Although Bitcoin is the first and largest digital currency in the world, its underlying network has issues with speed and costs. That’s why solutions called Layer 2 emerged, aimed at improving performance without changing the original blockchain.
What is Layer 2 on the Bitcoin network?
These are simply networks that operate on top of the original Bitcoin network. They execute transactions away from the main network and then send the results back to it. This concept preserves Bitcoin's security while speeding up transactions and reducing fees.
How do Layer 2s work?
Layer 2 takes transactions that could be slow and expensive on Layer 1, processes them elsewhere (like an off-chain network or smart contracts), and then sends a summary of these transactions back to the Bitcoin network. The result? Faster, cheaper transactions with nearly the same level of security.
Benefits of Layer 2 on the Bitcoin network
• ✅ Lower fees: Transactions are much cheaper than on the original network.
• ⚡ Greater speed: Transactions occur in seconds, not minutes.
• 🧠 Ability to build applications: Layer 2 enables developers to build smart contracts and new applications on the Bitcoin network.
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The most important Layer 2 projects on the Bitcoin network in 2025
In 2025, strong projects emerged leading the development of Layer 2 on the Bitcoin network. Let's get to know the most important of them:
1. Lightning Network ⚡
The most famous and oldest Layer 2 project on Bitcoin. It allows instant transfers with almost negligible fees. Suitable for daily payments and microtransactions.
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2. Stacks $SXT
A network that enables smart contracts and decentralized applications (dApps) on Bitcoin. You can consider it the Ethereum of Bitcoin. There are NFT, DeFi projects, and complete Web 3 applications built on it.
3. Merlin Chain
A new project using ZK-Rollups to achieve Bitcoin's security with Layer 2 flexibility. It aims to bring Bitcoin into the DeFi world, significantly increasing programmability and scalability.
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4. Rootstock Infrastructure Framework $RIF
A platform that provides DeFi solutions on Bitcoin by integrating the Ethereum Virtual Machine (EVM) onto the blockchain. This means you can program smart contracts on Bitcoin as if you were working on Ethereum.
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5. Nervos $CKB
The Layer 2 network is flexible, supporting the building of dApps on Bitcoin by connecting it to other networks. CKB is considered a bridge between Bitcoin and different Web3 worlds.
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Summary 💡
If you think Bitcoin is just a store of value, think again! Layer 2 transforms Bitcoin from just a digital currency into a complete platform that can host applications and smart contracts. 2025 is the year when Layer 2 truly begins to take its rightful place in the future of blockchain.
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