Layer 2 Labs Raises $3M At Launch To Supercharge Bitcoin’s Ecosystem

Layer 2 Labs is introducing with the objective of scaling and developing out drivechains for the Bitcoin Network. The business has actually closed a seed round at launch, raising $3 million in financing.

Layer 2 Labs co-founder and CEO Paul Sztorc stated in a declaration sent out to Bitcoin Magazine that the company looks for to “make everybody worldwide a Bitcoin user.” Sztorc is the author of 2 Bitcoin enhancement propositions (BIPs), BIP 300 and BIP 301, which information the technical specs of drivechains. Naturally, drivechains are at the leading edge of Layer 2 Labs’ objective.

“Layer 2 Labs thinks that drivechains have the prospective to transform the method we utilize Bitcoin by allowing higher scalability, extensibility, personal privacy, and versatility on the network,” the business stated in a declaration. “We think that drivechains have the possible to eliminate altcoins, boost Bitcoin adoption, and offer the driver for hyperbitcoinization.”

Drivechains specify a particular method through which to develop Bitcoin sidechains. Sidechains are parallel blockchains to Bitcoin that allow BTC to “stream” in between the 2 networks in a two-way peg. Given that bitcoin can’t in fact leave the Bitcoin network, sidechains achieve this job by securing BTC on the Bitcoin blockchain and representing them in various methods the sidechain. The objective is that the representation of BTC in the sidechain keeps a 1:1 peg to the real BTC locked on the Bitcoin network.

Liquid is possibly the most popular sidechain in the Bitcoin environment today. Blockstream’s design leverages a federation to deal with the on-chain lock-up and withdrawals, along with sidechain block developments. Drivechains try to move far from the federated design in favor of something it considers more decentralized—- Bitcoin’s own miners.

See also  Bitcoin Soars to $19,000 Amid $380 Million in Liquidations

Under the drivechain design, bitcoin miners likewise mine sidechain blocks, albeit blindly. That is, the miner does not require to run software application for that particular sidechain, while accumulating from the worth being negotiated on that parallel chain. This is since many charges paid on the sidechain go to the bitcoin miners. Eventually, this likewise adds to higher cost profits in Bitcoin.

Drivechains enable almost any sort of chain to be developed and make the most of the two-way peg. This particular might enable performance present on any altcoin network to be indirectly ported to Bitcoin. Drivechains—- and sidechains at big—- in some method permit for bitcoin to be utilized on another chain, with various guidelines and residential or commercial properties. The advantage is the user would have the ability to do things with their bitcoin that isn’t possible on the Bitcoin network. The danger is the pegging system.

Sztorc stated the business has 3 overarching objectives. The very first, as pointed out, is the desire to additional establish and scale drivechains.

“We have 6 sidechain-designs in advancement currently, consisting of 2 which are specific clones of Ethereum and zCash (however BTC-only),” he stated in a declaration. “These permit instant worldwide scale, impenetrable user friendly personal privacy, and total flexibility (for users and designers).”

Second, Layer 2 Labs intends to enhance the user experience in Bitcoin, particularly around activities needed for really self-sovereign bitcoin ownership.

“We desire REAL bitcoin users—- users who run nodes, and hold secrets,” he included. “This needs a transformation in UX and education … which we intend to cause. Nodes ought to be simple to run and do helpful things that any layperson can comprehend and value.”

See also  HRF Bitcoin Development Fund Awards $325,000 In New Grants

Sztorc stated the company prepares to work on what he calls “high-risk, high-reward issues.”

“These consist of forecast markets and a reanimated Namecoin,” Sztorc stated. “These services will change media/telecommunications, simply as Bitcoin will transform Banking.”

Learn more