The endgame of BTC Layer2 may be the interoperability layer

Author: MiX Source: X, @MixRestaking

The endgame of BTC Layer2 may be Bitcoin’s interoperability layer! I agree with @tmel0211 boss’s point of view with both hands

Bitcoin asset is the first engine of this bull market, and I think its prospects will revolve around the following structure Expand: Bitcoin issuance + cross-chain interoperability + smart contract DeFi on the execution chain.

So, my view is more extreme:

1. As long as you can The high-speed smart contract execution chains that accept and apply Bitcoin assets are all BTC Layer2. PS: To extend the time period, all blockchains after BTC were expansions of Bitcoin and were all Layer 2 of BTC.

2. BTC Native Layer 2 is a dojo built in a snail shell. It may be difficult to break through in the short term. The timing of narrative development is very important. If you miss it, you will not be able to come back. So whether it is from a builder's perspective or an investment perspective, I am looking forward to BTC's native Layer 2, but I am pessimistic.

If the popularity of Bitcoin assets is the first engine, it has shouldered the heavy responsibility of attracting new investors in this bull market. Then "modular blockchain" is the second engine of this bull market, and it is the key engine that is more powerful, long-lasting, and retaining.

The trend of modular blockchain has actually changed the architecture of the entire blockchain Internet. In the future, Bitcoin and Ethereum will be the two undisputed settlement layers. Chains link thousands of execution layer chains. Such a tree structure is causing major blockchains to abandon the ecological portal view and move towards integration.

Only with further integration can there be further composability and exponential innovations.

How to integrate? I have to look at "cross-chain interoperability" again.

- The assets issued by Bitcoin, whether they are inscriptions or runes, who can have the last laugh? The game of life and death depends on who can get out of Bitcoin first

- Under the modular blockchain, besides Bitcoin and Ethereum, who can take the lead in integrating into the tree structure of the above-mentioned blockchain Internet? You can reap the highest dividends of this bull market.

Yesterday, the full-chain cross-chain association #Omnity, which I have been looking forward to @louisliubj and led by Mr. Liu Yi, released Lightpaper. I think it really brings a suitable module. The cross-chain solution of the trend.

There are several particularly promising points:

1. For modular belts It is designed based on the new “tree-like blockchain Internet” architecture. For example, "the fungibility of tokens" is realized. On any execution layer chain, the same token that comes from across chains through different paths is replaceable and interchangeable. It is no exaggeration to say that this is a milestone breakthrough in cross-chain technology. This is an area that no one dared to touch in all cross-chain protocols in the past. The cross-chain gold standard IBC has only been studied.

2. The completely 100% decentralized Omnity protocol is implemented by smart contracts on the chain. Lightpaper describes it as: the first in the industry that does not rely on any off-chain process. , relayer or indexer, it is a completely 100% decentralized cross-chain network.

3. The core hub of this full-chain protocol is built on #ICP, and this security level is very sufficient. Compared with those solutions that build a self-built PoS chain as a hub and then build self-security, the security is directly maximized. PS: ICP deserves attention. Its unique architecture and features, as well as its natural support for Bitcoin full nodes, perfectly fit this bull market.

Then, the cost is extremely low and the delay is extremely low. As a new protocol, I think it is a good cross-chain experience, so I won’t say more.

Going back to the beginning of Bitcoin assets, the Omnity protocol gives priority to supporting #Runes assets, and also chooses to launch the Omnity protocol around the time of halving, which is around April. .

Lightpaper has not seen which ecology has been chosen for the cross-chain target chain. Keep paying attention, there must be a password here. What can be seen is that Runes assets cross-chain to the execution layer chain and do more DeFi business, which has the opportunity to directly start a bull market.