Bitcoin Layers

[bitmover]

I did not know that the ICP internet computer is a bitcoin layer.

The lack of depency of sidechains and connection to the mainnet makes their classification within bitcoin layers misleading.
some good sidechains such as spiderchain, Softchain, and Drivechain are not included.

I was going to say exactly the same

I remember this coin in coinmarketcap.com a few years ago.  It is strange that it is a sidechain with its own token.

I noticed that it also allows the creation of runes and ordinals. Why we don't see those there as well? I don't get seeing everything just in mainnet..

[Hamza2424]

Thanks, buddy for the references, L2s on BTC are good

Hmm, there are many missing layers, TBH i was curious to find some new layers but these are just some old ones, it's good that there's a section of test-net chains as well. At the same time, I'm curious about STX as this is one of the old ones and with L2's trend in Bitcoin, the most potential still lies between these old ones with some exceptions.

[taufik123]

Thanks, buddy for the references, L2s on BTC are good

Hmm, there are many missing layers, TBH i was curious to find some new layers but these are just some old ones, it's good that there's a section of test-net chains as well. At the same time, I'm curious about STX as this is one of the old ones and with L2's trend in Bitcoin, the most potential still lies between these old ones with some exceptions.

STX is indeed among the top 5 Bitcoin Layer 2 Layers, and the former is still occupied by the Lightning Network.
Although many Bitcoin L2 developers are not continuing their development, it is still going on and there are several updates being made.

The Lightning Network can be a solution for fast and cheap payments on the Bitcoin network, but many also don't like the Lightning Network.
Hope to continue to develop Bitcoin Layer 2 which has good potential for the future, as this will provide a good option in the Bitcoin network.

[dkbit98]

It is interesting that if you switch to testnet or all settings on BitcoinLayers website you will get much more sidechain projects, so there is nothing missing.
There are several projects that are under review so there is no risk rating for them yet.
One that is most interesting to me is Mercury Layer that is improving bitcon privacy, this project previously existed as Mercury wallet, but it's now updated.
https://www.bitcoinlayers.org/layers/mercurylayer

[akeemqaz]

This is very good information to share. I'm just learning that Bsquared network's token will be BSQ instead of B2. I've been wondering what it could be for a long time.

[dkbit98]

I saw the news today that one of the pioneers in Bitcoin space Jeff Garzik is working on releasing new Layer2 Hemi Network that works both for Bitcoin and Ethereum.
Hemi Network testnet has gone live today and it is using Proof-of-Proof" consensus with POP miner.
They are wrapping Ethereum Virtual Machine around a BTC node so it is easier to bulit compatible applciations that work for bitcoin and ethereum.
https://hemi.xyz/

[Metha Wulandarin]

I saw the news today that one of the pioneers in Bitcoin space Jeff Garzik is working on releasing new Layer2 Hemi Network that works both for Bitcoin and Ethereum.
Hemi Network testnet has gone live today and it is using Proof-of-Proof" consensus with POP miner.
They are wrapping Ethereum Virtual Machine around a BTC node so it is easier to bulit compatible applciations that work for bitcoin and ethereum.
https://hemi.xyz/

I see that not many people know about this project, I see on Twitter only a few people who participate in discussing this project, maybe it takes time and introduction, if there is a testnet program that provides incentive prizes for communities or users in the testnet program, maybe this project will develop faster.

[dkbit98]

In another post Galaxy reports is claiming that most Bitcoin layer 2 solutions won't survive.
Bitcoin rollups will require millions of dollars per year just to keep their heads above water thanks to transaction fees.
They claim that nobody will use Bitcoin rollups if they are 100 times more expensive than on other chains.
https://decrypt.co/242994/most-bitcoin-layer-2-networks-wont-survive-galaxy-research

[ABCbits]

In another post Galaxy reports is claiming that most Bitcoin layer 2 solutions won't survive.
Bitcoin rollups will require millions of dollars per year just to keep their heads above water thanks to transaction fees.
They claim that nobody will use Bitcoin rollups if they are 100 times more expensive than on other chains.
https://decrypt.co/242994/most-bitcoin-layer-2-networks-wont-survive-galaxy-research

Their report makes sense. But in practice, many Bitcoin L2 are lying about it's decentralization or dependency towards Bitcoin network where they don't need to post zero-knowledge data. Although for real L2 which use rollup scheme, i guess they need to post zero-knowledge data less frequently or find way to reduce size of the data itself.

[dkbit98]

Their report makes sense. But in practice, many Bitcoin L2 are lying about it's decentralization or dependency towards Bitcoin network where they don't need to post zero-knowledge data. Although for real L2 which use rollup scheme, i guess they need to post zero-knowledge data less frequently or find way to reduce size of the data itself.

Yeah there are some interesting development with zero-knowledge compression on Bitcoin, and I think we could see massive improvements in privacy soon if that moves in right direction.
I am hoping in having some real decentralized way to have totally private transaction with bitcoin using zero-knowledge technology.

I don't know if anyone heard but there are big changes with Bitgo W-BTC wrapped bitcoin on ethereum, and everyone should stop using that multi-jurisdictional custody crap asap!
https://blog.bitgo.com/bitgo-to-move-wbtc-to-multi-jurisdictional-custody-to-accelerate-global-expansion-plan-2ea0623fa2c8

[MrSpasybo]

I was going to say exactly the same

I remember this coin in coinmarketcap.com a few years ago.  It is strange that it is a sidechain with its own token.

I noticed that it also allows the creation of runes and ordinals. Why we don't see those there as well? I don't get seeing everything just in mainnet..

Internet Computer is a Layer-1 blockchain but also supports smart contracts that process transaction data like a Layer-2 for Bitcoin, providing users with a faster and cheaper environment while still leveraging the security of the Bitcoin Layer-1 network. I think this will be a future trend as many Layer-1 want to receive a portion of the Bitcoin cash flow by becoming Bitcoin Layer-2.

Among the mentioned projects, I'm only interested in Stacks because its STX token has made an impressive recovery from $0.2 to $3.8 thanks to the Layer-2 trend. I don't have a need to use Layer-2 to move or profit from BTC, but I will follow the price fluctuations of their native tokens.

• Understanding ICP for Bitcoin developers

[dkbit98]

BitMex released a new blog page for Bitcoin Layer 2s and The CoreDAO Model.
This is interesting to know after Coinbase decided to release cbBTC token, and after controversy with BitGo and wrapped Bitcoin.
I would stay away from ALL present and future wrapped bitcoin tokens.
https://blog.bitmex.com/bitcoin-layer-2s-coredao-model/

[dkbit98]

Interested update made on BitcoinLayers website, they just left two projects in section for Bitcoin layers, and they moved all other projects to different page for wrappers.
This are categorzed as sidesystems and they are not directly bitcoin layers, they explained everything in their latest blog post:
https://www.lxresearch.co/starting-to-define-layers-a-year-later/

You can find list of bitcoin wrappers on this this page now:
https://www.bitcoinlayers.org/?view=wrappers