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Top 5 Bitcoin Layer-2 projects in 2024
Bitcoin Layer-2 projects are not just an attempt to scale the performance of the Bitcoin blockchain, but also an attempt to scale the utility of the Bitcoin network. Unlike the Ethereum blockchain which runs a programmable layer, the Bitcoin blockchain is stuck in its primary utility as a P2P payment solution. This in addition to its snail-speed efficiency makes it an archaic network. L2 projects are adopting different approaches to salvage the network and put its rigid security and decentralization facility into more use.
But what are Bitcoin Layer-2 networks?
What are Bitcoin Layer-2 networks?
Bitcoin Layer-2 attempts to run an execution environment away from the Bitcoin network while contracting the Bitcoin Network’s consensus for the final computation of the transactions. By running a separate execution environment, Bitcoin layer-2 networks are able to implement diverse technologies to improve performance and overall user experience while allowing the Bitcoin coin and Network to be used in advanced activities like Decentralized Finance (DeFi).
An overview of how Bitcoin Layer-2 projects work
The blockchain is a rigid system. Even new-generation blockchains inherit this rigidity. This means that making significant…
