In November last year, at the beginning of the second wave of Inscription, we made two positive judgments. That is, when the Bitcoin chain rate continues to remain low, various on-chain acceleration tools and methods will be beneficial in the short term, and Bitcoin will be beneficial in the long term. L2
Later, both judgments were verified, but Bitcoin L2 was slightly different from what I had imagined.
The difference is that Bitcoin L2 does not solve the main network congestion problem, nor does it solve the main network scalability problem, it only solves the problem of money making money.
At that time, the Bitcoin chain was hot, and network congestion and gas were soaring. However, everyone was willing to spend money to get chips. Therefore, the three ways to accelerate transactions: mining pool acceleration, RBF and CPFP were paid more and more attention to.
Needless to say more about mining pools, but in the early days, only the sparrow wallet could accelerate RBF and CPFP. Later, xverse and wizz cash also supported it one after another. Together with popular science tutorials from major bloggers, personal transaction congestion was relieved in the short term. problem, but treating the symptoms rather than the root cause
At that time, I thought that the ultimate solution to the congestion problem of the Bitcoin main network would still have to be L2. Why rely on L2?
The reason is the inertia of thinking we inherited from Ethereum. How can we solve the congestion and expense of the Ethereum main network? Rely on L2; how can we solve the congestion and expensiveness of the Bitcoin main network? Thinking inertia - rely on L2
But can we do such a simple mind transfer? I think not now
Because the cause of congestion in Ethereum is the explosion of the application layer, which is caused by the interaction requirements brought by on-chain applications, the responsibility of Ethereum L2 is to technically ensure the security of the inherited main network, and then make it cheap enough to attract applications and Users can just come and interact, and the congestion of Ethereum will naturally be solved.
However, the cause of Bitcoin congestion is the explosion of asset issuance protocols, not application layer projects. Then Bitcoin L2 cannot solve the congestion problem of the main network.
Because the Bitcoin network has the greatest consensus, if the asset issuance protocol is migrated to the faster L2 and allows everyone to create new products and grab chips there, the main network will indeed be unblocked, but the assets will not be recognized by the mainstream consensus.
Therefore, any new asset issuance protocol will be released on the Bitcoin main network. Most users will only recognize assets issued by fomo on the main network. As long as the model of new and fair asset issuance remains unchanged, the Bitcoin network will often be congested. , L2 cannot solve this problem
The fact proves that even though Merlin and B2 networks now have billions of TVL, the creation of new assets is still on the Bitcoin mainnet. It is still expensive where it should be, and it must be blocked where it should be.
So, since Bitcoin L2 cannot solve the mainnet congestion problem, what other value does it have?
I think the answer is to speed up the flow and application of assets and provide opportunities for large funds to enter. The application of assets can actually be completed on the Bitcoin main network, but it takes time, such as the AVM being developed by atomicals, and various native swaps, such as Dotswap, ordiswap, etc.
But everyone can’t wait, and they all want money to beget money, and then make money again. So just make a new chain, bridge assets over it, and let everyone continue to play the game of money begetting money.
At the same time, big funds (institutions and funds) can’t wait. They can’t be allowed to invest tens of millions or hundreds of millions in projects on the chain like us every day. The market can’t handle their money, and they can’t pull it back either. Face (they are all the ones who make the rules), so what should we do? Then invest in a chain that can lock everyone's assets, and do asset issuance together. At the same time, you can also bring a team to play together. These tens of millions or hundreds of millions will have a chance to be produced, and you will still have the initiative.
Bitcoin L2 does the above two things. It is essentially business, and it does not need to inherit the security of the main network to do the above two things. Frankly speaking, there is no need. Making money in business is the first priority. Who cares? what about this?
In conclusion, the responsibility of Bitcoin L2 is to increase the market value of the entire Bitcoin ecosystem and make money make money. It does not solve the main network congestion problem, nor does it solve the main network scalability problem (the main network can solve it by itself), so we also There is no need to worry about the secure connection between it and the main network anymore.
Of course, everyone is welcome to comment on my opinions.
