BTC L2 Research Report: The overall market value of L2 is only 0.1% of BTC's market value❓ Inventory of current mainstream solutions

This article is a full translation based on yesterday's outline. The full text is 14,000 words. Builders who are interested in the Bitcoin ecosystem need to spend time reading it

List the genealogy of most Bitcoin expansion solutions currently on the market. Even if I usually pay more attention to infrastructure, I have benefited a lot (because I may have paid more attention to the Ethereum system originally)

Titles and subtitles of this article🗝️

1. Preface

2. Why is the Bitcoin expansion solution important?

2.1 Why do we need to expand Bitcoin?

2.2 Potential market space for BTC L2

2.3 Analysis of mainstream solutions for Bitcoin expansion

3. Overview of Bitcoin expansion solutions

4. Outlook and conclusion

At the same time, the translation of this article took a lot of energy. If it is really helpful to you, thank you for your three-in-one support🙏🏻

- Preface📍

Although Bitcoin is still the largest core asset in the crypto field, it still lags behind in scalability, programmability, and developer interest.

However, things have changed.

Casey Rodarmor’s introduction of Inscriptions in December 2022 was a key turning point, leading to the rise of the Inscriptions market and the subsequent hype cycle of Bitcoin NFTs in 2023.

All of a sudden, Bitcoin’s block space was in greater demand than ever before, and fees soared. The community then innovated further and found a way to put fungible tokens on top of Bitcoin, namely BRC-20.

This frenzy continued, and the impact on Bitcoin became more and more obvious. Recently, we also saw the launch of the Rune Protocol, a more efficient and simpler way to place fungible tokens and encourage Meme activity on Bitcoin.

The resurgence of the Bitcoin derivative ecosystem means that there is now a whole new group of users, developers, traders, and even speculators who are more interested in Bitcoin than ever before.

The financing and development enthusiasm of the Bitcoin ecosystem is something we have never seen in the past, and we have even seen some builders transition from developing "Bitcoin killers" to the Bitcoin ecosystem process.