#Bitlayer. The ecosystem of decentralized finance (DeFi) Bitcoin, known as BTCFi, is growing despite the absence of native smart contract features in the Bitcoin blockchain. A whole range of technologies is being used to work around this limitation, providing DeFi and other decentralized solutions to the Bitcoin ecosystem. One of the key ways to activate such functionality for the Bitcoin environment is through the use of computational engines or virtual machines (VMs) that can execute smart contracts. Additionally, some layer 2 platforms are also used to power decentralized applications (DApps) on Bitcoin.

Bitlayer is a decentralized platform that has embraced both of these approaches — utilizing relevant smart functions of VMs and layer 2 processing — to provide DApp functionality in the Bitcoin blockchain. Based on the completed BitVM model of Bitcoin with a labor-intensive off-chain transaction processing mechanism, Bitlayer is an incredible new mechanism for transforming Bitcoin into a powerful DApp. Moreover, Bitlayer's features support multiple VMs, including the extremely popular Ethereum Virtual Machine (EVM).

Thanks to Bitlayer, complex smart contracts and intricate BTCFi applications are no longer a rarity in the ecosystem.