Bitcoin, as the earliest cryptocurrency asset, has its security and scarcity widely recognized by the market. However, due to a lack of programmability, its capital efficiency has been long limited. The rise of BTCFi aims to address this structural flaw.
In this process, Bitlayer provides a groundbreaking technological path. Unlike traditional cross-chain bridges that rely on multi-signatures or external validators, Bitlayer is based on the BitVM paradigm, using a 'single honest validator' to maintain cross-chain security in a minimalist model. This not only reduces trust costs but also provides greater robustness for Bitcoin's expansion.
Through Bitlayer, BTC can enter the decentralized finance system in the form of YBTC, enabling functions such as payments, staking, lending, and derivatives. Data shows that since its launch, Bitlayer's Total Value Locked (TVL) has quickly surpassed $500 million, reflecting market recognition of its model. At the same time, Bitlayer is advancing native Bitcoin Rollup and EVM compatibility, which means that future BTC assets will have stronger liquidity and application scenarios, truly transforming from 'static value storage' to 'dynamic capital elements'.
Therefore, Bitlayer is not merely a cross-chain solution but an important infrastructure for the BTCFi ecosystem, and its development may determine the depth and breadth of Bitcoin's financialization.
