As the discussions on Bitcoin scaling intensify, various second-layer solutions for Bitcoin have emerged over the past six months. Ideally, a Bitcoin second layer should not only inherit Bitcoin’s security features but also establish a scalable and programmable on-chain financial infrastructure.
Bitlayer leads with its second-layer solution based on BitVM, utilizing layered virtual machine technology and supporting diverse computations through zero-knowledge proofs (zkp) and optimistic verification (op) mechanisms. Furthermore, Bitlayer has created a dual-channel asset bridge with OP-DLC and BitVM, achieving security equivalent to Bitcoin’s first layer.
The success of a blockchain also heavily relies on its ecosystem development. Currently, Bitlayer has established partnerships with 80 projects to build its ecosystem, with the intended TVL surpassing $1 billion.
- Bitlayer’s Design and Advantages Bitlayer’s key technological innovation lies in adopting the latest BitVM paradigm and the OP-DLC bridge. Compared to other Bitcoin second-layer solutions, Bitlayer aims to address three core challenges faced by second layers and has proposed corresponding solutions:
- Trustless 2-Way Peg — Integrating OP-DLC with the BitVM bridge, introducing an innovative model that surpasses traditional multisig approaches.
- Layer 1 Verification — Inheriting Bitcoin’s security through BitVM.
- Turing-Completeness — Supporting various virtual machines, achieving an environment that is 100% compatible with Ethereum Virtual Machine (EVM).
Design Architecture Optimistic Verification Bitlayer employs the same optimistic execution mechanism as Optimistic Rollup, combined with the MATT proposal (Merkelize All The Things) architecture. The system operates on fraud proofs and challenge-response protocols, without altering Bitcoin’s consensus rules.
We know that submitting a large program to a Taproot address requires extensive off-chain computation and communication, yet occupies minimal on-chain space. As long as both parties cooperate, they can execute any complex, stateful off-chain computation without leaving any trace on the chain. Disputes require on-chain execution only if a participant proves the invalidity of a transaction, leading to its rollback.
Bitlayer reduces data load and associated costs by submitting states and zero-knowledge proofs in a compressed format to a first-layer blockchain, thus achieving second-layer scalability.
Building Trustless Cross-Chain Bridges
The security of bridging assets is crucial for second-layer solutions, with the core issue being the method of asset control. The most common industry method is for second-layer platform operators to set up multisignature accounts based on MPC-TSS (multi-party computation and threshold signature scheme) or Schnorr technology, into which users transfer their assets. This traditional method results in users completely losing control over their assets. However, Bitlayer utilizes OP-DLC + BitVM technology, allowing users to retain partial control over their assets — my assets are my own.
Through its dual-channel bridge, Bitlayer not only meets the autonomy needs of first-layer users for BTC deposit and withdrawal operations but also ensures that native second-layer users can smoothly withdraw.
Layered Virtual Machine
To enable financial functions such as collateralized loans, swaps, and complex contracts, a Bitcoin second layer must have a programmable execution capability in its virtual machine (VM). Bitlayer introduces a Layered Virtual Machine (LVM), decoupling front-end smart contract execution from back-end zero-knowledge proof generation, supporting various smart contracts and zero-knowledge proof verifiers. With Taproot, ZK-STARKs verification is simplified, ensuring security and computational flexibility. Developers can seamlessly utilize existing EVM-compatible smart contracts within the LVM framework, benefiting from the enhanced execution capabilities provided by the layered architecture.
Bitlayer’s Ecosystem
In terms of ecosystem development, leveraging strong cooperative resources, Bitlayer currently has 80 ecosystem partners, including infrastructure, stablecoins, wallets, search engines, and more. We believe that once Bitlayer is launched on the mainnet, its ecosystem will flourish soon.
Current ecosystem partners include: StarkWare, Hacken, AWS Cloud, Ankr, Polyhedra, Macaron, Trustin, Babylon, Particle Network, Meson, Nubit, BitSmiley, TokenPocket, Xverse, Flash Protocol, Umoja.xyz, RunesTerminal, Lamina, NFTGO, Giants Planet, Surf Protocol, Tria, Tonka Finance, Ordimint, and Caliber.
To incentivize development on Bitlayer, on March 29, Bitlayer officially announced a series of ecosystem incentive programs. The first event, Ready Player One, will distribute $50 million worth of public chain tokens to ecosystem builders and project parties, encouraging the construction of Dex, Wallet, NFT Marketplace, Lending, LSD, Bridge, Stablecoin, and other types of projects on Bitlayer.
Currently, Bitlayer is also in deep cooperation talks with 180 potential partners and is preparing a series of incentive activities to attract users to participate in the Bitlayer community building, including launching Galxe and TaskOn loyalty points and ecosystem project competitions, as well as official NFTs.
Looking to the Future Roadmap With less than 10 days to Bitcoin’s halving, Bitlayer Mainnet V1 will launch soon.
In the next 1–2 years, we firmly believe that we will see more Bitcoin-native innovations being built and deployed on Bitlayer. Leveraging the momentum of Bitcoin, Bitlayer aims to become a vanguard in the evolution of the Bitcoin ecosystem.
Fundraising
Recently, Bitlayer secured $5 million in funding, led by Framework Ventures and ABCDE Capital, with follow-on investments from StarkWare, OKX Ventures, Alliance DAO, UTXO Management, Ametry Capital, Kenetic Capital, Kestrel, Global Coin Research, Pivot Global, and Web3Port.
Notable angel investors include Ryan Selkis, CEO of Messari; Dan McArdle, co-founder of Messari; Dan Held, founder of Asymmetry Capital; Dyma, CEO of Hacken; Trung, CEO of Sky Mavis; Andy, CTO of Sky Mavis; and Loi Luu, founder of Kyber Network, all of whom participated in this funding round.
Bitlayer’s seed funding round received strong support from ecosystem partners, including Hacken, AWS Cloud, Ankr, Polyhedra, Babylon, Particle Network, Meson, Nubit, BitSmiley, TokenPocket, Xverse, Flash Protocol, Umoja.xyz, RunesTerminal, and others.
About ABCDE
ABCDE is a VC focused on leading investment in top Crypto Builders. It was co-founded by Huobi Cofounder Du Jun and former Internet and Crypto entrepreneur BMAN，who both have been in the Crypto industry for more than 10 years. The co-founders of ABCDE have built multi-billion dollar companies in the Crypto industry from the ground up, including listed companies(1611.HK), exchanges(Huobi), SAAS companies(ChainUP.com), media(CoinTime.com), and developers platforms(BeWater.xyz).
Twitter：https://twitter.com/ABCDELabs
Website：www.ABCDE.com
