Bitfinity Network launches Bitcoin L2 with $12M backing

As a seasoned researcher who has witnessed the evolution of blockchain technology over the past decade, I find the emergence of Bitfinity Network both exciting and intriguing. The convergence of Bitcoin and Ethereum through an L2 solution is a bold move that could potentially unlock new possibilities for decentralized finance (DeFi).

As a researcher, I’m excited to share that the Bitfinity Network, a groundbreaking layer-2 (L2) innovation for Bitcoin, has officially gone live, backed by an initial investment of $12 million. The primary goal is to introduce Ethereum Virtual Machine (EVM)-like decentralized finance (DeFi) capabilities to the Bitcoin ecosystem, thereby expanding its functionalities and fostering greater interoperability within the crypto space.

2024 saw the project receive backing from investors such as Polychain and ParaFi, along with a $5 million worth of OTC token sales, mainly funded by the community.

According to a statement distributed to CryptoMoon, the Bitcoin Layer 2 is planning to leverage Internet Computer Protocol’s (ICP) Chain Fusion technology. This integration aims to allow Bitcoin-specific assets to function within an environment compatible with Ethereum networks.

With Bitcoin’s (BTC) price surpassing $92,000 lately and increasing interest in its practical applications expanding beyond being just a store of value, innovative Layer 2 solutions are unveiling fresh opportunities for the digital asset.

Backing from investors

In this funding round, we received a total of $7 million from well-known investors such as Polychain’s Beacon Fund, ParaFi Capital, Draft Ventures, and Warburg Serres. Additionally, other notable backers also participated in the round.

Backed by ordinary donors and key figures in the cryptocurrency world, an extra $5 million primarily sourced from our community is earmarked to boost both the utilization and advancement of the Bitfinity Network platform.

A representative from Bitfinity informed CryptoMoon that as institutional Exchange-Traded Funds (ETFs) approach and a fresh regulatory environment makes Bitcoin more institutionally friendly, the platform is experiencing a change in its operating environment.

“At Bitfinity, we’re […] pioneering a side-chain infrastructure layer to boost scalability, unlock cross-chain functionality, and broaden Bitcoin’s applications.”

Security improvements and DApp hosting plans

Bitfinity’s representative shared with CryptoMoon that their L2 network’s security is strengthened using a reliable Proof-of-Stake system, which employs the innovative Chain-Key technology.

“Chain-Key supports large signing committees capable of handling Bitcoin Schnorr and ECDSA transactions, offering stronger security than traditional multi-sigs used by most L2s.”

Additionally, the representative clarified that the ecosystem intends to accommodate decentralized apps (DApps), such as Sonic, Chaswap, Lendfinity, and Omnity Bridge.

“Bitfinity has backing from the founder of Liquity, which was a billion-dollar TVL borrowing and lending protocol, and we have plans to introduce similar solutions to our platform soon.”

Internet Computer usage up 13x

Due to the growing use of Bitcoin-related applications, there was a significant increase of 1,230% in the yearly utilization of the cross-chain messaging protocol Chain Fusion developed by The Dfinity Foundation, as reported on November 4.

The surge can be traced back to applications based on Bitcoin (BTC), such as Rainbow Protocol, Tap Protocol, and Bitfinity. These platforms leverage Internet Computer Protocol (ICP) to execute smart contracts and intricate programming on the Bitcoin network.

According to the Dfinity Foundation, Chain Fusion enables the creation of smart contracts for Bitcoin directly on the Internet Computer (ICP) platform, doing so without relying on intermediary or trusted bridges.

2024-11-19 13:11

Backing from investors

Security improvements and DApp hosting plans

Internet Computer usage up 13x

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