Bi-weekly Dose of Bitcoin Layer 2s & What’s Next #May 16th, 2024
Hi friends,
Make your one Bitcoin more than just ONE BITCOIN.
This week we saw frequent movements of BOB, Rootstock, Rollkit, the ecosystem is rapidly expanding. Currently, which Bitcoin Layer2 projects with Western backgrounds are worth watching? I can list some names: BOB, Mezo, ZKM, Spiderchain, QED Protocol, Bitfinity etc; Correspondingly, projects with a Chinese background include Merlin, Bitlayer, B², BeL2, BEVM etc. Which projects do you currently favor? What is the reason?
Its red and Orange for Hong Kong last week.
Here you can get some info from a reporter from BlockBeats: Link
By the way, I really like the concept of Stacks is shouting: Bitcoin is mre than you think.
Top Stories
There are 456 contracts deployed on Stacks in just April. and four reasons can explain this.
BounceBit Mainnet is live on May 13th.
Babylon will be sunsetting the current Bitcoin Staking testnet (bbn-test-3) on 16/05/2024.
Nubit’s Pre-Alpha Testnet successfully concluded.
Here ia the full list of Bitcoin Layer 2s funding news: Arch, Botanix Labs.
Arch claims to be the first Bitcoin-native application platform, bringing “bridgeless” trading directly to the Bitcoin blockchain.
Botanix Labs’ Spiderchain is designed to allow any application or smart contract running on an Ethereum layer to be in effect copied and pasted onto Bitcoin.
By the way, here is an article that advocating for Arch from Multicoin Capital.
New Protocol Intro
An interview with exSat founder, pre founder & CEO for EOS Network Foundation.
The team hopes to use all the UTXO data of Bitcoin, so that transactions can be initiated on Bitcoin in the future, and smart contracts can be triggered on scalable solutions, such as on EOS or other compatible platforms. The project plans to release the first test version in the near future, which will be a smart contract version based on EVM.
Introducing Citrea’s two types of proofs: Batch Proofs and Light Client Proofs.
I have to commit that its a little obscure to me, and those technical experts can read further.
BitVMX was the only project presented that expands Bitcoin computing capabilities without changing Bitcoin consensus rules. “BitVMX does not need to wait for the CAT to meow.” Actually, We have mentioned BitVMX in our Weekly Dose of Bitcoin L2 in April , you can check it here.
LumiBit Sets New Paradigm in Runes Trading: Unifying Markets, Flexible Settlements, and Native Signature
Key Takeaways
- LumiBit provides a seamless Runes trading experience across Bitcoin’s Layer 1 and Layer 2, allowing users to access combined liquidity and execute transactions without switching networks.
- LumiBit supports transactions across both layers, enabling users to freely choose where their assets are settled — either on Layer 1 or Layer 2 — further enhancing trading flexibility.
- Native Signature allows users to use the same Bitcoin address across both layers, simplifying the transaction process and maintaining a consistent user experience.
Top Opinion
From@0xShinChannn: What the hack is OP_CAT? What are its use cases?
TLDR of what OP_CAT is that it is an initiative to elevate Bitcoin’s smart contract capabilities similar to Ethereum’s. And now it has received its initial formal designation as BIP 347 as a potential upgrade.
From @nikzh : Despite being a simple and safe thing, OP_CAT is cOntEnTioUs because of two reasons:
- It’s not coming from Bitcoin Core, thus degrading their power 🤷♂️
- Unlike all the previous soft forks since 2015 (CLTV, CSV, SegWit, Taproot), it has no use for the Lightning narrative.
From @nikzh : Pessimistic feeling about the decentralized future of crypto.
Ethereum is now captured by the very same custodial L2 plague as Bitcoin. And it literally repeats Bitcoin step by step.
From @cmdefi : Is Babylon the Hanging Gardens of Bitcoin?
Key point: By leveraging the economic security of Bitcoin and the cross-chain communication technology of Cosmos IBC, Babylon allows BTC holders to provide an additional layer of security for other PoS blockchains. This is done through a unique pledge mechanism, all while maintaining asset autonomy and remaining within the Bitcoin network. In return, they gain benefits. Babylon uses certain advantages of Proof of Work (PoW) to enhance the security of Proof of Stake (PoS).
Valuable Research
Simple Explanation of Bitcoin Layer2 Cross-chain Bridge Design
This article provides a simple overview of the Bitlayer and Citrea’s BitVM bridge principles. It also discusses the BitVM bridge’s limitations. (Note: While the bridge does not have security concerns, it does have usability issues or what we may call liveliness issues)
Bitcoin Dapps: A complete beginner’s guide.
In this guide, the author will focus on Bitcoin dapps and why it makes sense to build them.
Bitcoin’s Halving Aftermath
Key Takeaways:
- Between a record-breaking volume of transaction fees and a massive bid for the collectible “Epic Sat,” miner revenue for Bitcoin’s Halving block totaled $4.7M
- The Runes protocol launch on block 840,000 triggered a surge in OP_RETURN transactions, with 518K OP_RETURNs on 4/20 & an all-time-high of 799K on 4/23
- Adjusting miners’ earnings for power consumption, miner revenue per megawatt now sits at $1.3K, approaching the lowest levels since the FTX collapse in 2022
Jobs in the space
An valuable collection for you:
OK, that’s all for this week.
Questions or more feedback? Get in touch with us here. DM always open for everyone!
