Bitcoin has established itself as a secure and decentralized network, but its base structure limits the number of transactions processed. This opens the way for Layer2 technologies.
Lightning Network: Evolution of Payment Systems
Lightning Network uses payment channels to ensure instant settlements and low fees. Over the past two years, Lightning has become more accessible by integrating with services like Coinbase and Cash App. Although the total capacity of the network has slightly decreased, this is related to optimization as liquidity has concentrated in reliable nodes.
Decentralized Finance: Opportunities from Stacks and RSK
Stacks provides smart contracts anchored to Bitcoin through Proof of Transfer. Statistics show that the use of sBTC is growing, however, there is a challenge in convincing Bitcoin holders of the safety of using Stacks. RSK remains an experienced smart contract platform that offers additional opportunities but also faces trust issues regarding bridges.
The Future of Bitcoin: New Approaches with BitVM and Botanix
BitVM offers a new approach to confirming computations based on Bitcoin's existing script, which could lead to the creation of Bitcoin-native rollups. Botanix, a newcomer to the market, aims to bring EVM-class applications into the Bitcoin ecosystem. Both projects have potential but require further testing and adaptation.
Bitcoin Layer2 is no longer just an experiment; it is already demonstrating real utility and could become the foundation for broader Bitcoin applications in financial operations. However, success depends on the community's willingness to accept a version of Bitcoin that turns it from a store of value into a fully functional financial system.
