Everyone knows that Bitcoin is the king of cryptocurrencies, but some people don’t realize that Bitcoin alone cannot meet all challenges. The original network is slow, and fees can sometimes be exorbitant! That’s why networks called Layer-2 emerged to work over Bitcoin and solve many problems without changing the original blockchain.
Let's understand together: What are Layer-2 networks? How do they work? And what are the most important projects to watch in 2025 👇
💢 What does Layer-2 mean for Bitcoin?
Simply put, Layer-2 is additional technologies or networks that are built on top of the main Bitcoin network (Layer-1), helping to facilitate and speed up transactions without directly using the main network's resources.
It's like saying: a highway over the main road, helping cars move faster and reduce traffic.
💢 How does Layer-2 work?
The essence of these networks is that not all operations happen on the main chain; rather, they are calculated and executed externally, and then the final results are documented on the main blockchain.
So, for example, if you want to send many payments to someone, there’s no need to record every payment on the Bitcoin blockchain; you do it on a Layer-2 network and then record the final result.
💢 What is the benefit of Layer-2 networks?
Much higher speed than regular transactions.
Much lower fees.
Scalability: You can handle thousands of transactions per second.
It increases Bitcoin's efficiency without changing the original code.
💢 The most important Layer-2 networks for Bitcoin in 2025
1. Lightning Network
It is the most famous and has practically become a standard for fast Bitcoin payments. It allows for almost instant payments with negligible fees.
It works on a "payment channels" system between parties.
Supported by many wallets and online stores.
💢 Expanded explanation from Chainlink
2. Stacks (STX)
A project that brings smart contracts and DeFi to the world of Bitcoin. It allows developers to build applications on top of Bitcoin without changing anything from its core.
STX is listed on Binance
3. Merlin Chain
A relatively new network, focusing on integrating Bitcoin with Ethereum and smart contracts in a secure and efficient way.
It focuses on inter-chain compatibility.
It opens a new door for innovation on Bitcoin.
4. Rootstock (RIF)
One of the first networks to bring smart contracts to Bitcoin. It enables users to easily build decentralized applications (DApps).
5. Nervos CKB
A slightly different network, using a unique design that allows any other blockchain to work with it. It aims to be a unified platform for building decentralized applications on top of Bitcoin and others.