Everything you need to know about Bitcoin Layer-2: The most important projects in 2025
What does Bitcoin Layer-2 mean? ⚙️
Bitcoin Layer-2 (or L2) are protocols built on top of the Bitcoin network (Layer-1), with the main goal of overcoming existing technical limitations, such as slow transaction confirmations and high costs. These solutions enable effective and fast transactions without burdening the main Bitcoin chain with all its details.
How do Layer-2 solutions work? 🔁
These solutions rely on off-chain processing, meaning that operations are executed outside the main network, with only the final results recorded on it.
Core operating mechanisms:
Channels (State Channels): Opened before transactions and closed upon completion, similar to the Lightning protocol.
Sidechains: They have an independent blockchain that is linked to the original chain via a bridge, like RSK and Stacks.
Rollups: Aggregate multiple transactions and settle on the original chain in one batch.
Benefits of Layer-2 solutions for Bitcoin 💡
🚀 Better performance and speed
Jumping from about 7 transactions per second on the main chain to thousands—sometimes millions—thanks to Lightning capabilities.
💸 Lower fees
Transaction costs are significantly lower when transactions are off-chain, especially for small transactions (micropayments).
🧩 Support for Smart Contracts
Some L2s provide support for interoperable smart programs, such as Stacks (using Clarity language) and Rootstock (EVM-compatible).
🔐 Enhanced security
Despite executing transactions off-chain, security remains reliant on Bitcoin, as final closure and confirmation occur on the original chain.
The most important Bitcoin Layer-2 projects in 2025 🔍
a. Lightning Network
Description: A popular protocol for instant payments processing between two parties via channels, where not every transaction is directly recorded on the chain.
Launch: Proposed in 2015, officially began operation in 2018.
Benefits: Access to thousands of transactions per second, very low fees, support for instant and international payments.
b. Stacks Project $STX
STX
0.653
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Description: An independent Layer-2 chain using a Proof-of-Transfer (PoX) mechanism to link its security to the Bitcoin chain. It uses the Clarity language for smart programs and DeFi and NFT applications.
History: Launched as Blockstack (2013), then rebranded to Stacks in 2020 and pushed to mainnet in 2021.
c. Merlin Chain
Description: EVM-compatible Layer-2 roll-up, supports BRC-20 and BRC-420 protocols, uses modern technology like zk-rollups and oracles to ensure security and speed.
Launch: February 2024 as one of the prominent emerging projects.
d. Rootstock (RIF) project
Description: An open-source framework via Sidechain with support for DeFi and dApps, relying on Bitcoin's security through merged mining and the PowPeg mechanism to bridge between the two networks.
History: Launched in 2018 as the first Sidechain for Bitcoin.
e. Nervos Network (CKB chain)
Description: A multi-layer system chain that includes storage logic on layer one and runtime to go to layer two, known as CKB, supporting smart contracts and decentralized applications.
Launch: November 2019 with an active and reliable community.
How to choose a suitable Layer-2 project for you? 🤔
Technical requirements:
For fast and cheap payments → Lightning Network.
For smart contracts and applications → Stacks or Rootstock or Merlin.
Security and popularity:
Lightning and Stacks have the largest support and popularity.
Rootstock and Merlin offer powerful technologies but are relatively new.
Technical compatibility:
Merlin enables EVM support, facilitating the transfer of applications from Ethereum.
Stacks uses a new language (Clarity), while Rootstock uses the native EVM.
In summary ✨
In 2025, Bitcoin Layer-2 protocols represent an important step towards enhancing user experience: faster transactions, lower fees, and broader support for smart applications.
Lightning Network: The leading option for payments.
Stacks, Rootstock, and Merlin: advanced solutions for smart payments that facilitate building DeFi and NFT.
CKB/Nervos: A powerful platform for storage and advanced applications.
These projects add new value to Bitcoin and return it to the original role it was designed for: functioning as global, seamless, and fast digital money.
👍 The future of Bitcoin Layer-2 looks promising, and with increasing reliance on it, we see Bitcoin becoming more than just a store of value—it will transform into a comprehensive daily tool.
Note: The content is informational only and not investment advice. Always do your own research before making any decision.