Speaking of Layer2 networks on public blockchains, perhaps the most widely participated-in is Ethereum’s Layer2 network (abbreviated as Layer2). Projects like Arbitrum, Optimism, zkSync, and Stark have successively released tokens, causing mixed reactions. However, Layer2 is not exclusive to the Ethereum ecosystem; Bitcoin’s Layer2 networks show even more promising signs of cultivation.
Why do we need Layer2?
After the advent of blockchain technology, whether in the early Bitcoin network or the Ethereum network, despite the advantages of peer-to-peer payment systems or smart contracts, issues such as slow transaction speeds and high miner gas fees were prominently displayed, highlighting the shortcomings of Layer1.
To address and potentially resolve these issues associated with Layer1, Layer2 technologies and projects emerged. In essence, Layer2 is an independent blockchain network built on top of Layer1, designed to alleviate pressure and expand capacity by offloading most transactions from Layer1 to Layer2.
The Development Path of Bitcoin Layer2
First, let’s focus on why Bitcoin Layer2 is gaining renewed attention in 2024. While Ethereum has flourished with smart contract issuance and DeFi, the Bitcoin ecosystem has been relatively quiet. Starting from 2023, with the rise of protocols like BRC20, Atomical, and Runes, as well as the emergence of popular tokens like ORDI and SATS, along with renowned NFTs such as Bitfrog and Runestone, every phenomenon-level token/NFT has triggered a large-scale Gas War.
However, behind every phenomenon-level token/NFT lies a large-scale Gas War. After a period of development, Bitcoin assets have indeed increased. Although protocols like BRC20 and Ordinals have shown users and investors the immense potential and gameplay of the Bitcoin network, the inability to support smart contracts restricts Bitcoin’s network from expanding into more meaningful application scenarios.
Therefore, developers may have a more urgent attitude to construct infrastructure and networks for Bitcoin Layer2 in 2023 and 2024. As the saying goes, “Good food is not afraid of late.” The construction of Bitcoin Layer2 began long ago, and the following will outline its development path.