Bitcoin’s Code Evolution Paves Way for Trust-Minimized Layer-2 Solutions
The real transformation of Bitcoin is happening in its code, moving beyond price speculation and ETF inflows.
Layer-2 Developments: BitVM2
- Bitcoin's technological evolution is centered on BitVM2, enhancing BTC's utility beyond just a financial asset.
- BitVM2 evolves from the original BitVM by transferring the integrity burden from a single verifier to a prover system.
- The new model allows for trust-minimized bridges and Layer-2 solutions without relying on federations or wrapped assets.
- Projects like Fiamma are developing EVM-compatible layers using BitVM2, enabling smart contracts with Bitcoin’s native security.
Market Dynamics and Liquidity
- Bitcoin has reached new all-time highs, drawing market focus.
- Trader Lennaert Snyder identifies significant liquidity pools beneath current levels, suggesting two potential paths: maintaining highs or flushing out longs before a reversal.
- The $113,500 to $114,800 range is highlighted as a crucial liquidity zone.
