Bitcoin keeps smashing all-time highs, and the Bitcoin network is still the gold standard for blockchain security. But I often ask myself: ➦ If Bitcoin is already the pinnacle, why do we even need Bitcoin Layer 2s? Bitcoin’s security depends on miners, but halvings keep slashing their rewards. With fees alone, incentives weaken. ➦ The Solution? L2s fix this: more activity → more L1 settlements → more miner fees. Networks like @GOATRollup show how L2s can secure Bitcoin’s long-term future. They offload heavy computation while anchoring back to Bitcoin for final settlement. ---------------------------------------- ➦ Of course, shifting activity off-chain raises a key question: how do we trust it’s secure? Zero-knowledge proofs are the answer, but scaling zk inside Bitcoin’s environment has been tough. This is exactly where GOAT Network stands out. It runs one of the fastest zk virtual machines, with real-time zk proving that makes complex computations happen in seconds. And with...
New article published @TheBlock__: "Why Do We Need Bitcoin L2s?"
Highlights:
--The more transactions that happen on Layer 2, the more finality will be needed on the Bitcoin network…and miners will in turn benefit from all of those transactions. So a healthy and prosperous L2 ecosystem will bring in more transactions, and more revenue streams to incentivize security mechanisms.
--In the blockchain network, off-chain computations typically happen on Layer 2 networks. A Layer 2 network processes transactions for the Layer 1 parent chain, enabling faster and cheaper finality, with the Layer 1 network only needed for final verification and ledger recording.
--GOAT Network enables BTC holders to earn yield in BTC.
This, and much more, in the post below. Read on!
1.43K
0
The content on this page is provided by third parties. Unless otherwise stated, OKX is not the author of the cited article(s) and does not claim any copyright in the materials. The content is provided for informational purposes only and does not represent the views of OKX. It is not intended to be an endorsement of any kind and should not be considered investment advice or a solicitation to buy or sell digital assets. To the extent generative AI is utilized to provide summaries or other information, such AI generated content may be inaccurate or inconsistent. Please read the linked article for more details and information. OKX is not responsible for content hosted on third party sites. Digital asset holdings, including stablecoins and NFTs, involve a high degree of risk and can fluctuate greatly. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition.