⚠️ II. The 'Advantages' of Bitlayer Are Actually Risk Catalysts

Although Bitlayer claims to build BTCFi infrastructure, its technical path fundamentally conflicts with Bitcoin philosophy:

  1. BitVM Bridge: Trust Minimization ≠ No Trust

    • Relying on external validators to challenge invalid transactions effectively introduces new centralized nodes (mining pool partners like Antpool can audit transactions);

    • Historical Lessons: 98% of cross-chain bridge hacking events in 2024 occurred due to vulnerabilities in the challenge mechanism (CertiK report).

  2. YBTC: Reinventing Centralized Risks

    • 1:1 pegging to BTC but detached from the Bitcoin mainnet is equivalent to an unregulated bank with partial reserves (reference to UST collapse);

    • Lack of on-chain reserve audits, endorsements from institutions like Franklin Templeton instead imply compliance minefields (SEC may regard pegged tokens as securities).

  3. Performance Upgrades: A False Proposition Sacrificing Security

    • An EVM engine with 10ms latency relies on high-performance node clusters, deviating from Bitcoin's full node equality principle;

    • The total TVL of Bitcoin L2 is less than 0.3% of Bitcoin's market cap (DefiLlama), proving that the market votes with its feet.

What is the essence of Layer 2, and does BTC have these demands in this market? @BitlayerLabs #Bitlayer