{"id":233788,"date":"2024-01-22T16:33:49","date_gmt":"2024-01-22T11:03:49","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=233788"},"modified":"2024-01-22T16:33:49","modified_gmt":"2024-01-22T11:03:49","slug":"developers-race-to-bring-evm-functionality-to-bitcoin-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/developers-race-to-bring-evm-functionality-to-bitcoin-crypto-news\/","title":{"rendered":"Developers Race To Bring EVM Functionality To Bitcoin – Crypto News"},"content":{"rendered":"
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While Bitcoin has recently dominated headlines following the launch of spot exchange-traded funds investing in BTC, critics have lambasted the network for failing to keep pace with innovation in the broader web3 ecosystem.<\/p>\n

However, an emerging cohort of projects are working on Bitcoin\u2019s Layer 2 networks boasting compatibility with Ethereum Virtual Machine (EVM) smart contracts, expanding the scope of utility offered by Bitcoin beyond payments.<\/p>\n

Layer 2 networks<\/a>\u00a0are built on top of an existing Layer 1 blockchain and leverage that network for transaction finality and security. Ethereum\u2019s Layer 2 ecosystem has posted meteoric growth in recent years, offering low-cost transactions while inheriting the security of the Ethereum mainnet\u2019s consensus layer. Ethereum L2s currently boast a total value locked (TVL) of $21.1B, according to L2beat.<\/p>\n

Conflux unveils plans for Bitcoin L2<\/h2>\n

On Jan. 18, the team behind the Conflux Layer 1 network became the latest project to join the fray,\u00a0announcing<\/a>\u00a0plans to launch an EVM-compatible Bitcoin Layer 2 in May following a testnet deployment in February or March.<\/p>\n

BTC will function as the Layer 2\u2019s native gas token, with BTC holders also able to stake the coin to participate in its Proof of Stake consensus and governance mechanisms.<\/p>\n

Smart contracts deployed to the network can also access events occurring on the Bitcoin blockchains. Conflux said the network will enable DeFi utility for Bitcoin-based assets such as\u00a0inscription tokens<\/a>.<\/p>\n

\u201cThe introduction of an EVM-compatible Bitcoin Layer 2 solution on Conflux opens up a realm of possibilities for developers and innovators in the blockchain space.,\u201d Conflux said. \u201cDevelopers can now build decentralized applications that seamlessly interact with all three spaces, unlocking new opportunities for cross-chain functionality and creating a more interconnected blockchain landscape.\u201d<\/p>\n

Bitfinity closes funding round<\/h2>\n

On Jan. 10, Bitfinity\u00a0announced<\/a>\u00a0it raised $6M through a round of token sales ahead of its mainnet launch in late January or early February.<\/p>\n

Bitfinity also plans to deliver an EVM-compatible Bitcoin Layer 2 based on the Dfinity Foundation\u2019s\u00a0Internet Computer Protocol<\/a>. Bitfinity hopes to foster a Bitcoin-secured DeFi ecosystem.<\/p>\n

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