Explore the Bitcoin Layer 2 projects that are shaping the future of Blockchain

• Bitcoin Layer 2 projects such as Core Chain and Bitlayer offer groundbreaking scalability and security features for blockchain innovation.
• zk-rollups and hybrid solutions transform Bitcoin’s capabilities, enabling advanced applications while maintaining decentralization.

The Bitcoin layer 2 ecosystem has expanded significantly over the past year, from its beginnings to a hotbed of groundbreaking developments.

While Stacks and Rootstock once dominated this sector, new projects are emerging, offering potential that was previously thought unattainable for Bitcoin. Here are 5 tiers of bitcoin set to arrive in 2025, according to Queen Gekko.

5 layers of Bitcoin worth highlighting

1. Core Chain: Bridging the gap between Bitcoin and Ethereum for a stronger blockchain

Starting in 2023, Basic series It boasts a total value locked (TVL) of over $300 million. Aiming to overcome the blockchain trilemma, two people — one a Bitcoin loyalist and the other an Ethereum enthusiast — built it.

Combining the decentralization and security of Bitcoin with the flexibility of Ethereum, their invention is based on a layer-one blockchain layer that fits into the Ethereum Virtual Machine (EVM).

Combining delegated proof-of-work (DPoW), delegated proof-of-stake (DPoS), and friendly staking of Bitcoin, the core chain relies primarily on the Satoshi Plus consensus process.

While CORE and BTC token holders may stake their assets for rewards, miners may set their hashing power to assist Core Chain validators. In their video, CoinGecko said:

“This mechanism allows Bitcoin miners to expand their participation in layer 2 ecosystems.”

2. Bitlayer: Enhancing Bitcoin scalability using BitVM technology

Launched in April 2024, Bitlayer was created by a group comprising well-known initiatives including Polkadot, Huobi, and Polygon. It has unveiled the Bitcoin Virtual Machine (BitVM), which uses Bitcoin security to provide enhanced smart contract capacity similar to Ethereum.

By using an optimistic approach, Bitlayer addresses Bitcoin’s scalability issues, thus providing efficient transaction processing without overloading the mainnet. “BitVM allows one to verify transactions without taxing Bitcoin’s central blockchain,” CoinGecko noted.

The ecosystem, which includes decentralized exchanges, lending platforms, and mortgage services, includes approximately $300 million.

3. Merlin Chain: Bitcoin innovation using zk-rollup technology

Using zk-rollup technology, Merlin series It is another layer 2 solution of Bitcoin that is compatible with EVM. It was first launched by Bitmap Tech in January 2024 with the goal of “making Bitcoin fun again.” Transactions are processed on the Merlin chain, aggregated, checked using zk-proofs, and then finalized on the Bitcoin base layer.

Merlin Chain, which has a TVL of $100 million, has quickly gained popularity thanks to its creative uses of decentralized finance, thus improving the Bitcoin ecosystem.

4. B-Squared: Seamlessly secure Bitcoin transactions with zk-Rollups

For efficient processing of off-chain transactions, B-Squared — or B² — also makes use of zk-rollups. Starting in April 2024, it consists of a data availability layer driven by incentivized storage nodes. Crucial for conflict resolution or validation, this ensures long-term secure storage of off-chain transaction data.

B²’s $90 million TVL is the result of its seamless application migration made possible by its EVM compatibility. It also supports many DeFi applications and Bitcoin staking.

5. BOB: Bridging the gap between Bitcoin and Ethereum with a hybrid layer 2 solution

With a hybrid layer 2 solution that spans Bitcoin and Ethereum, BOB approaches things differently. Originally scheduled to be a bullish offering for Ethereum in May 2024, BOB TVL raised $30 million.

Integrating Bitcoin’s proof-of-work security through embedded mining will help Bitcoin miners secure both the Bitcoin blockchain and the layer 2 BOB network.

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