In recent years, attention towards layer two (L2) scaling solutions for Bitcoin has persisted, though bitcoin capacity in the Lightning Network has seen a decline. In recent years, other varieties of L2 solutions have emerged, capturing the attention of the crypto community. On March 19, 2024, the lead developer at Blockchair unveiled L2 Watch, an exhaustive compilation of active and in-development Bitcoin L2 networks.
The Landscape of Bitcoin L2 Solutions
Many are likely unaware that, since late November 2023 or over the last 90 days, the amount of bitcoin (BTC) held within the Lightning Network has decreased from 5,530 BTC to a present total of 4,730 BTC. Additionally, it’s highly probable that the existence of a broad range of other layer two (L2) networks compatible with the Bitcoin blockchain has escaped widespread notice. On March 19, 2024, Nikita Zhavoronkov, the lead developer at Blockchair, introduced a new web platform that features dozens of L2 solutions.
The list of L2s are broken down into various categories like Rollup, State Channel, Sidechain, Credit Mint, and Chaumian Ecash, among others. It also explains what stage the project is in for instance while some are on mainnet, others are in pre-testnet mode, and in testnet mode as well. For instance, AINN Layer2 (AIL2) is an EVM-compatible Bitcoin L2 project founded in 2023 that is in pre-testnet mode right now. Merlin Chain a sidechain is a L2 powered by Bitmap and it is available on mainnet.
26 Bitcoin L2 networks are in pre-testnet mode, 15 projects are in testnet mode, and 26 are mainnet deployed at the time of writing. Pre-testnet mode Bitcoin L2s include projects like Fedimint, Citrea, BL2, Mirror L2, and Side Protocol. Projects in the testnet phase include Rooch Network, BOB, Bool Network, Rosetta Network, Satoshivm, Rollkit, and Drivechain. Mainnet infrastructure includes Core DAO, Elastos, Stacks, Sovryn, Mintlayer, Libre, BEVM, and Biop.
Some of the projects have raised funds from investors from companies like Hashkey Capital, Okx Ventures, ABCDE, LD Ventures, Galaxy, DWF Labs, Andreessen Horowitz, Fenbushi Capital, and Blockchain Capital. Additionally, the Blockchair webportal highlighting the myriad of L2s shows whether or not the projects have explorers or dashboards to follow the network’s actions and performance. While a lot of L2s on Bitcoin have explorers several do not, at least according to the compiled list on l2.watch.
For an extended period, the Lightning Network has maintained its prominence within the discourse on Bitcoin’s L2 solutions, overshadowing a plethora of other alternatives. Numerous contenders aim to enhance Bitcoin’s scalability through diverse methods, yet, in contrast to Ethereum’s success with its L2 offerings, many of these Bitcoin L2 solutions have either struggled to gain momentum or remain in the very early stages of testing to establish their viability.
What do you think about the dozens of L2s out there for Bitcoin? Share your thoughts and opinions about this subject in the comments section below.
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