What is Bitlayer and how does it work?
Layer 2 for Bitcoin: Bitlayer operates as a layer-2 solution, adding scalability, efficient transactions, and EVM (Ethereum Virtual Machine) compatibility, all while maintaining the security and backing of the main Bitcoin network.
BitVM: advanced smart contracts: Thanks to BitVM, Bitlayer allows the execution of complex smart contracts on Bitcoin, something that the original chain does not natively support.
Trustless multi-chain bridges: Through the BitVM Bridge, it allows Bitcoin (or tokenized representations like YBTC) to move to other blockchains (e.g., Sui, Arbitrum, Starknet, Base, Sonic, Plume Network) without centralized intermediaries, opening the door to the adoption of BTC within the DeFi ecosystem.
Adoption by large mining pools: Bitlayer already has the backing of 31.5% of Bitcoin's hash rate, with large pools like AntPool, F2Pool, and SpiderPool collaborating on the implementation of BitVM.
Impact for the future
1. Bitcoin as a productive asset
Traditionally, Bitcoin has been perceived as “digital gold”, primarily as a store of value. Bitlayer changes this by allowing BTC to be a yield-generating asset: it can be used in staking, yield farming, loans, exchanges on DEX, and more, all without leaving the Bitcoin ecosystem.
2. Expansion to DeFi ecosystems
Projects like YBTC on Sui already show how Bitcoin can fully enter the DeFi space. Additionally, its roadmap includes future integrations with other chains (Arbitrum, Starknet, Base, Sonic, Plume, Cardano), which would consolidate an interconnected ecosystem for BTC.
3. Reactivation of the fee market for miners
As block rewards decrease, the economic viability of mining increasingly depends on transaction fees. Bitlayer could incentivize many more operations (contracts, DeFi, etc.), thereby strengthening income for miners.
