Bitmap Tech releases Bitcoin L2, while Merlin Chain focuses on innovation in BTC native assets and protocols.

2024-01-19 20:38

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Just now, Bitmap Tech released their Bitcoin Layer 2 - Merlin Chain, which focuses on the native assets, protocols, and user ecosystem of Bitcoin Layer 1, and continues to innovate and amplify the potential of Layer 1 assets on Layer 2.

The Head Ecology of BTC Layer 1

Last month, Recursiverse was renamed to Bitmap Tech. The team has been deeply involved in Bitcoin Layer 1 for several months, with main products including Bitmap.Game (Bitmap Metaverse), BRC-420 Protocol (asset protocol based on modular data), and Recursiverse (product matrix based on recursive protocol). During this period, Bitmap's market value rose from $3 million to a peak of $290 million, and the core asset of BRC-420 (Blue Box) rose from a carving cost of $0.15 to a peak of $26,000.

Bitmap and BRC-420 have a large user base in the BTC L1 industry. Bitmap has over 30,000 holding addresses, while BRC-420 has over 1,000 developers. Mineral and This Song About NFTs are also among the most active assets traded on the OKX market.

At this time, Bitmap Tech launched the Bitcoin layer 2 solution Merlin Chain, and hopes to extend the assets and protocol innovations of the Bitcoin layer 1 to the layer 2, in order to find new asset breakthrough points.

Bitcoin Cross-Chain Bridge for All Protocols

According to the information currently released by Merlin, most mainstream protocols of Bitcoin's layer one will be supported, including but not limited to BRC-20, Bitmap, BRC-420, Atomicals, SRC20, and Pipe.

Meanwhile, due to the inability of Bitcoin's layer one to deploy smart contracts, the security of funds on Bitcoin's layer two will be of utmost importance. Merlin's cross-chain bridge will use Cobo's MPC multi-signature scheme to ensure absolute security of funds, and any unilateral security risks will not affect the funds on the chain. At the same time, Merlin's main chain and bridge will undergo security audits from more than 5 reputable firms, making it one of the most secure in the industry.

Bitcoin Wallet's Multi-Chain Solution

The first layer of Bitcoin is the UTXO model, and addresses are in formats such as Bc1q/Bc1p. Wallets include OKX/Unisat/Xverse. However, the second layer of Bitcoin on the EVM is an account model and requires addresses starting with 0x, and wallets such as Metamask are needed. Currently, most "Bitcoin second layers" on the market require users to switch to wallets such as Metamask to continue interacting, but the experience may be poor and seem to be using the Ethereum second layer network.

When Merlin Chain was building the second layer, they decided to use Bitcoin wallets to control it from the beginning. This means that users can use the same Unisat/OKX wallet on the first layer and the second layer, and transfers can be made to the same address.

This introduces the need for "account abstraction". In the collaboration between Merlin and Particle Network, the BTC Connect component was launched, allowing users to seamlessly use their Bitcoin wallet and address between layer one/two multi-chains.

Bitcoin's Dapp ecosystem

The emergence of the second layer is often to meet the needs that the first layer cannot satisfy. The advantage of Bitcoin's first layer is that the assets are secure enough and the issuance is fair enough, but the disadvantages are also obvious, that is, the lack of application ecology brought by smart contracts and high network fees. Merlin believes that BTC's second layer should not only be for cheap transfers or just for DEX, but should be based on BTC's native assets and protocols to further innovate and unleash its potential.

For example, how to build a game matrix around Bitmap as a completely decentralized asset, allowing Bitmap users to enter various metaverses at a low cost; or how to maximize the "dual nature of token" based on BRC420 in Defi gameplay, empowering NFT and FT bidirectionally; and the feature of casting inscriptions, how to cast assets at a lower cost and more flexibly on the second layer. Only these "Bitcoin-native" innovations can continue to empower the ecosystem, rather than simply copying Ethereum's gameplay.

Let Merlin be the starting point

The interaction of Bitcoin's first layer has a certain threshold for new users, which limits the influx of new funds. Merlin hopes that the second layer will become the "starting point" for users, where users can experience the native gameplay of BTC on Merlin, whether they deposit BTC or other tokens such as USDT/USDC/ETH/BNB.

The most attractive feature of the Bitcoin ecosystem for users is asset engraving. Merlin will integrate the first multi-chain engraving DApp, allowing users to engrave assets on the first layer, including Bitcoin, on Merlin's second layer. At the same time, the issuance/Launchpad of the most core assets on Bitcoin will also be available on Merlin, allowing more users to purchase assets such as BRC-20/BRC-420/Atomicals/Runes more easily and even more affordably.

In 2023, the Bitcoin ecosystem is like a thunderbolt on flat ground, with a combination of asset innovation, protocol innovation, and application innovation. Today, the market value of BRC assets is still only 0.5% of BTC, and everything is just beginning. More native Bitcoin innovations are waiting to be discovered.