The Conflux team said it will launch a testnet of Bitcoin's new L2 by the end of QXNUMX. The mainnet launch is planned for May.
Conflux is developing a new Layer 2 solution that will combine the potential of the two largest blockchain ecosystems in the industry: Bitcoin and Ethereum.
The developers of the layer 1 network explained that “Bitcoin Layer 2”, as the new blockchain solution has been introduced, will be compatible with the Ethereum Virtual Machine (EVM), thus allowing users to connect different Bitcoin assets, including Ordinals inscriptions and BRC-20 tokens, with Ethereum smart contracts.
The solution will also allow users and developers to use BTC, the native cryptocurrency of the Bitcoin network, to pay gas fees in the new L2. BTC will also be used for Staking and securing the new chain through Proof of Stake (PoS) participation mechanisms.
With this development, Conflux seeks to expand the utility and use cases of the most capitalized cryptocurrency on the market today, as well as push the boundaries and innovation of the blockchain industry at large.
The Conflux development team, explained that Convergence of Bitcoin and Ethereum through the new L2 paves the way for greater adoption and innovation of cryptocurrencies and pushes the boundaries of what is possible within the blockchain realm.
Conflux is one of the most innovative ecosystems in the crypto industry, focused on scalability, performance, and security of blockchain infrastructure.
Combining PoW and PoS
Through Bitcoin Layer 2, Conflux aims to leverage the strength and robustness of the Bitcoin ecosystem and integrate it with the innovation of its blockchain ecosystem and the capabilities of Ethereum, currently the leading network for smart contracts and decentralized applications.
The developers commented that the launch of this new L2 solution, which is planned for mainnet next May, will mark “a significant step towards achieving greater interoperability between different blockchains.”
BTC as a native currency for gas payments and staking
Conflux’s new second-layer blockchain will also revolutionize the Bitcoin ecosystem, enabling the use of BTC as a native currency for paying gas fees and for PoS staking.
Conflux developers stressed that thanks to the new L2, Bitcoin owners and holders will be able to actively contribute to the security and governance of the network in the Conflux ecosystem, thus unlocking a new use case for BTC which goes beyond the typical uses of this digital asset.
Through L2 and EVM support, BTC and Bitcoin-based tokens such as BRC-20 and ARC-20 will be able to interact and be managed in smart contracts and applications in the DeFi ecosystem. All of this will foster the creation of more complex financial instruments, as well as the interoperability of the crypto ecosystem at large and the creation of new experiences for users. This development will also improve yield opportunities for holders of BTC and other Bitcoin tokens.
On the other hand, by leveraging Conflux's decentralized PoS infrastructure, the new L2 will provide a Strong and decentralized security, which will ensure the management of BTC assets in a secure and scalable manner.
CFX up 5%
The announcement of the development of Bitcoin Layer 2 has boosted the growth of the CFX cryptocurrency, native to the Conflux network, in the market.
According to data on cryptocurrency price monitoring platform CoinMarketCap, the price of CFX has increased by 5% over the past 24 hours. At the time of writing, CFX is trading at around $0,20 per unit.
Over the past 12 months, this cryptocurrency has appreciated by more than 700%.
Source: CoinMarketCap
Meanwhile, Bitcoin price continues to correct as the frenzy triggered by the approval of spot ETFs in the United States last week cools down. The market-leading cryptocurrency is trading above $41.100 per BTC, correcting almost 3,5% in the last 24 hours.
Still, the introduction of this new L2 chain marks an important milestone for the development of the Bitcoin ecosystem, adding to the wave of innovation that has been seen on the blockchain since the launch of Ordinals, and with it the introduction of NFTs, last year.
Bitcoin’s new L2 will not only unlock new opportunities for cross-chain functionality but will enable a more interconnected blockchain landscape, Conflux developers said.
The new Bitcoin L2 testnet is expected to be ready by the end of this quarter.
Continue reading: Bernstein Advises Investors to Accumulate Bitcoin Mining Stocks
