Layer 2 Labs is launching with the purpose of scaling and constructing out drivechains for the Bitcoin Community. The corporate has closed a seed spherical at launch, elevating $3 million in funding.
Layer 2 Labs co-founder and CEO Paul Sztorc stated in an announcement despatched to Bitcoin Journal that the agency seeks to “make everybody on the planet a Bitcoin person.” Sztorc is the creator of two Bitcoin enchancment proposals (BIPs), BIP 300 and BIP 301, which element the technical specs of drivechains. Naturally, drivechains are on the forefront of Layer 2 Labs’ mission.
“Layer 2 Labs believes that drivechains have the potential to revolutionize the best way we use Bitcoin by enabling larger scalability, extensibility, privateness, and adaptability on the community,” the corporate stated in an announcement. “We imagine that drivechains have the potential to kill altcoins, improve Bitcoin adoption, and supply the catalyst for hyperbitcoinization.”
Drivechains outline a selected approach by way of which to create Bitcoin sidechains. Sidechains are parallel blockchains to Bitcoin that allow BTC to “movement” between the 2 networks in a two-way peg. Since bitcoin can’t truly depart the Bitcoin community, sidechains accomplish this job by locking up BTC on the Bitcoin blockchain and representing them in several methods within the sidechain. The purpose is that the illustration of BTC within the sidechain maintains a 1:1 peg to the precise BTC locked on the Bitcoin community.
Liquid is probably the most well-liked sidechain within the Bitcoin ecosystem at this time. Blockstream’s mannequin leverages a federation to deal with the on-chain lock-up and withdrawals, in addition to sidechain block creations. Drivechains try to maneuver away from the federated mannequin in favor of one thing it deems extra decentralized –– Bitcoin’s personal miners.
Beneath the drivechain mannequin, bitcoin miners additionally mine sidechain blocks, albeit blindly. That’s, the miner doesn’t have to run software program for that particular sidechain, whereas accruing from the worth being transacted on that parallel chain. It is because most charges paid on the sidechain go to the bitcoin miners. In the end, this additionally contributes to larger charge income in Bitcoin.
Drivechains enable for practically any form of chain to be created and benefit from the two-way peg. This attribute may enable for performance current on any altcoin community to be not directly ported to Bitcoin. Therefore, drivechains –– and sidechains at massive –– ultimately enable for bitcoin for use on one other chain, with completely different guidelines and properties. The profit is the person would be capable to do issues with their bitcoin that isn’t doable on the Bitcoin community. The danger is the pegging mechanism.
Sztorc stated the corporate has three overarching objectives. The primary, as talked about, is the need to additional develop and scale drivechains.
“Now we have 6 sidechain-designs in growth already, together with two that are precise clones of Ethereum and zCash (however BTC-only),” he stated in an announcement. “These enable for instant world scale, impenetrable easy-to-use privateness, and full freedom (for customers and builders).”
Second, Layer 2 Labs goals to enhance the person expertise in Bitcoin, particularly round actions mandatory for really self-sovereign bitcoin possession.
“We would like REAL bitcoin customers –– customers who run nodes, and maintain keys,” he added. “This requires a revolution in UX and training… which we goal to result in. Nodes must be straightforward to run and do helpful issues that any layperson can perceive and admire.”
Lastly, Sztorc stated the agency plans to work on what he calls “high-risk, high-reward issues.”
“These embody prediction markets and a resurrected Namecoin,” Sztorc stated. “These companies will revolutionize media/telecommunications, simply as Bitcoin will revolutionize Banking.”
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