Bitfinity raises $7 million with EVM compatibility on Bitcoin Layer 2

Bitcoin layer 2

Bitfinity, Bitcoin’s layer 2 network, has raised a total of $7 million (1 billion yen), bringing its valuation to $130 million (19 billion yen). The Block, a media specializing in foreign virtual currencies, exclusively reported on the 11th.

The project is backed by prominent investors such as Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures.

In terms of funding, Bitfinity raised approximately $1 million in a seed round in 2021, followed by securing additional funding in a growth round completed last June. These two financings were both done through token investments, and were made public with the aim of increasing attention for the mainnet launch.

Bitfinity is currently in the testnet stage, with a mainnet launch scheduled for the end of this month or early February, according to founder Max Chamberlin.

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dApps deployment for Ordinals and BRC-20

The project is built on the Internet Computer Protocol and serves as Layer 2 for Bitcoin and other Bitcoin-issued assets (Ordinals and BRC-20).

Bitfinity allows you to deploy smart contracts written in Solidity (Ethereum’s programming language) for Ordinals and BRC-20. You will also have access to Chain-key Bitcoin (CKBTC), which is backed 1:1 by Bitcoin. CKBTC is a BTC derivative token distributed on Internet Computer.

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Bitfinity is also billed as a next-generation EVM with speeds of over 1000 transactions per second (TPS). “Bitfinity EVM enables the deployment of EVM dApps at 100x the speed and lower cost than Ethereum,” said Chamberlin.

Several dApps have already been built in the Bitfinity ecosystem, including Internet Computer’s DEX Sonic, Ethereum’s derivatives liquidity protocol Synthetix, and decentralized lending protocol Liquity.

Bitfinity details

According to Bitfinity’s documentation, the platform employs a threshold cryptographic scheme called “Chain-Key” that will be used to create a secure and decentralized bridge between Bitfinity and the Bitcoin blockchain. In this system, no node holds all the key shares alone; instead, new key shares are generated periodically through a special process called “moon-math.” This strengthens the security of the bridge and provides a more secure trading environment.

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