Money has pumped into 73 Bitcoin ‘Layer-2’ scaling solutions this year. But many are just insecure sidechains. There is a better way.
Soaring venture capital interest in Bitcoin layer-2 projects has brought into sharp focus whether the new scaling solutions truly deserve the classification.
Research from Spartan Group in December attributed the majority of Bitcoin layer-2 transactions to Stacks, Lightning, RSK and Liquid.
Bitcoin scaling has grown far beyond those four projects now, with 73 Bitcoin scaling solutions being developed with a combined total value locked of $3.61 billion as of June 7, according to BTCL2 data.
But despite the plethora of Bitcoin layer 2s and influencers pronouncing Bitcoin L2s as the hot new narrative, the label is contentious.
Thats because the structure of most self-proclaimed Bitcoin layer 2s is more similar to a sidechain, which is a blockchain that runs parallel to the native chain and doesnt inherit its security. True L2s arguably should run on top of the native chain and inherit its security.
