As one of the ambitious projects in the blockchain ecosystem, the Bitlayer project, launched by , has revived new prospects for Bitcoin by providing an innovative second-layer solution based on the BitVM model. The project's focus is on enhancing scalability and smart functionalities for Bitcoin, opening the door to unprecedented possibilities in decentralized finance and smart contracts.
The essence of Bitlayer's distinction lies in being the first secure and equitable second-layer network built on BitVM. This model expands Bitcoin's main capabilities by utilizing zero-knowledge proofs (ZKP) and optimistic aggregation techniques, preserving Bitcoin's decentralization and security while doubling throughput and reducing transaction costs thanks to aggregated transactions.
The project also supports EVM (Ethereum Virtual Machine) compatibility, allowing developers to build decentralized applications using familiar tools from the Ethereum ecosystem, but with Bitcoin as the primary asset. This step enhances the concept of Bitcoin Finance (BTCFi) and drives wider integration of Bitcoin into the decentralized economy.
Interoperability and Multi-Chain Bridges
The project also focuses on enhancing interoperability through a multi-chain bridge that allows asset transfers across different blockchain networks, in addition to direct connections between centralized exchanges (CEXs) and Bitlayer wallets like Xverse. This bridge relies on cryptographic technologies that reduce the need for trust, ensuring high security and efficiency in cross-chain transactions.
Flexible Support for Virtual Machines
Bitlayer offers exceptional flexibility for developers by supporting multiple virtual machines such as CairoVM, SolVM, and MoveVM, allowing the choice of the optimal programming language and broadening the range of possible applications, whether in decentralized finance (DeFi), NFT markets, or multi-chain governance systems.
Funding Rounds and Investment Support
The project has received strong investment support; it raised $5 million in a seed round led by Framework Ventures and ABCDE Capital, with participation from notable names like StarkWare and OKX Ventures. In a Series A funding round, it successfully raised $20 million led by Polychain and Franklin Templeton, with participation from institutions like SCB Limited and Flow Traders.
High-Experience Team
The founding team includes expertise from major projects like Huobi, Polygon, and Polkadot, having previously led the Heco chain to a total value locked (TVL) of $14 billion, in addition to launching several EVM-compatible chains and ZK-Rollup solutions, reflecting their high technical efficiency.
Community Initiatives and Governance
On the community front, Bitlayer is launching stimulating initiatives such as the Booster campaign, along with collaboration with Binance Wallet to distribute BTR governance tokens. The total token supply is one billion units, which is not yet listed, but the team has confirmed its intention to synchronize its data with major platforms soon.
Technical Activity and Challenges
The project's GitHub repository shows significant activity, with ongoing development of BitVM improvements and security modules, embodying its commitment to the spirit of open source. However, it faces challenges, notably its scalability dependence on the main chain's finality, and any delays could negatively impact user experience. Additionally, the lack of clarity regarding the timeline for launching the BTR token may affect market confidence.
Future Outlook
If Bitlayer succeeds in improving bridge efficiency and expanding its partnerships within the ecosystem, it is poised to establish itself as one of the leading second-layer solutions for Bitcoin.
Overall, Bitlayer adds a new dimension of intelligence and programmability to the Bitcoin ecosystem, thanks to the BitVM model and its compatibility with multiple environments. Its partnerships with major investors and community-driven approach make its future in the BTCFi space very promising.
