@BitlayerLabs Series
Preface
Yesterday, while browsing Twitter, I suddenly noticed that everyone was talking about the Bitcoin ecosystem again, as if the hype of 2021 had returned. However, this time the protagonist is no longer NFTs, but BTCFi.
Bitlayer's approach is straightforward: to push Bitcoin from a state of 'just holding' to real financial use cases. Its advantage aligns with two trends:
Institutions are starting to accept BTC—ETF listings, publicly traded companies holding it;
Users hope that BTC can generate returns—not just hoarding it for appreciation.
Bitlayer has built the BitVM Bridge and a high-performance Rollup network, attempting to become the underlying infrastructure for BTCFi. If it can address trust minimization and liquidity issues, it may indeed replicate the path of Ethereum DeFi.
However, the challenges are also evident:
The difficulty of cold-starting the ecosystem is high; without applications and developers, even the best infrastructure may go to waste;
Intense competition with existing BTC layer twos, such as Stacks and Rootstock, which have already accumulated a time advantage.
Thus, Bitlayer's opportunity lies in whether it can differentiate itself with 'hard technology' to drive developer migration and user engagement.
