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Plainly Bitcoin Script is extraordinarily underestimated.
Following the discharge of the Ordinals Protocol and BitVM whitepaper in 2023, perceptions about what is feasible on the Bitcoin base layer are altering, and it’s clear that Bitcoin is now absorbing demand from different blockchains within the broader cryptocurrency ecosystem. .
In fact, builders have had aspirations of including extra options to Bitcoin because the early days of the protocol's 15-year historical past. From early sidechains like Liquid and Rootstock to yesterday's L2, Bitcoin Journal has all the time coated respectable scaling initiatives.
Nonetheless, there’s a new wave of imitators who wish to make the most of these developments to market arbitrary crypto tokens. Amidst this Bitcoin L2 gold rush, the editorial board of Bitcoin Journal believes it’s essential to make clear our place on L2 protection.
To be eligible for protection, Bitcoin L2 should:
- Use Bitcoin as your base asset: L2 ought to be basically designed to make use of Bitcoin as its main token or unit of account and as a mechanism to pay charges for the system. If it has a token, it should be backed by Bitcoin.
- Use Bitcoin as a settlement mechanism to implement transactions: L2 customers ought to be capable of exit the system by means of a mechanism that returns unilateral management of their funds to Layer 1.
- Show useful dependency on Bitcoin: If Bitcoin fails utterly, and the system in query stays operational, then it’s our place that that system just isn’t Layer 2 of Bitcoin.
Protocols constructed on Bitcoin that don’t match into the Layer 2 class, however should be eligible for protection embody:
- Meta Protocol: Programs comparable to Counterparty (XCP) or Ordinals, are protocols outdoors the scope of the Bitcoin protocol, and exist and performance on Bitcoin Layer 1, however would not have their very own separate blockchain. Bitcoin Journal has traditionally coated information and occasions associated to such protocols, and can proceed to take action.
- 'Parasite' layers: These methods rely on Bitcoin to exist, and can’t operate independently with out Bitcoin, however don’t meet the opposite standards required to be thought-about Layer 2. Bitcoin Journal doesn’t cowl these protocols right now.
This coverage clarification doesn’t apply to our stablecoin or token protection selections.
Moreover, this relates solely to BitcoinMagazine.com and its print publication, and doesn’t signify the insurance policies applied by the Bitcoin Convention, Uncommon BTC or UTXO Administration, an institutional fund owned and operated by BTC Inc., and whose Bitcoin-based There could also be threat. L2S.