Detailed explanation of Bitcoin's second-layer network currency

In the Bitcoin ecosystem, the second-layer network has gradually become an important part that cannot be ignored. With the continuous development and application of blockchain technology, especially in the field of Bitcoin, the emergence of the second-layer network provides new ideas and solutions to solve the scalability and transaction speed problems of the original chain. Bitcoin's own transaction speed and processing capacity are stretched in the face of growing user demand, so the emergence of the second-layer network has undoubtedly brought it new vitality.

Bitcoin's second-layer network mainly refers to a series of solutions built on the Bitcoin main chain, among which the most well-known is the Lightning Network. However, with the advancement of technology and the continuous exploration of the community, more and more second-layer solutions and related currencies have been born. This article will explore the various currencies in the Bitcoin second-layer network in depth, analyze their characteristics, application scenarios and future development potential.

As a representative project of Bitcoin's second-layer network, the Lightning Network has received widespread attention since it was first proposed in 2015. The Lightning Network allows users to conduct fast and low-cost transactions outside the Bitcoin main chain. This "channel" transaction method not only improves transaction efficiency, but also reduces transaction fees. Through the Lightning Network, users can conduct multiple transactions without having to upload every transaction to the chain, and finally write the final transaction results to the main chain. This model not only reduces the burden on the main chain, but also improves the user's transaction experience.

In the Lightning Network, users can use a variety of currencies for transactions, the most common of which is Bitcoin itself. However, as the Lightning Network continues to develop, more and more Lightning Network-based tokens are beginning to appear. For example, implementations such as LND (Lightning Network Daemon) and c-lightning support transactions with different tokens. The characteristics of these tokens circulating on the Lightning Network are that they can not only enjoy the efficient transaction experience brought by the Lightning Network, but also be combined with the security of the Bitcoin main chain.

In addition to the Lightning Network, another widely discussed second-layer solution for Bitcoin is the sidechain. Sidechains allow Bitcoin to be transferred between different blockchains, enabling more flexible application scenarios. For example, Liquid Network is a well-known sidechain project that allows users to transfer Bitcoin to the Liquid chain for faster transactions and smart contract operations. The token issued on the Liquid chain is called L-BTC (Liquid Bitcoin), which is pegged to the value of Bitcoin, but when trading on the Liquid network, you can enjoy higher speeds and lower fees.

In addition, RSK (Rootstock) is also a Bitcoin sidechain project worth paying attention to. RSK not only supports the transfer of Bitcoin, but also allows developers to build smart contracts on its platform. The token on RSK is called RBTC (Rootstock Bitcoin), which ensures the stability of its value through a 1:1 anchor with Bitcoin. Due to RSK's smart contract function, developers can create decentralized applications on its platform to further expand the application scenarios of Bitcoin.

In addition to the Lightning Network and sidechains, another emerging second-layer network solution is State Channels. State channels allow users to interact multiple times off-chain, and only write the results to the main chain when the transaction is completed. This method not only improves transaction efficiency, but also reduces handling fees, and is suitable for application scenarios that require frequent interactions. For example, fields such as games and decentralized finance (DeFi) can use state channels for fast transactions.

In the second layer network of Bitcoin, in addition to the currencies mentioned above, there are also some emerging tokens and projects that are gradually being recognized by the market. For example, the Stacks (STX) project provides a new decentralized application platform by connecting Bitcoin and smart contracts. Through Stacks, developers can build decentralized applications on Bitcoin while enjoying the security and stability of the Bitcoin network.

As Bitcoin's application scenarios continue to expand, the currencies of the second-layer network are also evolving. Each currency has its own unique advantages and application scenarios, and users can choose the appropriate token for trading according to their needs. Whether it is the fast transactions of the Lightning Network, the flexible application of the side chain, or the efficient interaction of the state channel, they are all important components of the continuous improvement of the Bitcoin ecosystem.

In the future, Bitcoin's second-layer network will continue to play an important role. With the continuous advancement of technology, more innovative projects and currencies will continue to emerge, providing users with more choices. In addition, as more and more companies and institutions begin to pay attention to and participate in the Bitcoin ecosystem, the currencies of the second-layer network will gradually be accepted by the mainstream. This will not only help increase the usage rate of Bitcoin, but will also further drive up its price.

Bitcoin's second-layer network currency is not only a product of technology, but also a reflection of market demand. When using Bitcoin, users often hope to enjoy a faster and cheaper transaction experience, and the second-layer network is born to meet this demand. In the future, with the continuous changes in user needs and the continuous development of technology, Bitcoin's second-layer network will continue to face new challenges and opportunities.

In short, Bitcoin's second-layer network currency has injected new vitality into the entire cryptocurrency market. Whether it is the Lightning Network, sidechain or state channel, each solution is supporting the future development of Bitcoin. With the continuous advancement of technology and the continuous maturity of the market, the second-layer network currency will play an important role in a wider range of application scenarios. For investors and users, understanding the characteristics and applications of these currencies will help them make more informed decisions and better grasp the market trends.

In this rapidly changing field, it is necessary to keep learning and paying attention. Whether it is a deep understanding of Bitcoin's second-layer network currency or a grasp of the dynamics of the entire cryptocurrency market, it is the key to the success of every participant in this digital economy era. The future Bitcoin ecosystem will be more colorful due to the continuous development of these second-layer network currencies.

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Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

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The market has always maintained a high level of attention to the construction of the Bitcoin ecosystem. In addition to waiting for the approval results of the Bitcoin ETF, it is also paying attention to the Bitcoin second-layer network. Previously, Jademont said that at least 10 Bitcoin Layer2 networks will be launched in 2024, which will push the construction of the Bitcoin ecosystem infrastructure forward in terms of traffic. For investors in the cryptocurrency circle, they are very curious about what coins are on the Bitcoin second-layer network? It is worth paying attention to. According to current information, there are mainly MAP
Protocol, Dovi, x.TAI, DFS and ELA, these five projects, the editor of Coin Circle will talk about them in detail.
 What coins are there in the Bitcoin Layer 2 network?
The five Bitcoin layer 2 network tokens worth noting are MAP Protocol, Dovi, x.TAI, DFS and ELA. The following is a detailed introduction to the currencies:
1. MAP Protocol
MAP Protocol is a Bitcoin Layer2 for peer-to-peer cross-chain interoperability. On December 7, MAP Protocol announced that it had obtained Waterdrip
Capital strategic investment. By utilizing the security mechanism of Bitcoin, MAP
The BRC20 protocol allows assets and users of other public chains to interact seamlessly with the Bitcoin network, which not only enhances network security but also realizes BRC20 cross-chain capabilities.
Via MAP
Protocol’s BRC-20 token cross-chain extension protocol BRC-201, BRC-20 and ORC-20 assets on the Bitcoin network can interact with other tokens on other public chains.
The native tokens of the protocol are MAP and MAPO, which are the same tokens but use different codes to distinguish the chains they are on.
2. Dovi
Dovi is an EVM smart contract-compatible Bitcoin Layer2 that aims to enhance scalability, reduce fees, and promote a more secure, decentralized financial ecosystem.
Dovi's application scenarios mainly include high-speed transaction functions, where users can make fast small payments, suitable for daily shopping and online services; developers can design and deploy complex smart contracts on the network without worrying about transaction speed and cost; enterprises can use Dovi for large-scale asset transfer and management; educational institutions and researchers can explore new applications of Bitcoin and blockchain technology in fields such as economics, computer science and sociology.
3. x.TAI
x.TAI
The Network is a Bitcoin second-layer expansion network based on AI encryption algorithm, which aggregates technological innovations such as AI, DeInfra, and Layer2, aiming to establish a development environment and ecology that fits the development of inscriptions.
On December 8, x.TAI released a live demonstration of the XRC20 protocol encryption process. It is the first protocol to bring the GRU and Lorenz hyperchaotic encryption system into the Bitcoin second-layer extended network. x.TAI has achieved a second-layer network environment with high privacy and low interaction costs through witness compression technology.
4. DFS
DFS Network is a Bitcoin Layer2 project under construction. After it goes online, various inscriptions issued on the Bitcoin network can be transferred to DFS.
Transactions can be conducted on the Network, and DeFi, games, etc. can also be built on it.
According to official information, DFS is DFS
The mainnet token of the EOS Network has a total of 10 million DFSN tokens. 1 million DFSN tokens are fairly distributed on the BTC chain, and 2.5 million DFS tokens are fairly distributed on the EOS chain. They will be mapped 1:1 to DFS tokens.
On the Network, the remaining 6.5 million will be released fairly through liquidity mining. The relationship between DFSN and DFS: 1DFS=1DFS, 1DFSN=1DFS+1meme(BRC-20).
5. ELA
Elastos plans to launch the Bitcoin Layer2 network BeL2, a move aimed at attracting Bitcoin transactions from the staking tools provided by the new platform. After the announcement, Elastos' native token ELA rose 56.2% in 24 hours.
BeL2 integrates the Elastos Smart Chain (ESC) with Bitcoin, which will allow for more complex Bitcoin transactions than the base Bitcoin blockchain, including smart contracts and irreversible digital agreements. These smart contracts are immutable and transparent and can operate without the need for third-party intermediaries.
 What is Bitcoin's second-layer network?
Bitcoin's second-layer network refers to the second-layer protocol or solution built on the Bitcoin blockchain, which is used to increase Bitcoin's transaction processing speed and reduce transaction fees.
There are many Layer2 solutions built on the BTC network, but unlike Ethereum, most Layer2 projects in the BTC ecosystem have various types of technical architecture designs. This is also due to the limitations of the BTC network itself. Developers cannot directly deploy Layer2 in the form of Rollup like Ethereum Layer2, and more often use side chains, state channels, etc. From a technical perspective, different architectures have different characteristics:
1. Rollup: The current mainstream Layer 2 expansion solution of Ethereum essentially transfers the computing process from the main chain transaction to the "Rollup chain". After the transaction is executed on the Rollup chain, the data is aggregated and summarized, transmitted to the main chain for verification, and stored to obtain the consensus security provided by the main chain.
2. State channel: The most typical one is the Lightning Network, whose concept is to open a "green channel" outside the Bitcoin network, conduct a large number of high-frequency, small transactions outside the blockchain, and put the final settlement data on the chain. The confirmation of off-chain transactions and payment channels are solved through technical methods such as RSMC and HTLC. Compared with solutions such as Rollup, it does not have an independent chain, but only a channel.
3. Sidechain: Based on the Bitcoin network, another chain is created. More smart contracts or other operations are performed on this chain. The interaction between the sidechain and Bitcoin is mainly for the sidechain to verify the information on the Bitcoin main chain and then perform subsequent execution. The sidechain is generally managed in the form of an alliance sidechain, with a high degree of centralization.
4. Client verification: Similar to the state channel, but client verification does not require all state transition processes to be verified by all nodes/miners on the main chain through repeated calculations. It only needs to use the main chain to ensure the security of the commitment. The main projects include: RGB, Taro, etc.
All the above content is an inventory answer to the question of which coins are available on the second-layer Bitcoin network. With the increasing transaction volume on the Bitcoin network, how to make Bitcoin carry more transactions and ecology is the current main development direction. It should be noted that the current scale of the Bitcoin ecosystem is still far behind that of Ethereum. First, there are fewer well-known projects than Ethereum, and second, the user scale is not as large as Ethereum. However, as the blockchain network with the highest market value, the ecological group derived from it still has great growth potential. In addition, there are certain risks in the tokens on the second-layer Bitcoin network. Investors should always pay attention to market development before deciding on investment directions.