Conflux Network introduced an EVM-compatible layer-2 solution that can interact with Bitcoin amid growing interest in crypto’s largest blockchain.
Conflux claims that users can transfer assets powered by inscription and Bitcoin (BTC) between its blockchain and the Bitcoin ecosystem. The new L2 network will enable Ethereum-based smart contracts through the Ethereum Virtual Machine (EVM) standard, operate on top of the main Conflux chain, and charge gas fees in Bitcoin.
If all goes as planned, the mainnet launch is anticipated in May. A testnet hinted at at the end of March will try to attract early users and development participation before then.
Conflux is a layer-1 network in China that combines proof-of-stake and proof-of-work blockchain protocols. To provide new dapps and products, its BTC L2 solution will also use a similar architecture, as stated in a blog post on January 18. Conflux blog post:
“This paradigm shift unlocks new dimensions for Bitcoin’s utility, creating layers upon layers of interaction and application that extend beyond typical digital asset uses. By embracing BTC within our PoS protocol, which includes built-in staking mechanisms, holders can actively contribute to network security and governance on the Conflux platform.”
The excitement around inscriptions, ordinals, and BRC-20 tokens—a novel form of cryptocurrency that brings decentralized financing to Bitcoin—will be capitalized upon by the BTC L2.
Despite controversy, these cryptocurrencies have become more and more well-liked among users, and the market for them has expanded to be worth billions of dollars.
Furthermore, the Securities and Exchange Commission’s approval of U.S. spot Bitcoin exchange-traded funds (ETFs) is poised to draw significant capital to Bitcoin and potentially its expanding ecosystem.
In the first few days of trade, trade volumes and inflows in the billions have already been recorded for these spot Bitcoin funds.
