OKX Ventures, the investment branch of the cryptocurrency exchange OKX, has officially announced its investment in Bitlayer, the first Layer 2 solution for Bitcoin that offers Bitcoin-equivalent security using the BitVM construct. Bitlayer aims to enhance the functionality of the Bitcoin network by implementing the DLC scripting model, which utilizes blockchain and the BitVM technology Taproot to facilitate secure conditional financial applications.
“We are delighted to announce our strategic partnership with Bitlayer Labs, the pioneering Bitcoin Security-Equivalent Layer 2 Solution based on the BitVM Paradigm,” stated OKX Ventures in a tweet.
On May 20, 2024, OKX Ventures emphasized the philosophy and expansion of Bitcoin, highlighting its dominance as the leading cryptocurrency with over 15 years of market presence. Bitcoin currently holds 53.4% of the total crypto assets, amounting to a staggering $2.28 trillion. Ethereum follows with a 15.8% share and a total value locked (TVL) of over $90 billion, while Layer 2 solutions hold $39 billion.
Recent advancements in the market, such as Ordinals, Runes, and BRC-20, have contributed positively. Runes and Ordinals have market capitalizations exceeding $700 million and $33 million, respectively, and have generated approximately $418 million in total fees. With over 11.39 million active Bitcoin users seeking more ways to engage with the Bitcoin network, there is a growing demand for innovative solutions.
Dora Yue, the Founder of OKX Ventures, emphasized Bitcoin’s principles of decentralization and privacy. The investment arm has a history of supporting Bitcoin expansion through various strategies in its portfolio. Yue explained that Bitlayer addresses two critical challenges faced by Bitcoin Layer 2 solutions: confirmation by the Layer 1 network and the establishment of a trustless bridge.
OKX Ventures has committed $100 million to invest in blockchain ventures worldwide. Bitlayer has already launched its Mainnet V1 and has generated $179,600 in fees in the past month alone, contributing to the BitVM community. The platform has established multiple bridges connecting Bitlayer to other Layer 1 chains, including Bitcoin/EVM chains. Yue expressed enthusiasm for future developments on Bitlayer, including the integration of NFTs and other liquid assets.
Bitlayer can be considered the first Bitcoin Layer 2 solution based on the BitVM paradigm. Its primary objective is to achieve trustlessness and Turing completeness in Bitcoin’s Layer 2 by leveraging advanced cryptographic techniques and blockchain technology.
OKX Ventures aims to foster the growth of the global blockchain industry in a sustainable manner by investing $100 million in promising blockchain ventures worldwide.
Tags: BTC, OKX
