Recently, I had a chat with Kevin, the founder of GOAT Network, and his boss @ kevinliub about BTCFi. I was inspired by some of my viewpoints and judgments How to define Bitcoin Layer2? Safety is the primary prerequisite. GOAT divides the standard for Layer2 into 5 "mandatory options" and 3 "optional options" The 5 mandatory options are the hard standards for measuring Bitcoin Layer2, corresponding to the 5 core capabilities that inherit the security of the Bitcoin mainnet: -The transaction status of Layer 2 must be anchored and finally settled on the Bitcoin mainnet -If fraud or malicious behavior occurs on the second layer, users must be able to directly challenge it on the Bitcoin mainnet -There must be a permissionless mandatory exit mechanism -The bridge between Layer 2 and Layer 1 must be unmanaged and not multi signed -Layer 2 must uphold the core spirit of Bitcoin Three options are available to enhance user experience and system scalability: -A fast and efficient exit mechanism significantly reduces the waiting time for users to withdraw from the second layer to the first layer -Using BTC as a native gas asset -The economic incentive mechanism requires different roles such as Sequencer, Operator, Challenger, and Prover to fully engage in the game On the basis of security, where does the source of income come from? GOAT's economic design is based on BTC denominated gas fees, decentralized Sequencer architecture, POS mechanism, and a complete set of technology and business logic. On GOAT Network, Sequencer nodes are responsible for packaging transactions, generating blocks, and submitting them to the second layer. For each block processed, they receive corresponding rewards, including: -BTC priced gas fee paid by the user -MEV Reward -Additional mining incentives (GOAT Token) The core advantage is that the revenue is driven by on chain activities, that is, the more active the second layer is, the more blocks there are, the higher the Sequencer's revenue, and the higher the revenue returned to BTC holders, forming a virtuous cycle In addition to serving as incentives, the role of GOAT native tokens also includes: -GOAT and BTC form a dual asset pledge system, where BTC is used to participate in profit distribution, and GOAT affects block weight and network security -Profit gain factor, compared to pure BTC staking, adding GOAT staking has a multiplier effect -Network governance proposals and voting Finally, borrowing Kevin's words to forge ahead - "BTCFi has not really started yet, the real battle has not yet begun, and what happened before is just a prelude