Author: @Jim X: 0xJimc

Preface

Bitcoin has great advantages in decentralization and high security, but the transaction speed and cost issues on the main chain have always been the focus of industry attention. As the Bitcoin ecosystem continues to expand, it also faces the dual challenges of scalability and smart contract limitations, which greatly restricts the development of its ecosystem. Therefore, Bitlayer proposed a Turing-complete computing layer solution based on the BitVM paradigm and zero-knowledge proof (ZK), which inherits the security of Bitcoin and provides stronger scalability and flexibility.

Project Description:

Bitlayer is the first Bitcoin security equivalent Layer 2 based on BitVM. Bitlayer is committed to becoming the computing layer of Bitcoin, aiming to introduce hyper-scalability to Bitcoin while inheriting its security and providing users with a high-throughput, low-cost transaction experience. The core goal of Bitlayer is to solve the trade-off between security and Turing completeness of Bitcoin Layer 2 through cryptographic innovation and blockchain engineering implementation.

Financing background:

$5 million [Seed round]

This round of financing was jointly led by Framework Ventures and ABCDE Capital, with participation from dozens of institutions including StarkWare, OKX Ventures, Alliance DAO, UTXO Management, Asymmetric Capital, Kenetic Capital, Pivot Global, Web3Port, Mindfulness Capital, C6E Capital, PAKA, Comma3 Capital and Kronos Ventures, as well as well-known Bitcoin OG&KOL Dan Held, Messari CEO Ryan Selkis and co-founder Dan McArdle and other well-known Web3 entrepreneurs.

Technical core:

技术架构

1. Turing Completeness

BitVM is an innovative approach to achieving Turing-complete computing on the Bitcoin network. By combining zero-knowledge proof (ZK) technology, Bitlayer provides a flexible and efficient computing layer that allows complex smart contracts and computing tasks to be executed on the Bitcoin network.

  • Layered Virtual Machine (LVM) technology: separates the front-end smart contract execution layer from the back-end zero-knowledge proof generator. The front-end supports multiple smart contract platforms, such as EVM and CairoVM, while the back-end uses ZK-STARK and ZK-SNARK technology to verify the correctness of the calculation.

  • Optimistic execution mechanism: The system assumes that all transactions and calculations are valid unless a participant can prove that they are invalid. This mechanism increases the speed of transaction processing and confirmation, while ensuring the security of the system through a challenge mechanism.

  • Off-chain calculation, on-chain verification: complex calculations are performed off-chain, and the calculation results are submitted to the chain for verification through zero-knowledge proof, which not only ensures the efficiency of calculations but also reduces the on-chain load.

2. ZK-STARK Validator

ZK-STARK (Zero-Knowledge Scalable Transparent Argument of Knowledge) is an efficient zero-knowledge proof system with high security and resistance to quantum computing attacks. By combining Bitcoin's Taproot technology and FRI (Fast Reed-Solomon IOP of Proximity), Bitlayer has implemented the most efficient ZK-STARK validator on Bitcoin.

  • ZK-STARK advantages: no trust setup required, short proof generation and verification time, small proof size, based on hash functions, and post-quantum security.

  • Taproot technology: Improves the privacy, efficiency, and flexibility of Bitcoin transactions, making complex transactions look like ordinary transactions, thereby improving privacy.

  • FRI Protocol: An efficient protocol for zero-knowledge proofs that improves verification efficiency and reduces costs through fast Reed-Solomon IOP of Proximity.

Through the combination of these technologies, Bitlayer can efficiently and cost-effectively verify the correctness of complex calculations on the Bitcoin network, ensuring the efficiency and security of the system.

3. Trustless Dual-Channel Cross-Chain Bridge

The trustless dual-channel cross-chain bridge uses BitVM and OP-DLC technology to achieve secure asset transfer between different blockchains, and users can complete cross-chain operations without trusting any intermediaries.

  • BitVM channel: Based on BitVM technology, BTC is locked through a multi-signature address, and users can perform off-chain operations on the Bitlayer second-layer network after locking. This channel provides high flexibility and fast asset transfer.

  • OP-DLC channel: Based on the Optimistic Discreet Log Contract technology, it realizes trustless asset transfer through predefined conditions and signature mechanism. Users can predefine a variety of future withdrawal requirements to ensure the security and flexibility of assets.

  • Dual-channel design: Combining the BitVM and OP-DLC channels, it provides users with a variety of options to meet different needs. The OP-DLC channel is suitable for users who need high security and self-controlled assets, while the BitVM channel provides higher flexibility and speed.

Through a trustless dual-channel cross-chain bridge, Bitlayer provides a secure, efficient, and flexible cross-chain asset transfer solution, ensuring the safe and reliable flow of assets between different blockchains, greatly improving user autonomy and operational convenience.

Bitcoin Layer 2 TVL Comparison

  • Bitlayer TVL data

    Total TVL: $370 million

    24h trading volume: $294,000

    24h cost: $18,000

Bitlayer TVL 数据

  • Merlin TVL data

    Total TVL: $370 million

    24h trading volume: $3.25 million

Merlin TVL 数据

  • BSquard TVL data

    Total TVL: $79.8 million

    24h trading volume: $110,000

BSquard TVL 数据

From the TVL comparison of the above three projects, BSquard's TVL data is relatively low, Bitlayer and Merlin's on-chain TVL data are comparable, and Bitlayer's trading volume is slightly lower than Merlin's. Merlin's first phase of airdrops made a very large profit, and the subsequent phases became more and more competitive. While there are not many users trading on the chain at present, and the airdrop expectations for early users are greater, the profit ratio is higher, so participate in the Bitlayer ecosystem as soon as possible! Therefore, Jim Guo has compiled a "OKX Web3 Wallet Bltlayer Interaction Tutorial" for everyone here!

Interactive Tutorial:

Interaction cost: 20USDT

Interaction time: 10 minutes

Interaction Expectation: BTR worth $1.2 million

✅Direct link: https://www.okx.com/zh-hans/web3/discover/cryptopedia/event/37

Step 1: Complete the Bitlayer task board

(Task requirements: follow and interact with Bitlayer related social media, and obtain Bitlayer Gas)

1️⃣Follow Bitlayer’s official account and interact with it

First, link the OKX Web3 wallet

1. Follow Bitlayer

2. Like and retweet

3. Click Verify

✅Task verification successful

✅任务验证成功

2️⃣Get Bitlayer Gas

1. Link your wallet

2. Select the amount of Gas you want to exchange

3. Click to buy

4. Select the chain you want to transfer

5. After scanning the QR code or transferring the funds, click Done.

✅充值成功✅任务验证成功

Step 2: Complete the Macaron quest section

(Task requirements: trade the designated currency pair (USDT/BTC) 5 USDT or more.)

✅Direct link: https://www.macaron.xyz/

1️⃣Conduct a Swap transaction of 5U or more (USDT/BTC)

1. Enter the amount you want to trade (≥5U)

2. Approval and authorization of USDT

3. Click Swap

4. Click Finish

✅交易完成✅任务验证成功

Step 3: Complete the Avalon Finance task board

(Task requirements: Deposit at least 0.0001 BTC on Avalon)

✅Direct access: https://app.avalonfinance.xyz

1️⃣Deposit at least 0.0001 BTC on Avalon

1. Link wallet address

2. Select BTC pool for deposit

3. Enter the amount you want to deposit [at least 0.0001 BTC]

4. Click Deposit BTC

✅质押成功✅任务验证成功

Step 4: Complete the Vanilla Finance quest

1️⃣Follow Vanilla Finance’s official X account

2️⃣Deposit funds on Vanilla Finance [at least 1 USDT]

✅Direct link: https://bit.vanillafinance.xyz

1. Link wallet address

2. Click Go

3. Enter the amount you want to stake [at least 1 USDT]

4. Click Approve Deposit

✅积分获取成功✅任务验证成功

Step 5: Complete the Anome quest section [redeemable]

Mission requirements: Go to the official Anome website and cast any game card (full redemption is supported).

1. Link wallet address

2. Choose 1 card for MINT

3. Approval of USDT

4. Click mint

✅Mint成功✅任务验证成功

Step 6: Complete the Zearn Quest Board

(Task requirement: Deposit at least 1 USD worth of BTC on Zearn)

1. Enter the amount of BTC you want to deposit [value greater than 1USDT]

2. Click Submit

✅ Deposit successfully, deposit 3 times to get 200 ZEA tokens

✅存入成功，存入3次可获得200 ZEA 代币✅任务验证成功

Step 7: Complete the GamerBoom quest board

1️⃣Participate in daily click activities

2️⃣On-chain interaction (complete daily check-in)

1. Click mint

2. Click the link to mint

✅任务验证成功

Summarize:

Bitlayer is the first Bitcoin-equivalent Layer 2 based on BitVM. While inheriting Bitcoin security, it provides stronger scalability and flexibility. It also has a strong financing background, with Framework Ventures and ABCDE Capital jointly leading the investment. It also works closely with OKX Web3 wallet. A steady stream of users are pouring into the Bitlayer ecosystem, and the event rewards are generous. The project team is professional and strongly supports the ecosystem, making it a very worthy interactive partner!