As new opportunities continue to emerge in the Bitcoin ecosystem, from Ordinals, Runes to BRC20, a mainline with greater long-term potential has gradually surfaced: giving Bitcoin smart contract capabilities and supporting more application scenarios in a composable manner. In this deep-seated technological innovation, Bitlayer, with its modular design, native compatibility with Bitcoin assets, and high-security logic, is becoming one of the most representative forces in the L2 track.

What many people have yet to realize is: Bitlayer is not just a 'speedway' for BTC, but more like 'rebuilding a programmable operating system for Bitcoin', with goals far exceeding Layer 2.

1. What is Bitlayer: A technology-driven new model for BTC L2

Bitlayer is a Bitcoin Layer 2 network based on the OP Stack, using optimistic Rollup architecture while retaining the native compatibility of BTC assets. It is not a replica of EVM, but a pioneer exploring modular VM architecture and application customization capabilities within the Bitcoin system.

Technical features include:

  • OP Stack construction: Originating from the Optimism modular design framework, ensuring that developers can freely customize key modules such as Execution Layer, Settlement Layer, and Data Availability;

  • BTC native asset bridging: Natively supports BTC locking into the chain, without the need for third-party custody;

  • Modular virtual machine system: Currently supports EVM and StarkVM, with future integration of MoveVM and FuelVM to enhance flexibility;

  • Strong inter-chain communication capabilities: A stable cross-chain bridge has been built to support interactions with ecological assets like BTC and ETH.

These technical choices indicate that Bitlayer does not intend to be a 'compromised' L2 but aims to thoroughly solve the fundamental pain points that prevent the Bitcoin world from supporting complex applications.

2. Building a Bitcoin application layer ecosystem, fully open from developers to users

Bitlayer's core goal is to provide a friendly, secure, and composable development environment for developers, allowing more complex logic and innovative products to be realized on the Bitcoin chain, rather than being forced to deploy on Ethereum or Solana.

Developer ecosystem progress:

  • Over 50 projects have already been deployed or connected to testnet/mainnet;

  • Main applications include: decentralized exchanges (DEX), stablecoin protocols, DePIN networks, Bitcoin MEV tools, oracle services, etc.;

  • Clear incentive measures: Bitlayer provides ecological fund support + BTR reward mechanism to encourage rapid incubation of protocols.

Moreover, Bitlayer is actively promoting the on-chain circulation of BTC assets, including collaboration with liquidity providers to advance native BTC Wrap solutions to Layer 2, and supporting Lightning Network access. This way, BTC is no longer a 'sleeping asset', but can participate in liquidity mining, DeFi lending, staking, and other applications.

3. Under the modular narrative of BTC, Bitlayer's unique value

Modularity is becoming the mainstream trend for the next round of infrastructure. Celestia, Dymension, Movement, etc., are all searching for the best building solutions within the Ethereum ecosystem. However, for Bitcoin, Bitlayer is currently the only clear representative following the 'modular + Rollup' path.

Its unique value lies in:

  • Narrative aligns with BTC spirit: Adhering to decentralization and prioritizing security, in line with the long-term preferences of the BTC community;

  • Strong openness for developers: No mandatory use of specific VM, compatible with multiple programming languages;

  • Added Rollup security attributes: Compared to traditional BTC L2 like Stacks, RSK, it is closer to the mature logic of Ethereum L2;

  • Alignment potential with BTC mining interests: Future support may include MEV capture + fee returns to BTC miners, achieving a win-win closed loop.

This 'steady yet changing' architectural logic retains the security of BTC while also possessing the capacity to support new applications like DeFi, which may be a key piece in the next narrative of Bitcoin.

4. Tokenomics and future outlook

BTR is the native token of Bitlayer, with multiple functions including governance, incentives, and gas fee payments. According to community planning, its future application directions will include:

  • Staking and security incentives: Encouraging validators to stake to secure the network;

  • Ecological reward pool: Used to support DApp development and community operations;

  • Potential destruction mechanism: A portion of transaction fees can be used for buybacks and destruction, enhancing the deflationary attributes;

  • Governance participation: Advancing core upgrades through proposals and voting mechanisms.

As the Bitlayer mainnet ecosystem accelerates its expansion, the utility scenarios of BTR will continue to grow, and its market value will gradually be recognized.