The Twitter Spaces organized by ThirdSet invited speakers from various Bitcoin Layer 2 projects to discuss the challenges of BTC L1, the role of L2 solutions, and the future prospects for the ecosystem. The speakers highlighted issues such as scalability, high transaction fees, and the need for better programmability. Projects like Hooked Protocol, Bit Smiley, ThirdSet, Pulsary Network, Space Zero, PaulxCat Game, and Merlin Chain shared their visions and plans for contributing to BTC L2 growth. The discussion concluded with the participants' shared enthusiasm about the potential of Bitcoin's Layer 2 solutions and the need for continual innovation and broader user adoption.

Bitcoin Layer 2 Ecosystem and Growth

Discussion Highlights

• Bitcoin Layer 1 Challenges: Key issues include limited transaction capacity leading to high fees and slow confirmations; scalability and extensibility are cited as significant obstacles.

• Layer 2 Solutions: The focus is on scalability, lower transaction costs, and improved programmability. Layer 2 (L2) solutions are being developed to address congestion and high fees on the main network while maintaining security.

• Future Prospects and Advancements: Anticipated advancements in the BTC L2 ecosystem explore new user experiences, with DeFi being an emphasis. The technical divide between Bitcoin's UTXO model and EVM smart contracts, and the need for more innovative native Bitcoin dapps, is highlighted.

• Use Cases and Applications on BTC Layer 2: There is enthusiasm for a diverse range of applications, including gamification to attract new users, DeFi protocols, NFTs, and more. AI integration is also foreseen as an influential factor.

• Hooked Protocol: Continues to establish itself as a web 3 social learning platform, expanding its reach and services in education and collaboration, and actively seeking more BTC Layer 2 partnerships.

• Bit Smiley: Works on native Bitcoin stablecoins on BTC Layer 2, aiming to simplify asset management and stability for users.

• ThirdSet: Operating as a project launch platform, supporting and facilitating new BRC20 projects in the ecosystem.

• Pulsary Network: Emphasizes its role in data social oracles and user acquisition, expressing its integrative role in the BTC community.

• Space Zero: Focuses on improving cross-chain interoperability and plans to launch a multi-chain-compatible bridge ecosystem.

• PaulxCat Game: Prepares to launch its Genesis NFT collection and a casual gamify experience to educate users about Bitcoin's legacy.

• Merlin Chain: Provides a platform for diverse ordinals-based dapps, targeting community-based asset development and fun user experiences.

Conclusion

Participants express optimism for the growth of Bitcoin Layer 2 solutions, identifying opportunities and acknowledging challenges. Collaboration between projects and the expansion of user-friendly applications are seen as key drivers for ecosystem growth.