BitLayer is a second layer scalability solution (Layer 2) for Bitcoin, based on the BitVM paradigm, which introduces smart contracts and decentralized applications (dApps) compatible with the Ethereum Virtual Machine (EVM). Its native token, BTR, has a total supply of 1 billion and plays a central role in the ecosystem, with functions in incentives and governance. BTR holders can participate in governance decisions, such as voting on proposals and adjusting parameters, promoting decentralization. Additionally, BTR is used to reward developers, users, and partners, incentivizing the growth of the ecosystem.
Outlook and Potential
Growth of the DeFi Ecosystem on Bitcoin: BitLayer enables the creation of dApps in sectors such as decentralized exchanges (e.g., Macaron), prediction markets (PredX AI), and token launch platforms (Pumpad). This expands the use cases of Bitcoin, traditionally limited to basic transactions, toward decentralized finance (DeFi). Its ability to integrate with other blockchains, such as Ethereum, through asset bridges enhances interoperability and access to liquidity.
Innovative Technology: BitLayer utilizes zero-knowledge proofs (ZK Proofs) and off-chain transaction processing to reduce congestion on the Bitcoin network, offering faster and more private transactions. Its compatibility with EVM makes it easier for developers to migrate or create dApps, which could attract significant projects.
Tokenomics and Adoption: With a limited supply of BTR (80% for circulation through liquidity pools, 15% for incubation projects, and 5% for governance), BitLayer seeks a balanced model that fosters adoption. The ability to exchange BTR with BTC and other Layer 2 or Ethereum assets increases its utility. However, adoption will depend on BitLayer's ability to attract projects and users against competitors like Lightning Network or Stacks.