Layer 2 Labs was launched with the goal of scaling and building the Bitcoin Network’s drive chain. The company completed a seed round at launch, raising $3 million in funding.
Layer 2 Labs co-founder and CEO Paul Sztorc said in a statement sent to Bitcoin Magazine that the company aims to “make every person in the world a Bitcoin user.” . Sztorc is the author of his two Bitcoin Improvement Proposals (BIPs), BIP 300 and BIP 301, detailing the technical specifications of Drivechain. Naturally, Drivechain is at the forefront of the Layer 2 Lab’s mission.
“Layer 2 Labs believes Drivechain has the potential to revolutionize how Bitcoin is used by increasing network scalability, extensibility, privacy and flexibility,” the company said in a statement. I’m here. “We believe Drivechain has the potential to kill altcoins, increase Bitcoin adoption, and provide a catalyst for hyperbitcoinization.”
Drivechain defines a specific way to create a Bitcoin sidechain. A sidechain is a Bitcoin-backed blockchain that allows BTC to “flow” between two networks with a two-way peg. Since Bitcoin cannot actually leave the Bitcoin network, sidechains accomplish this task by locking BTC on the Bitcoin blockchain and representing them in various ways on the sidechain. The goal is for the representation of BTC on the sidechain to maintain a 1:1 peg with the real BTC locked in the Bitcoin network.
Liquid is probably the most popular sidechain in the Bitcoin ecosystem today. Blockstream’s model leverages federation to handle on-chain lockups and withdrawals, as well as sidechain block creation. Drivechain is moving away from the federated model to what is considered more decentralized: Bitcoin’s own miners.
In the drivechain model, bitcoin miners blindly mine sidechain blocks as well. This means that miners do not need to run software for that particular sidechain, but arise from the value being traded on that parallel chain. This is because most fees paid on sidechains go to Bitcoin miners. Ultimately, this also contributes to Bitcoin’s increased fee income.
Drive chains allow you to make almost any type of chain and have bi-directional pegs available. This property allows functionality present in any altcoin network to be indirectly ported to Bitcoin. Therefore, drivechains (and sidechains as a whole) somehow allow Bitcoin to be used on another chain with different rules and characteristics. The advantage is that users can use their bitcoins to do things that the Bitcoin network cannot do. Risk is a pegging mechanism.
Sztorc said the company has three overarching goals. The first, as mentioned above, is the desire to further develop and extend the drive chain.
“There are already six sidechain designs in development, including two that are full clones of Ethereum and zCash (but only BTC),” he said in a statement. “These allow for instant global scale, impenetrable and easy-to-use privacy, and total freedom (users and developers).”
Second, Layer 2 Labs aims to improve the Bitcoin user experience, especially regarding the activities required for true self-sovereign ownership of Bitcoin.
“We need real Bitcoin users — users who run nodes and hold keys,” he added. “This requires a revolution in UX and education…we aim to make it happen. Node is easy to run and does useful things that the general public can understand and appreciate.” You need to do.”
Finally, Sztorc said the company has plans to tackle what it calls “the high-risk, high-reward problem.”
“These include prediction markets and revived namecoins,” said Sztorc. “These services will revolutionize media/telecommunications the way bitcoin revolutionizes banking.”
