The post Revealing the Growth of Layer 2 Networks appeared on BitcoinEthereumNews.com.

Bitcoin’s secure but rigid network is evolving with a Bitcoin Renaissance, as layer 2 projects unlock its value for broader Web3 and finance use, benefiting investors. Today’s guest, Matvii Diadkov, entrepreneur and Web3 expert, founder of Bitmedia.io and Chainers.io, expressed his thoughts on Bitcoin L2 networks growth. What is Bitcoin Renaissance Bitcoin, traditionally seen as a digital gold for value preservation and inflation hedge, has faced skepticism due to its slow transaction speeds, lack of programmability, and limited scalability. Yet, a new dimension of Bitcoin is emerging, drawing attention from investors and crypto enthusiasts. This Bitcoin Renaissance leverages the blockchain as a foundation for diverse Web3 apps, introducing more flexibility and scalability, and facilitating access to DeFi and Web3 applications.  This shift could mark a new era for Bitcoin, one that might be underappreciated amidst the buzz of price surges following significant events like Donald Trump’s election victory in the US. L2 Networks are on Rise L2 platforms are built atop primary networks like Bitcoin or Ethereum, aiming to improve scalability while leveraging the security of the base layer. Bitcoin introduced the concept with the Lightning Network in 2015, but L2s have found broader adoption with Ethereum, primarily to enhance its scalability. Despite Ethereum’s native ability to support numerous dapps and its dominance in the DeFi space—holding nearly 60% of the sector’s $130 billion total value locked (TVL) as of mid-November 2024—L2 solutions are still important in its ecosystem. Image source: https://www.bitcoinlayers.org/?status=Metrics Bitcoin’s L2 networks are expanding its utility with new features like smart contracts, enhancing its compatibility with Web3 and DeFi. This has opened up many apps, from instant, low-cost transactions via the Lightning Network to DeFi activities like lending and trading on platforms such as Merlin and Bitlayer.  In 2024, Bitcoin’s L2s experienced significant growth, with TVL jumping…

---

Filed under: News - @ November 27, 2024 2:25 pm