More than 20 projects claiming to be Bitcoin Layer2 are currently under development in the market. However, there seems to be a growing divergence in the industry regarding the definition of “Bitcoin Layer2.”
Bitcoin Magazine recently published a press release emphasizing its definition of “Bitcoin Layer2.” The press release stated, “From the early stages of the Bitcoin protocol, developers have had ambitions to add additional functionality to Bitcoin. From the initial sidechains such as Liquid and Rootstock, to future L2 solutions, Bitcoin Magazine has been reporting on these reasonable expansion plans. However, a group of newcomers are seeking to capitalize on this trend by promoting arbitrarily issued tokens. In the midst of this Bitcoin L2 gold rush, Bitcoin Magazine’s editorial committee believes it is necessary to clarify its position on L2 reporting.”
Specifically, Bitcoin Magazine believes that projects defined as Bitcoin Layer2 must meet the following three criteria:
1. Use Bitcoin as the native asset: L2 must be primarily designed to use Bitcoin as its main token or unit of computation, as well as its payment system fees. If it has issued tokens, they must also be backed by Bitcoin.
2. Use the Bitcoin network as the settlement mechanism: L2 users must be able to exit the system through a mechanism, whether trusted or untrusted, that allows them to regain control of their funds on the underlying Bitcoin network.
3. Demonstrate functional dependence on Bitcoin: If Bitcoin experiences a complete failure and the (Layer2) system continues to operate, then our position is that the system is not a Layer2 of Bitcoin.
In addition, Bitcoin Magazine also mentioned two protocols that, although not meeting the definition of Bitcoin Layer2, may still qualify for media coverage or attention due to their characteristics and roles in the Bitcoin ecosystem.
1. Meta-protocols: Systems such as Counterparty (XCP) or Ordinals that exist and operate on top of the Bitcoin protocol but do not have their own independent blockchain.
2. Parasitic layers: These systems rely on the existence of Bitcoin and cannot operate independently without Bitcoin, but they do not meet the other standards required to be considered a second layer. Bitcoin Magazine currently does not report on these protocols.
It is worth mentioning that Spook, the technical editor of Bitcoin Magazine, believes that Stacks, a project considered as Bitcoin Layer2, does not actually meet the magazine’s definition of Bitcoin Layer2 because Stacks does not use Bitcoin as the native asset of its network.
In response, Muneeb Ali, the founder of Stacks, commented in the message section that after the Stacks network completes the Nakamoto hard fork in the future, sBTC (backed by Bitcoin) will be used as the medium for paying Gas, and these opposing opinions may be resolved.
According to a previous report by Zombit, senior Pantera executives have also discussed the essential elements necessary for the success of Bitcoin Layer2 projects in an open letter. These elements include:
1. Consistency with Bitcoin’s economy.
2. Feasibility without fundamental layer modifications.
3. Modular architecture.
4. Trust-minimized cross-chain bridges.
5. Proactive marketing efforts.
Although these five points are not specifically aimed at the definition of “Bitcoin Layer2,” they do overlap to some extent with Bitcoin Magazine’s viewpoint. This may serve as a criterion for future investors in the Bitcoin Layer2 space.
