Bitcoin Layer 2: An Overhyped False Proposition

After深入研究 Bitcoin scaling technologies and长期跟进一些技术含量的团队, I arrived at a possibly controversial conclusion: BTC Layer2 is actually a false proposition. This view may offend some people, but it may just be stating a fact that everyone is reluctant to admit.

After in-depth analysis, I found that Bitcoin itself does not need Layer 2 solutions. On the contrary, the entire cryptocurrency industry needs Bitcoin. Layer 2 is essentially just a business model, rather than a real blockchain technology. More importantly, Layer 2 does not truly help the main chain achieve scalability; it merely finds some application scenarios for the main chain tokens, most of which are simple imitations of Layer 1 and lack innovation.

The BEVM team's shift has validated my thoughts. As one of the earliest teams to promote Bitcoin Layer2 in the Chinese-speaking region, they have recently completely denied this direction and instead launched a new strategy called Super Bitcoin. This 180-degree turnaround has led me to deep reflection.

Layer2: An Imagined Demand

The concept of Layer2 originated from the Simple Payment Verification (SPV) scheme mentioned in the Bitcoin whitepaper. The Lightning Network, which was born from this, has indeed achieved "scalability" for Bitcoin to some extent. However, while Layer2 solutions on other platforms like Ethereum can share the security of the main chain, they have not truly solved the scalability issue.

The UTXO model of Bitcoin allows for concurrent processing of transactions and local state changes, while Ethereum's unified account model relies on a global state tree for state updates. This fundamental difference prevents Ethereum Layer 2 from scaling the main chain capabilities as effectively as the Lightning Network.

The BeamChain proposal recently introduced by the Ethereum community incorporates SNARK technology, which can enhance verification efficiency but has not yet completely resolved the parallel processing limitations imposed by the account model. Essentially, Ethereum Layer 2 cannot help the main chain achieve true scalability.

Layer2: The business of the project party, unrelated to retail investors.

Almost all Layer 2 projects are centralized, lacking a true consensus mechanism and node concept. They are essentially private chains operated by a single sequencer controlled by the project party.

Layer 2 tokens often lack practical use: there is no demand for node staking, they are not used as GAS fees, and can only participate in limited governance. Meanwhile, the project parties primarily earn income by collecting GAS fees.

More and more business entities are beginning to build their own Layer 2, forming independent business closed loops. This model is far from the concept of decentralization and is difficult to form a true community consensus.

Bitcoin does not need Layer2, the industry needs Bitcoin

Bitcoin itself does not require an expansion plan. The success of projects like WBTC demonstrates that the real demand lies in bringing Bitcoin, this "digital gold," into other financial ecosystems.

In the future, the value of Bitcoin may surpass its positioning as "digital gold." Some believe that Bitcoin could become the currency for on-chain AI and a decentralized control system for AI consensus issues. This idea expands the application scenarios of Bitcoin into broader fields.

The Super Bitcoin project proposes an interesting concept: to view the Bitcoin network as a continuously growing decentralized state change machine, whose consensus capability can meet the increasing security and governance needs of humanity and AI in the future. This idea opens up new directions for the future development of Bitcoin.

Conclusion

Bitcoin Layer 2 has become an outdated and insignificant entrepreneurial direction. As Bitcoin gradually becomes a national currency reserve, its development has entered a new stage. The most promising entrepreneurial direction in the future should revolve around the Bitcoin network itself, exploring how to create greater value in an era where humans and AI coexist.

Exploring the potential of the Bitcoin network, rather than being limited to the BTC token itself, may be the greatest wealth left to humanity by Satoshi Nakamoto. This idea could open a new chapter in the development of Bitcoin.