1. Project Type: 'Infrastructure Level Layer2' of the Bitcoin Ecosystem

@BitlayerLabs is the **first Layer2 scalability solution on the Bitcoin blockchain based on BitVM achieving 'security equivalent to Bitcoin L1'**, positioned as a **high-performance smart contract platform** for the Bitcoin ecosystem. Its core mission is to **endow Bitcoin with programmability and scalability without sacrificing Bitcoin's security**.

Core Positioning and Functions:

1. Technology Type

- Optimistic Rollup architecture based on BitVM (Bitcoin Virtual Machine)

- Achieves secure binding with Bitcoin L1 through zero-knowledge proofs + challenge mechanisms

2. Core Functions

- Supports EVM-compatible smart contracts, allowing developers to seamlessly migrate Ethereum ecosystem DApps

- Provides a high throughput (5000+ TPS) and low latency transaction environment

- Achieve cross-layer liquidity of Bitcoin native assets (such as BRC-20, Runes)

3. Ecological Roles

- Bitcoin's 'Computational Layer', supporting complex applications like DeFi, GameFi, NFTs

- Connect Bitcoin mainnet with other L2/L3 hubs

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2. Core Technology Highlights: Security Equivalent Design

1. Innovation in Security Model

- BitVM Verification Mechanism

Through off-chain computing + on-chain verification model, allows anyone to challenge invalid transactions, ensuring L2 state is consistent with the Bitcoin mainnet.

- Inherit Bitcoin-Level Security

The final settlement of fraud proofs is anchored on the Bitcoin blockchain, achieving the same censorship resistance and irreversibility as L1.

2. Compatibility and Developer Friendliness

- 100% EVM Equivalent

Supports Ethereum development tools like MetaMask and Hardhat, lowering the development threshold.

- Native BTC Asset Bridging

Through a decentralized bridging protocol, achieve lossless cross-layer transfer of BTC and BRC-20 assets.

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3. Future Development: Opportunities and Strategic Directions

1. Key Development Opportunities

| Field | Development Plan |

|---------------|-----------------------------------|

| Technological Evolution | Optimize BitVM proof efficiency, shorten challenge period; support ZK-Rollup hybrid architecture |

| Ecological Expansion | Incubate Bitcoin native DeFi protocols (DEX, lending, derivatives) |

| Cross-chain Interconnection | Establish asset interoperability bridges with Ethereum, Solana, etc. |

| User Experience | Launch account abstraction (AA) wallets, reducing Gas costs by 90% |

2. Ecological Construction Strategy

- $100 million Developer Fund

Used to incentivize DApp migration and native application innovation, focusing on RWA, AI agents, and Bitcoin DeFi tracks.

- Integrate Bitcoin DA Layer

Plans to use the Bitcoin mainnet as a Data Availability (DA) layer to further strengthen decentralization.

- Modular Expansion

Supports customized L3 application chains to meet the needs of high-concurrency scenarios in gaming, social, etc.

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4. Challenges and Responses

1. Technical Complexity Challenges

BitVM is still in the early stages and needs continuous optimization of proof generation efficiency. The team has collaborated with Blockstream to advance circuit optimization.

2. Cross-Chain Security Risks

Adopts a three-fold asset bridge protection model of multi-signature + MPC + fraud proofs, planning to transition to a trustless cross-chain protocol.

3. Ecological Competitive Landscape

#Bitlayer With 'native Bitcoin security' as a differentiated advantage, focusing on BTC asset application scenarios (such as Bitcoin collateralized stablecoins).

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5. Summary: Key Infrastructure of the Bitcoin Ecosystem

Bitlayer solves the scalability problem of Bitcoin through a 'Security Equivalent' architecture, becoming the first to simultaneously meet:

- ✅ Bitcoin-Level Security

- ✅ EVM Full Compatibility

- ✅ High Scalability (>5000 TPS)

of Bitcoin L2. As the Bitcoin ecosystem enters the 'application explosion period,' Bitlayer is expected to become an underlying computing platform that meets the needs of a billion users, promoting the paradigm shift of Bitcoin from a value storage to a programmable financial ecosystem.

> Key Milestone Forecast:

> - Q3 2024: Mainnet launch, initiate airdrop plan

> - Q4 2024: First batch of 50+ ecological projects deployed (including Uniswap forks, Bitcoin LSR protocol)

> - 2025: Achieve ZK-Rollup upgrade, TPS exceeds 20,000+@BitlayerLabs