Bitlayer is the first Bitcoin Layer 2 network built on BitVM, dedicated to bringing Turing-complete smart contracts and DeFi functionality to the Bitcoin ecosystem without sacrificing security, achieving a high-throughput, low-cost transaction experience.
Technical Architecture and Functionality
Bitlayer enhances transaction efficiency by using BitVM (Bitcoin Virtual Machine) and Zero-Knowledge Proof (ZK) technology to batch process a large number of off-chain transactions before submitting them to the Bitcoin mainnet for confirmation. At the same time, it adopts Layered Virtual Machine (LVM) technology, with the front end supporting mainstream virtual machines like EVM, and the back end achieving efficient verification through ZK-STARK, ensuring the security and flexibility of calculations.
Asset Cross-Chain and Bridging
Bitlayer has designed a dual-channel bi-directional anchored asset bridge (OP-DLC bridge and BitVM bridge) that supports decentralized, trustless cross-chain transfers of BTC between the Bitcoin mainnet and Bitlayer. Even if there are issues with the Bitlayer network, users can still safely retrieve their assets through a forced withdrawal mechanism.
Ecosystem Development and Financing
- In April 2024, Bitlayer mainnet V1 launched, attracting over 500 ecosystem projects, with a total locked value (TVL) exceeding $500 million.
- In May 2024, completed a $5 million seed round financing, with participation from Framework Ventures, ABCDE Capital, StarkWare, and other institutions.
- In July 2024, completed a $11 million Series A financing, with investors including OKX Ventures, AllianceDAO, and others.
- In October 2024, Bitlayer Labs secured an additional $9 million in financing for the upcoming V2 mainnet, which will introduce OpVM technology to further enhance verification efficiency and promote institutional adoption.
Future Outlook
Bitlayer plans to launch a native token BTR (total supply of 2.1 billion), which will be used for governance, staking, and cross-chain asset exchange to further promote ecosystem development. Additionally, Bitlayer is in discussions with ETF issuers such as Franklin Templeton and Fidelity to drive institutional-grade applications.
