Conflux, a blockchain compliant with Chinese regulations, launches EVM-compatible Bitcoin L2

10 months ago 64

BRC20 tokens can now be handled

Layer 1 blockchain “Conflux Network” announced on the 18th that it will launch Bitcoin (BTC) Layer 2 that is “EVM (Ethereum Virtual Machine) compatible”. The testnet is scheduled to be operational by the end of March, and the mainnet launch is targeted for May.

Big news! Introducing the new frontier of Conflux: a fully EVM-compatible space powered by BTC!https://t.co/Un8WzaTjh9

Conflux is launching an EVM-compatible Bitcoin Layer 2.
BTC will be the native currency for gas fee calculations.
Bridge diverse asset types from the…

— Conflux Network Official (@Conflux_Network) January 18, 2024

Conflux listed the following as the main features of Bitcoin L2.

BTC functions as a token to pay fees (gas fees)
Bridging different types of assets from the Bitcoin network
Send assets seamlessly to the Bitcoin chain

What is Layer 2 (L2)?

This refers to the “second layer” blockchain. Writing all transaction history to the main chain increases the load, leading to a decrease in processing speed and a rise in network fees. Therefore, by recording part of the transaction history on an off-chain or side chain, it can be expected to reduce the load on the main chain and improve processing speed.

Virtual currency glossary

By implementing EVM compatibility, BTC L2 can also handle token standards such as “BRC20” based on Ordinals.

Ordinal is a protocol that creates permanent digital assets on the Bitcoin blockchain, and is also known as the Bitcoin version of NFTs (non-fungible tokens).

connection: What is the current status of Bitcoin Ordinal and its competitors, which continue to attract investor interest, and the BTC ecosystem?

Conflux (CFX) is a crypto asset (virtual currency) project launched in 2018, and is a public blockchain that complies with the regulations of Chinese authorities.

It is known for combining PoS (proof of stake) and proof of work (PoW) algorithms to achieve consensus on the network.

connection: “Bitfinity” with EVM compatibility on Bitcoin Layer 2 raises $7 million

Achieving interoperability between various blockchains

Conflux described BTC L2 as a major step in enabling interoperability between various blockchains.

It leverages the strengths of Bitcoin and connects it to Conflux’s network with advanced features such as PoS-based staking.

This gives users more ways to interact with decentralized applications built on our platform.

Currently, the market capitalization of CFX is approximately 104 billion yen (approximately $700 million), and the circulating supply is 3.6 billion tokens.

connection:
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Recently, the theme of “Bitcoin’s EVM chain” has started to attract attention, and yesterday the SAVM token of another L2 chain “SatoshiVM” was listed on Uniswap.

Bitcoin ETF special feature