Original Title: "The Second Half of the BTC Ecosystem Competition: Who is the Optimal Solution for Value Storage?"

Original Author: Evan Lu, Waterdrip Capital

Since the Ordinals protocol gained immense popularity in 2023, it has sparked vigorous development within the BTC ecosystem. In just a year and a half, the BTC ecosystem has traversed the evolutionary path that ETH took over many years. By the end of Q1 this year, the 1.0 phase of the BTC ecosystem is gradually coming to a close. BTC's price has also changed from the usual summer slump, continuously breaking through $110,000 and $120,000 per coin, reaching new all-time highs; however, the market performance of BTC-related tokens on exchanges has been less than satisfactory. A technology's journey from proposal to development, implementation, and widespread adoption cannot be completed in just one year. Not to mention the challenges of implementing new technologies on the largest value storage network, BTC.

By observing the different technological paths within the BTC ecosystem, we can see that we are still in a developmental phase. The true prosperity of the BTC ecosystem is still far from being realized. Therefore, the competition for the BTC L2 route has only just begun.

BTC Ecosystem 1.0 and 2.0

Since BTC has been widely recognized as "digital gold," why is there still a need to promote the development of the BTC ecosystem? This is because the scripting language of the BTC network itself is extremely simplified, combined with the PoW consensus mechanism, which ensures a very high level of security and decentralization; however, it also limits the scalability and programmability of Bitcoin. As the underlying anchor asset of the entire crypto industry, there is still a significant amount of value in BTC that has yet to be fully unleashed. Imagine if only 10% of BTC (approximately 2.1 million coins) were used for DeFi, at a price of $100,000 per coin, it would release up to $210 billion in asset liquidity!

From the perspective of ecosystem composition, the BTC ecosystem can be divided into an infrastructure layer (L2) and upper-layer financial protocols (BTCFi); the following will mainly focus on the interpretation and comparison of BTC infrastructure technology paths.

In the 1.0 era of the BTC ecosystem, a typical feature is "TVL first" — first transferring BTC to the L2 network through asset bridges or custodians, and then deploying DeFi protocols on L2 to activate BTC's liquidity. This was also the approach of early ETH sidechains, with Polygon being a well-known representative; this is also very friendly to crypto users coming from the ETH era, as the logic is essentially EVM's L2 — except that the underlying network is BTC, allowing this technological path to quickly accumulate funds and user bases; however, the shortcomings are particularly evident: the security of BTC assets cannot be guaranteed.

The 2.0 era of the BTC ecosystem returns to the essence of technological innovation: how to achieve breakthroughs in security, efficiency, and native compatibility. From the launch of the Lightning Network's mainnet to the active promotion of technologies like ZK Rollup, RGB, and BitVM, we see more and more projects beginning to explore how on-chain native assets can achieve safer, more efficient, and more native yield and circulation on L2. For developers, this means a more promising space for innovation; for VCs, this represents an important turning point for the BTC ecosystem from "valuation-driven" to "PMF-driven."

Overview of BTC L2 Technology Paths

Based on the existing technology stack, several technology paths can be categorized as shown in the table below. However, if we delve deeply into each technology path and the projects they represent, we will find that even different technology paths may share the same solutions, and there may be subset relationships between different technologies and stacks.

Comparison of different technology paths for BTC L2, data source: https://worried-eagle-e5b.notion.site/BTC-21b34b2a8d7a80cb83c1d0021e3a5696

According to six well-known technology paths, this table visualizes and compares the TVL data and the technology solutions used by 15 BTC L2 projects:

Overview of BTC L2 development, data source: https://worried-eagle-e5b.notion.site/BTC-21b34b2a8d7a80cb83c1d0021e3a5696

It can be seen that the TVL of most L2s has significantly decreased due to market influences. Additionally, although the TVL data of the Lightning Network has increased compared to last year, the amount of BTC locked in the Lightning Network this year has undoubtedly decreased compared to last year's figures.

Overview of Different Technology Paths for BTC L2

The most orthodox L2 solution for BTC: Lightning Network

It can be said to be one of the earliest L2 solutions on BTC. Its basic mechanism is that users create a 2-of-2 multi-signature address on-chain, establishing a bi-directional payment channel, and ensuring that both parties can safely settle to the main chain with the latest state after multiple off-chain interactions through a Hash Time-Locked Contract (HTLC). Throughout the process, only two transactions to open and close the channel need to be written to the main chain, while a large number of intermediate transactions are completed off-chain, significantly saving block space and improving efficiency.

However, the early Lightning Network only supported BTC as a payment currency, greatly limiting the application scenarios. To address this, Lightning Labs specifically launched the Taproot Assets protocol (hereinafter referred to as TA protocol), which supports the issuance of native assets on the BTC network while seamlessly integrating with the Lightning Network. The TA protocol is based on BTC's UTXO model and the Taproot upgrade in 2021, with asset states recorded in a Sparse Merkle Tree (MS-SMT) structure, only writing the root hash of transaction data on-chain, ensuring the cleanliness of data on the Bitcoin main chain. Additionally, TA assets can also be embedded in Lightning Network channels for rapid transfer, realizing the vision of "circulating stablecoins on the Bitcoin network."

Moreover, not only stablecoins but also RWA assets and project tokens can be issued on BTC, and the BTC multi-asset trading network will truly be constructed with the introduction of the TA protocol.

Development Progress

As of June 2025, the Lightning Network has been online for 10 years, operating stably with over 16,000 nodes and 41,000 active channels; last year, when BTC broke $100,000 per coin, the total locked capacity had already exceeded 5,000 BTC. It currently maintains around 4,000 BTC.

Overview of Lightning Network data, data source: https://mempool.space/zh/lightning

In Q1 of this year, Tether, the company behind USDT, announced that it would issue USDT into the Lightning Network ecosystem through the TA protocol, indicating Tether's recognition of the Lightning Network.

Lightning Lab (the parent company of the Lightning Network) announces Tether's integration into the Lightning Network, data source: https://x.com/lightning/status/1885083485678805424

Additionally, the ecosystem based on the Lightning Network is gradually taking shape, such as the financial infrastructure protocol Lnfi, which aims to become the preferred platform for BTC and Taproot assets, covering the entire process of asset issuance, fundraising, yield, and trading. The core product, LN Exchange, has a daily trading volume of $30 million, and LN Node offers over 5% trustless BTC yield. Recently, Lnfi collaborated with Tether and Lightning Labs to discuss the opportunities and challenges of issuing stablecoins on the Lightning Network in X Space.

X Space of USDT ON LIGHTNING, data source: https://x.com/i/spaces/1vOxwXmjVbRKB

Furthermore, "AI Agent + Micro-Payments" is gradually building a new payment system relying on the security of the BTC network, with AIsa being a typical representative. Its principle utilizes the millisecond response characteristics of the Lightning Network and the strong security of the BTC network to solve the massive micro-transaction problem that traditional systems struggle to support. It provides real-time, efficient, and low-cost payment capabilities for AI service providers and enterprises. AIsa supports operations such as automatic micro-payments of only $0.0001 per API call, real-time settlement of DePIN nodes, and intelligent optimization of cross-chain paths, requiring almost no human intervention.

Limitations and Challenges

Although the Lightning Network has matured significantly in recent years, its scalability is still limited by network effects and channel path design, with limited network capacity. While the TA protocol has addressed the shortcomings at the asset layer, the requirement for users to build their own nodes to ensure security raises the participation threshold for users, and the completeness of the product still needs to be resolved.

For instance, BitTap provides users on the TA protocol with the right to self-custody wallets. BitTap focuses on solving the decentralization and usability issues of the Lightning Network and TA ecosystem. They have launched a decentralized browser plugin wallet and are about to launch a stablecoin payment wallet app, allowing users to make payments and transfers of stablecoins on both the Lightning Network and TA layers, while also supporting secure and free cross-layer transfers (Bridge) of stablecoins between the Lightning Network and TA layers.

Native Ledger Expansion: Bitcoin Thunderbolt

Just last month, the Lightning Network officially launched its mainnet, as disclosed in an official press release by HSBC. This marks the first time that a traditional financial industry authority has shown a positive response and attention to blockchain infrastructure represented by BTC.

Strictly speaking, the Lightning Network is not a traditional BTC L2 but a soft-fork compatible native ledger expansion solution based on the BTC mainnet. Its core technology lies in extending the BTC scripting language with the OP_CAT instruction, combined with UTXO Bundling technology, to achieve high-performance contract execution.

Similarities and Differences with the Lightning Network:

Unlike the Lightning Network, which requires payment channels to remain open for off-chain interactions, the Lightning Network adopts a non-interactive asynchronous design, allowing users to complete off-chain UTXO ownership transfers without direct trust or continuous connection. The key lies in introducing a Byzantine Fault Tolerance (BFT) Committee to manage Schnorr signatures, enabling off-chain delegation of asset ownership and on-chain final confirmation. Under the 3f+1 model, this mechanism can tolerate up to f malicious nodes, ensuring that transactions remain secure and consistent even in an asynchronous network.

Additionally, through UTXO Bundling technology, the Lightning Network can aggregate multiple UTXOs, achieving transaction speeds and efficiencies over 10 times that of the BTC network. In terms of asset protocols, the Lightning Network has proposed a unified standard for BTC layer assets called Goldinal, and with its developed BitMM (Bitcoin Message Market) system, it has realized a native on-chain AMM on the BTC network.

In design, the Lightning Network uses verifiable and adjustable signature components to implement a recursive off-chain UTXO transfer structure, operating through Bitcoin Core's native logic. This acceleration mechanism, starting from the main chain architecture layer, not only maintains the security and censorship resistance of BTC but also supports the transfer of BTC native assets, including BRC-20 and Runes.

Development Progress

The Lightning Network is driven by a group of OG miners, HSBC, BTC core developers, and contributors from the Nubit community, making it one of the few protocols in the current BTC tech stack with formal academic endorsement.

Currently, the Lightning Network is only accessible to users who have obtained a Boosting Code. This code is distributed in limited quantities by core contributors like Nubit through the community and comes with rare BTC native airdrop rewards.

As of mid-June, the Lightning Network's mainnet has nearly 50,000 users, with a total transaction count approaching 4 million:

Overview of Lightning Network on-chain data, data source: https://data.thunderbolt.lt/?new

Limitations and Challenges

The technology stack of the Lightning Network shows us another possibility for implementing BTC L2. Since the mainnet has not yet fully launched, its product PMF still needs market validation; on the other hand, while the BFT committee model is superior in security to traditional bridging solutions, whether it can gain widespread acceptance from the extremely decentralized Bitcoin community remains a question mark.

Merged Mining

Merged Mining is a technology that allows miners to mine multiple blockchains simultaneously without adding extra computational resources. Among them, Stacks and Fractal are two representative projects that use merged mining mechanisms, but they adopt different solutions in consensus mechanisms and block validation mechanisms. Stacks uses a unique "Proof of Transfer" (PoX) consensus mechanism. In this mechanism, Stacks miners send BTC on the BTC mainnet to bid for the right to generate Stacks blocks, and successful miners receive block packaging rights and corresponding mining rewards.

Bitflow is a DEX based on the Stacks mainnet, supporting trading of BTC, Stacks tokens, and various BTC native assets such as BRC20 and Runes. Additionally, Bitflow launched the first Rune AMM on BTC L2 based on Stacks in December 2024.

Core has made slight improvements to the consensus mechanism based on merged mining: Core's consensus mechanism is called Satoshi Plus, which combines Delegated Proof of Work (DPoW) and Delegated Proof of Stake (DPoS). The specific implementation principle is that BTC miners delegate their computing power to validators on the Core chain, thereby utilizing BTC's strong mining infrastructure to provide security for the Core chain. This portion of computing power is referred to as "Delegated Proof of Work (DPoW)," executed by Bitcoin miners and mining pools; at the same time, CORE token holders can stake or delegate their tokens to validators, participating in network security maintenance and governance. This portion of rights is called "Delegated Proof of Stake (DPoS)." Through this combination, Core Chain incorporates BTC miners into the security of Turing-complete smart contracts, unlocking these miners' functions and utilities beyond simple maintenance of the BTC ledger, and providing them with pure additional income rewards in the form of CORE tokens.

Fractal adopts a scaling solution, with its technical principle being the use of a recursive expansion structure to create multiple independently operating extension layers on the BTC mainnet, forming a tree structure to improve transaction processing capacity and speed. At the same time, Fractal retains the PoW mechanism while introducing a hybrid mining mechanism called "Cadence Mining," where for every three blocks produced, two are generated through permissionless mining, and the remaining one uses BTC's merged mining.

Additionally, Fractal Bitcoin has re-enabled the OPCAT opcode, which existed in early versions of BTC but was long disabled. The function of OPCAT is to concatenate two strings into one. Theoretically, a script using OPCAT can expand 1 byte of data into over 1 TB of content. Without strict limitations, this infinite expansion feature could be maliciously exploited for DoS attacks, potentially overwhelming nodes or causing network congestion. For this reason, OPCAT was disabled by the community in the early days. Now, the "purified" OPCAT adopted by Fractal provides developers with a more flexible script processing method, especially showing potential in on-chain large integer calculations and smart contract functionalities. Despite improvements in the technical mechanism, the reactivation of OPCAT may still pose security risks in extreme scenarios.

Current Development Status:

Fractal Bitcoin has currently taken shape, with a market capitalization of approximately $20.12 million, a daily trading volume of 1.43M FB, and over 1.76 million active addresses. Its merged mining computing power reaches 648.13 EH/s, with a mining difficulty of 0.01t, still in the early stages.

Overview of Fractal on-chain data, data source: https://www.oklink.com/fractal-bitcoin

RGB & RGB++

On August 7, 2025, the long-awaited BTC expansion solution RGB protocol finally launched on the BTC mainnet after two years of preparation.

RGB originates from a technical architecture proposed by the LP/BNP Association and is an off-chain asset issuance and smart contract protocol based on the UTXO model of the BTC network. One of the most praised technical points of RGB is that the data running on RGB is compressed and encapsulated into every UTXO on the BTC network. Through "Single-use Seals" and "Client-side Validation" mechanisms, it achieves private changes and validations of asset states. Each asset state is bound to a specific BTC UTXO, and when that UTXO is spent, the asset state is updated accordingly. This design allows for ownership and state changes of assets to remain private without being publicly disclosed on-chain, enhancing privacy. The RGB protocol is also compatible with the Lightning Network and has the capability to build DeFi logic.

RGB version 0.12 launched, data source: https://x.com/lnp_bp/status/1943318227854950809

Bitlight Labs: The First Wallet Supporting RGB Assets, Official Member of the RGB Association

Bitlight Labs is committed to leading the original BTC Fi by developing local smart contract infrastructure for BTC and the Lightning Network. It is not only a board member of the RGB protocol standard-setting association INP/BP but also a core contributor to the development of the RGB protocol, making it an indispensable core product in the RGB ecosystem.

The product under Labs — Bitlight Wallet is a wallet specifically designed for the Lightning Network and RGB protocol. Recently, it launched the first asset token "RGB" based on the RGB mainnet in conjunction with the official launch of the RGB mainnet.

BitMask Wallet:

Bitmask is the first wallet supporting NFT assets on the RGB protocol. The team behind Bitmask is also one of the earliest contributors to the RGB protocol, focusing on privacy and user asset control in product development. Recently, BitMask is still advancing the full interoperability of RGB and RGB++, and is currently preparing for the mainnet version launch to truly achieve the combination of privacy, programmability, and usability on the BTC network.

From RGB to RGB++:

Nervos (CKB) is a popular project that implements BTC L2 using RGB logic and has proposed the concept of RGB++. RGB++ introduces "homomorphic binding" technology, mapping BTC's UTXO to Nervos CKB's Cell, leveraging CKB's Turing-complete smart contract capabilities and on-chain verification mechanisms to enhance the efficiency and security of asset state management. In RGB++, asset state changes are recorded not only on the BTC chain but also have corresponding transactions and state verifications on the CKB chain, achieving collaborative verification both on-chain and off-chain.

Although RGB++ achieves asset mapping between BTC and CKB, the cross-chain interaction based on the characteristics of the RGB protocol still lacks simplicity in handling certain specific transactions, posing security risks.

Following the ETH L2 Approach: ZK-Rollup

The core of Rollup is to package a large number of off-chain transactions, generate cryptographic proofs (Proof), and submit them to the main chain for verification using ZK technology.

One of the Hottest BTC L2s

Merlin is a BTC L2 network that continues this approach and is also an EVM-compatible BTC L2. Merlin adopts a multi-party computation (MPC) wallet solution, jointly managed by Cobo (a cryptocurrency custody institution in HK) for user assets. Additionally, in terms of verification technology, Merlin still uses ZK-Rollup technology, compressing a large amount of transaction data before submitting it to the BTC mainnet, ensuring data integrity and security.

Since its launch on the mainnet, Merlin has become one of the most watched Layer 2 projects in the BTC ecosystem. Reports indicate that its total locked value (TVL) reached $3.5 billion within 30 days of launch, attracting over 200 projects to deploy and operate on its platform. Merlin Chain supports various BTC layer native assets, such as BRC-20, BRC-420, etc., and expands its ecosystem's breadth by being compatible with ETH.

Enhancing the Security of BTC Bridging

B² differs from traditional monolithic Rollups by adopting a "1.5 layer architecture": the Rollup layer is responsible for transaction execution and state updates, while the data availability (DA) layer operates independently and is responsible for storing raw transaction data. This data is periodically submitted to the Bitcoin mainnet after undergoing off-chain labeling and organization, achieving confirmation of finality.

The DA (Data Availability) layer of B² Network—B² Hub—belongs to Layer 1.5, where batch data is first processed with Reed-Solomon + KZG encoding slicing, and then the zero-knowledge proofs submitted by Layer 2 are aggregated into Taproot commitments submitted to the Bitcoin mainnet, inheriting the finality and immutability of the Bitcoin network.

B² Network employs a decentralized blob storage and light node sampling mechanism, allowing any validator to randomly sample a very small proportion of block slices to detect data completeness with high probability, significantly reducing synchronization and verification costs.

In terms of consensus, B² Hub only needs to submit brief commitments and validity proofs, relieving the mainnet of the burden of large-volume data. The Rollup batch publisher is responsible for availability, forming a modular architecture of "validity outsourcing + availability guarantee." By decoupling DA from the execution layer, B² Rollup can scale in parallel and update in shards, while the security boundary remains anchored to the Bitcoin chain, balancing high throughput, low cost, and L1-level security.

This approach has two benefits: one is the modular design, allowing for unlimited horizontal scaling without making any modifications or upgrades to the BTC network; the other is that through B² Network's DA layer—B² Hub, it can aggregate storage proofs and state transition proofs to submit to the Bitcoin network, integrating the security of the Bitcoin network.

However, since the final confirmation of L2 transactions requires prior confirmation and aggregation through B² Hub, followed by on-chain confirmation by the BTC network, it is considered a passive confirmation on the BTC network, falling under an optimistic model. Additionally, the zero-knowledge proofs aggregated into Taproot commitments for optimistic verification on the BTC network are still in the POC stage and have not yet been fully realized.

Project Progress: From Technical Implementation to User Ecosystem

As of now, BSquare's total locked value (TVL) has surpassed $600 million, with a peak on-chain daily trading volume reaching $900 million and 500,000 active users on the platform. The platform ecosystem covers over 100 DApps, encompassing scenarios such as DeFi, lending, and AI Agent applications.

Overview of BSquare on-chain data, data source: https://www.bsquared.network/

At the same time, BSquare has launched the first BTC yield mining pool, "Mining Square," which serves as a "balance treasure" for miners, providing a solution with native BTC yields. Currently, this mining pool has already captured 1% of the total network hash rate and ranks in the top 10 in terms of mining pool hash rate.

Implementing a Turing Machine with BTC Script? Decoding BitVM

BitVM is an extension protocol built on the BTC mainnet, with the core goal of supporting any verifiable computation in a general virtual machine environment without changing the consensus mechanism. Its principle draws from the idea of optimistic rollup: most computations are completed off-chain, and only in the event of a dispute are the relevant computation processes submitted on-chain in the form of "fraud proofs." Similar to Ethereum's Arbitrum, BitVM uses a mechanism of off-chain computation + on-chain verification, but its uniqueness lies in constructing "logic gate circuits" using Bitcoin's scripting system (Bitcoin Script), thereby simulating a Turing-complete virtual machine (similar to the human column computer of Qin Shi Huang in the Three-Body game).

BitVM does not directly run EVM or WASM on-chain but translates these high-level virtual machine operations into combinations of the most basic logic gates (such as AND, OR, NOT, etc.) in Bitcoin scripts, constructing a massive "fraud verification circuit." All transaction data and computations are processed off-chain, and only when a challenge occurs are the data and computation steps (in the form of Merkle Proofs, etc.) submitted on-chain.

BitVM2 is an optimized version of the original BitVM, introducing a more modular computation structure and circuit compression mechanism, while also incorporating interactive fraud proofs, time-lock scripts, multi-signature mechanisms, and other features to enhance the protocol's practicality and security. BitVM2 places greater emphasis on optimizing the amount of on-chain data submissions and attempts to introduce script opcodes like OP_CAT that may be activated in the future to improve circuit construction efficiency.

Current Development Status

Currently, the BitVM roadmap is gradually transitioning from theory to practice, with a representative project being Citrea, which executes a large number of transactions off-chain and submits the execution results and proofs to the BTC network for verification through BitVM. This has achieved efficient scaling and security for BTC L2. Citrea is also the first solution capable of achieving general L2 settlement on BTC, with all proofs verified natively within the blocks on the BTC network. As of now, Citrea's mainnet has not yet officially launched and is still in the testnet phase.

Projects like Goat Network are exploring the possibilities of BitVM2. Goat's white paper showcases a fraud proof mechanism based on circuit logic and Merkle tree structures. Goat emphasizes expanding computation on BTC into a Turing-complete state machine and attempts to construct a new BTC L2 framework that allows smart contract execution and asset interaction to be natively completed on the Bitcoin main chain. Goat's implementation also includes the integration of a data availability layer (DA layer) and circuit compression mechanism optimization, pushing BitVM from an experimental solution towards practical deployment.

As of June this year, Goat Network's locked value has surpassed $100 million.

Top chains by TVL launched each month of the year, CryptoDiffier; data source: https://x.com/GOATRollup/status/1929596963286114614

Although the advantages of the BitVM series of protocols are very clear: extreme native compatibility, achieving Turing-complete computation without changing BTC consensus, with high security and native properties; and its structure naturally supports fraud proofs, low data on-chain rates, and extreme decentralization.

However, the disadvantages of BitVM also stem from its technology: the logic gate circuits constructed from BTC Script to simulate EVM or WASM will inherently be epic in complexity and size, making the development complexity of BitVM extremely high and the workload for circuit construction very large. Additionally, there is currently a lack of a mature developer ecosystem and standardized tools.

Multiple Paths Progressing Simultaneously, the Battle for Value Carrying is Still Unresolved

Each solution for BTC L2 has its own focus in technical implementation. For example, the Lightning Network focuses on payment efficiency and has developed a mature node network over years, suitable for micropayments and off-chain settlements. RGB and RGB++ pay more attention to asset security, utilizing client-side verification mechanisms to ensure asset states. The ZK-Rollup route, due to its adoption of mature EVM solutions and modular security verification, currently possesses strong composability and cross-chain expansion capabilities, adapting more quickly to scenarios such as DeFi and AI Agents. BitVM further pursues extreme native properties, achieving smart contract capabilities on-chain without altering BTC consensus, representing an extreme attempt at BTC's computational capabilities, even though it is still in its early stages.

While the outcome is not yet determined, we can see that truly sustainable solutions must strive to meet three points: BTC native compatibility, verifiable security, and good support capabilities for upper-layer applications. Moreover, the trend of technology stack integration is becoming increasingly evident, such as the combination of the Lightning Network with stablecoins and the exploratory integration of ZK Rollup with RGB.

In the future, BTC L2 will certainly be a multi-polar competitive landscape, with different solutions serving various core scenarios: payment, contracts, assets, storage, AI, and more, collaborating to support the long-term prosperity of the BTC ecosystem. This competition is far from over; the true winners will be determined by asset accumulation capabilities and the developer ecosystem. As the world's strongest consensus asset, BTC's ecological boundaries will continuously expand due to the influx of dollar stablecoins and L2 modular innovations, ushering in a dual upgrade of "payment sovereignty + contract expansion."

Recently, with the implementation of the U.S. GENIUS stablecoin bill, it marks a gradual clarification and improvement of global stablecoin regulation. "Payment stablecoins" have been legally incorporated into the dollar system, which is expected to accelerate the entry of USDT, USDC, and other emerging stablecoins into on-chain payment scenarios. As Tether's CEO pointed out, emerging markets are the main battleground for stablecoin deployment, with 60% of USDT's growth coming from actual payment demands outside the crypto circle.

The GENIUS bill provides a clear legal pathway for the on-chain use of stablecoins and opens a compliant channel for BTC L2 to carry dollar assets. USDT, as the first stablecoin born on the BTC network, is now leading the way back into the BTC ecosystem. This not only represents a return to the technical route but also reflects BTC's strategic value as a settlement layer. It is foreseeable that if a stablecoin payment system is built on BTC L2 in the future, it will be the most native, secure, and aligned with the spirit of Bitcoin. With the composability and asset protocol capabilities of BTC L2, the BTC network is expected to accommodate the payment settlement needs of the real world, achieving a symbiotic pattern where stablecoin circulation and value accumulation are integrated.

References:

· https://eprint.iacr.org/2025/709

· https://riema.notion.site/Bitcoin-Thunderbolt-1d7f5aa90cdd803b8a73d080c83af098

· https://x.com/kevinliub/status/1919499375035756580?s=46

· https://www.theblockbeats.info/flash/289746

· https://lbank-exchange.medium.com/rgb-protocol-a-promising-approach-for-asset-issuance-on-the-bitcoin-network-after-brc20-357bd74f0c4c

· https://mp.weixin.qq.com/s/iMQPXFPWBpT9dQLyR8rzUg

· https://www.btcstudy.org/2023/09/12/the-potential-of-RGB-protocol/

· https://mp.weixin.qq.com/s?_biz=Mzk0OTYwMDM1Mg==&mid=2247487024&idx=1&sn=0241778d2e1fbed796a6beaeb3c07c4a&chksm=c21c27cca1e00c1d214dc01d1b6368b8e9198afa94d4bc16d5b5e1dadbd9402dd029a87747e9&scene=132&exptype=timelinerecommendarticleextendreadsamebiz#wechatredirect

· https://www.binance.com/zh-CN/square/post/23302994992353

This article is from a submission and does not represent the views of BlockBeats.

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