Cross-Chain Interoperability Protocol: Design a Layer 2 protocol that enhances Bitcoin's interoperability with other blockchains. This protocol would enable seamless and secure transfers of Bitcoin across different blockchains, allowing users to leverage the strengths of various ecosystems while maintaining Bitcoin as their base currency. Such a system could support decentralized finance (DeFi) applications, enabling Bitcoin holders to directly participate in staking, lending, and yield farming on other platforms without needing to exchange their BTC for other tokens.