Bitlayer Labs (@BitlayerLabs ) is the first Bitcoin Layer 2 solution built on the BitVM paradigm, dedicated to enhancing its scalability, speed, and efficiency while maintaining Bitcoin's security and decentralization characteristics. Its core advantages are as follows:
Core advantage analysis
• Layer 2 networks with security comparable to Bitcoin: Bitlayer builds Layer 2 (L2) networks using the BitVM paradigm, achieving security equivalent to Bitcoin without introducing new trust assumptions. Its recursive verification protocol allows continuous L2 state transitions to be verifiably settled on the Bitcoin mainnet, utilizing Bitcoin's proof-of-work mechanism to ensure final security, enabling trustless asset transfers and state validity, and addressing the limitations of other L2 solutions.
• Turing-complete execution layer: Bitlayer's modular, Turing-complete execution engine supports complex smart contracts through multiple virtual machines (EVM, SolVM, MoveVM, and XVM). This enables developers to build complex decentralized applications (dApps) such as DeFi and games, achieving sub-second soft finality, which is extremely responsive for real-time applications. Its EVM compatibility also allows seamless migration of Ethereum ecosystem applications.
• High scalability and cost-effectiveness: By transferring transactions from the Bitcoin main chain to Layer 2, Bitlayer reduces congestion on the main chain, enabling instant, low-cost transactions (fees can be paid in BTC or USDC). Its optimistic rollup model (OPVM) defaults to transaction validity when there are no challenges, optimizing resource usage and scalability. The Data Availability Committee (DAC) ensures transparency, prevents data withholding, and enhances network integrity.
• Trustless cross-chain bridge: Bitlayer's BitVM bridge integrates with rollup protocols to achieve secure, trust-minimized asset transfers between Bitcoin and other blockchains (such as Solana and Avalanche). Collaborations with platforms like Xverse and Kamino Finance allow assets to be directly bridged from centralized exchanges to Bitlayer wallets, enhancing the interoperability and liquidity of Bitcoin DeFi (BTCFi).
• Strong financial backing and ecosystem growth: Bitlayer raised $25 million in three rounds of funding, including $5 million in the seed round (led by Framework Ventures and ABCDE Capital) and $20 million in Series A (with participation from Polychain and Franklin Templeton), with a $300 million valuation reflecting strong investor confidence. Collaborations with Binance Wallet, Xverse, and Kamino Finance have expanded the BTCFi ecosystem, and DApp centers and airdrop activities have also driven user adoption.
• Active community and developer participation: Bitlayer's Booster activities (such as the third phase in collaboration with Binance Wallet, offering $5.15 million in $BTR) and CreatorPad Mindshare activities incentivize user participation and content creation. With 40 open-source GitHub repositories (including bitlayer-l2 and BitVM) and comprehensive developer documentation, it has fostered an active developer community. The Discord community of 3,471 members and active interactions on platform X further extend its influence.
• Innovative token economy and market potential: The total supply of BTR tokens is 1 billion, with 2% reserved for pre-allocation before the TGE on Binance Wallet. During the pre-TGE activity on August 13, 2025, 20 million BTR were sold at a price of $0.02 through Binance Wallet, indicating strong market interest. Although it has not yet been listed on mainstream exchanges, the OTC trades of $BTR on platforms like Unich show increasing liquidity. The content on platform X highlights its role in unlocking yield strategies for Bitcoin holders (such as YBTC.B on Solana and Avalanche).
Long-term development prospects
Bitlayer addresses Bitcoin's core scalability and programmability issues, empowering the BTCFi ecosystem and supporting DeFi applications such as lending, decentralized exchanges, and micropayments. The BitVM-based architecture ensures Bitcoin-level security while supporting Turing-complete smart contracts, marking a significant breakthrough in Bitcoin's practicality. Strategic partnerships with Binance and Kamino Finance, combined with $25 million in funding, position it as a leader in Bitcoin Layer 2 solutions.
The community's feedback is positive, believing it unlocks Bitcoin's full potential. With its modular design, multi-VM support, and emphasis on interoperability, Bitlayer is expected to drive widespread use of Bitcoin in the Web3 space.
Differences from other projects
• Compared to WalletConnect: Bitlayer provides Bitcoin L2 infrastructure, while WalletConnect focuses on cross-chain wallet connectivity. Bitlayer's bridging functionality complements WalletConnect's role in decentralized application interactions.
• Compared to BounceBit: Both focus on Bitcoin re-staking, but Bitlayer, based on the security of BitVM and multi-VM support, offers broader programmability than BounceBit's CeDeFi model.
• Compared to TreehouseFi: Bitlayer focuses on scalability, unlike TreehouseFi's fixed-income DeFi solutions, but both enhance the practical value of assets.
• Compared to Succinct Labs: Bitlayer focuses on Bitcoin-specific Layer 2, differing from Succinct's multi-chain ZK co-processing; however, both utilize zero-knowledge proof technology to enhance blockchain performance.
