Bitlayer L2 supports interoperable dApps, unlike L1’s limited smart contract capabilities.
Advancing Bitcoin’s DeFi Potential
Bitlayer’s L2 solution scales Bitcoin’s utility, fostering DeFi innovation while preserving L1’s security.