In a significant development for the cryptocurrency world, Conflux Network has announced the launch of an Ethereum Virtual Machine (EVM)-compatible Bitcoin Layer 2 solution. This innovative solution aims to address the scalability issues that have long plagued Bitcoin, the world’s most recognized and capitalized digital asset.
Big news! Introducing the new frontier of Conflux: a fully EVM-compatible space powered by BTC!https://t.co/Un8WzaTjh9
🚀 Conflux is launching an EVM-compatible Bitcoin Layer 2.
💰 BTC will be the native currency for gas fee calculations.
🌉 Bridge diverse asset types from the…
— Conflux Network Official (@Conflux_Network) January 18, 2024
Bitcoin, often referred to as ‘digital gold’, was initially designed as a secure and decentralized payment system. However, its limitations, such as slow transaction speeds, low throughput, and rising transaction costs, have always been an issue. Moreover, Bitcoin’s limited scripting language does not support complex smart contract functionality as Ethereum does.
The network is designed to harness the strength of Bitcoin and incorporate it smoothly into the system. It introduces advanced features like Proof-of-Stake (PoS) staking capabilities. This approach provides users with expanded avenues to engage with decentralized applications that are developed on our platform. Such an arrangement is crucial in attaining enhanced interoperability.
In the announcement made by Conflux, it was clarified that Bitcoin (BTC) will serve as the native currency for computing gas fees. Additionally, it emphasized the ease of transitioning between different asset types within the Bitcoin blockchain.
Conflux Network is Bringing Scalability and Programmability to Bitcoin
Enter Bitcoin Layer 2 solutions. These are protocols built on top of Bitcoin’s base layer, developed to provide scalability to the Bitcoin network by processing transactions off the main blockchain. They can solve other technical difficulties and provide additional functionalities to Bitcoin, such as enhancing programmability, improving privacy, or unlocking new utilities.
Conflux Network’s EVM-compatible Bitcoin Layer 2 solution is a game-changer in this context. It will enable seamless management of BTC and xRC20 tokens (such as BRC20 and ARC20) based on Bitcoin through smart contracts. Users can connect various asset types on the Bitcoin network or transfer assets to the Bitcoin chain.
This development is expected to improve Bitcoin’s overall performance while benefiting from its security and network effects. It will help overcome Bitcoin’s limitations around transaction throughput, block confirmation time, and transaction costs. Furthermore, it will enhance programmability through the implementation of complex smart contract functionality.
In conclusion, Conflux Network’s EVM-compatible Bitcoin Layer 2 solution represents a significant step towards unlocking the full potential of Bitcoin. It promises to bring scalability and programmability to the Bitcoin network, paving the way for a more efficient and versatile digital asset ecosystem.