AI-DOL Superstar Trading Battle is a premier trading and voting event aiming to support emerging AI crypto projects. Find out more about the five key AI mentors helping to shape the future of AI.

The AI-DOL Superstar Trading Battle is a premier AI-driven event hosted by Bybit. It serves as a launchpad for emerging AI-powered crypto projects, offering them a chance to secure a Bybit Spot listing and gain industry recognition.

A key element of the event is its mentorship program, through which leading AI projects provide strategic guidance to new entrants. These mentors offer expertise in AI-driven trading, governance and 

 (DApps), helping promising startups refine their solutions and achieve long-term sustainability.

What is the Bybit AI-DOL SUPERSTAR event?

The Bybit AI-DOL SUPERSTAR Trading Battle is a unique event that merges artificial intelligence (AI) with blockchain, creating a competitive space for AI-driven crypto projects to gain visibility and adoption.

This event not only fosters innovation in AI and blockchain, but also rewards participants who engage in trading and voting.

The mentorship program is a core pillar of the AI-DOL Trading Battle, pairing AI startups with experienced industry leaders. These mentorships help AI projects refine their algorithms, governance models and trading strategies — key factors for long-term success in web3.

Here’s a look at the five key AI mentors shaping the future of AI-powered crypto:

Luna by Virtuals (LUNAI) — the AI-driven digital performer

Luna by Virtuals is a livestreaming AI influencer built on Virtuals Protocol. Originally part of an AI-powered K-pop group, Luna has over 500,000 TikTok followers, showcasing that AI-driven personalities can thrive in entertainment and web3.

Luna by Virtuals demonstrates the power of AI in digital engagement, which explores AI-driven media, decentralized content creation and tokenized engagement models. This highlights the intersection of AI, blockchain and social influence in web3.

Top Hat (HAT) — the no-code AI agent builder

Top Hat is a Solana-based AI launchpad that enables anyone to create AI agents and tokens without coding expertise. It features simplified crypto analytics, algorithmic trading and token automation, making AI technology accessible to non-technical users.

Top Hat focuses on market predictions, algorithmic trading and smart contract automation. This empowers startups to develop scalable and efficient AI trading solutions for web3.

Cookie DAO (COOKIE) — web3 AI governance and data intelligence

Cookie DAO is a decentralized AI and data governance platform that optimizes AI-driven marketing, analytics and web3 intelligence. It allows 

 data, improving automation and decision-making.

Cookie DAO integrates AI-powered governance models and data analytics into its blockchain projects, thus enhancing scalability and transparency.

ai16z (AI16Z) — AI research fund and web3 incubator

ai16z develops AI investment strategies, funding models and AI-powered blockchain applications, helping emerging projects secure financing and navigate the AI-driven crypto ecosystem. Its AI-focused venture capital and incubation platform combines community-driven funding with AI-powered decision-making, giving it a significant role in accelerating AI adoption in web3.

Alchemist AI (ALCH) — AI-powered no-code development

Alchemist AI is a decentralized AI development platform that enables natural language-based application creation. By leveraging AI and blockchain, it allows users to build, deploy and monetize AI models without expertise in coding.

Alchemist AI optimizes AI training models, automation frameworks and decentralized AI applications, bridging the gap between AI research and real-world blockchain adoption.

The AI-DOL Superstar Trading Battle isn’t just a competition — it’s a launchpad for AI innovation. Mentors help AI startups scale their projects by providing expert guidance, advanced trading strategies and governance models.

Ready to join the AI-DOL Superstar Trading Battle? 

, trade and vote — and support the next AI revolution in web3 now!

Beginner

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Who are the Mentors in Bybit’s AI-DOL SUPERSTAR?

Trump unveiled plans for the Bitcoin strategic reserve and US digital asset stockpile, signing Executive Order 14178. Find out how this works and the implications for Bitcoin and the crypto industry.

The US government has proposed recent initiatives for both a bitcoin strategic reserve and a US digital asset stockpile in order to create a national reserve of cryptocurrencies. The executive order, signed by President Donald Trump on Mar 7, 2025, aims to secure the country’s place in the fast-evolving crypto space. The strategic reserve would include Bitcoin (BTC), the largest cryptocurrency by market capitalization, while the digital asset stockpile would include other digital assets apart from BTC. 

This article dives into Trump’s vision for crypto, reserve and stockpile details, cryptocurrencies involved, the potential impact on crypto markets and Trump’s broader initiatives for the cryptocurrency industry.

Since his inauguration, President Trump has enthusiastically embraced cryptocurrencies. His administration has rolled out pro-crypto policies to encourage growth and innovation. One standout move was appointing David Sacks, a tech and finance expert, as “AI and Crypto Czar.” Sacks is steering the US toward a crypto-friendly future, overseeing policies that would boost digital assets. 

Trump has been vocal about his ambitions, declaring on his social media channel Truth Social that the US will become the “crypto capital of the world.”

 plans for the Bitcoin strategic reserve and US digital asset stockpile ahead of the first White House Crypto Summit in January 2025. He signed Executive Order 14178, directing the presidential Working Group to establish this digital stockpile. Think of it as a strategic petroleum reserve, but for crypto — a way to secure valuable assets for the nation’s future. 

 highlighted the move on X, calling it a game-changer. The reserve signals the government’s belief in crypto as a long-term economic tool.

How would a Bitcoin strategic reserve work?

A bitcoin strategic reserve as established in the executive order aims to establish Bitcoin as a strategic asset for the US, similar to a 

, highlighting its potential as a store of value.

The reserve's capital would come exclusively from Bitcoin that the federal government already owns, which it obtained through civil and criminal asset forfeiture proceedings, such as seizures from illegal activities (i.e., drug trafficking, money laundering and cybercrimes). This ensures that no new Bitcoin is purchased with public funds for the initial reserve, and that there's no additional cost to taxpayers.

Estimates suggest the US government currently holds around 200,000 Bitcoin (worth approximately $16.5 billion at current market prices). However, a full audit is required, as mandated by the executive order, since there is no official accounting of these holdings.

Furthermore, the government of the United States has established a policy not to sell any Bitcoin that’s added to a Bitcoin strategic reserve. This policy intends to safeguard the value of Bitcoin over the long term, and to avoid financial losses that could occur from selling the cryptocurrency prematurely. 

 Sacks, previous instances of early Bitcoin sales resulted in losses exceeding $17 billion.

Finally, the executive order authorizes the secretaries of the Treasury and Commerce departments to develop “budget-neutral strategies” for acquiring additional Bitcoin, but only if these strategies impose no incremental costs on American taxpayers. This could involve mechanisms like using future forfeiture proceeds or other cost-free methods, but no specific plans or timelines for additional purchases have been detailed.

Alongside the main crypto strategic reserve, a new executive order was also established: the US digital asset stockpile, which would include other cryptocurrencies (beyond Bitcoin) seized through legal actions, as noted in 

Unlike the initial crypto reserve, it wouldn’t actively buy new assets, but would manage existing holdings responsibly under the Department of the Treasury. The goal (per the White House fact sheet) would be to centralize and maximize the value of these assets, ensuring proper oversight and avoiding past losses from premature sales.

 by roughly 5% to $85,000 on Mar 7, 2025, possibly triggered by the announcement and expectations of larger government purchases of BTC, or even a more aggressive strategy. Over the past week, Bitcoin has declined by 11.8% amid a broader market sell-off.

Trump isn’t just talking about crypto — he’s actually acting on it. Beyond the reserve, his administration has pushed forward, for example, with regulatory changes that include the dropping of multiple enforcement cases against crypto firms, easing the way for innovation.

Since Trump took office, the SEC has backed off from several crypto enforcement actions. Dropping these cases has lifted a cloud of uncertainty, giving companies room to experiment and grow. It’s a clear sign of a more relaxed regulatory stance, aligning with Trump’s push to nurture the crypto industry instead of stifling it.

Could these actions spark a global arms race for Bitcoin?

Trump’s crypto strategic reserve, now expanded with the Bitcoin strategic reserve and US digital asset stockpile, marks a defining moment for digital assets in America. 

By planning to stockpile Bitcoin and other seized assets, the US is staking its claim in the global crypto race and recognizing Bitcoin as a legitimate asset. This 

 to consider allocating capital to Bitcoin. 

 that this executive order is merely Trump fulfilling his obligations to the crypto crowd, arguing it’s more symbolic than transformative, akin to the 2021 

 launch, rather than the impactful January 2024 Spot Bitcoin ETF launch. Only time will tell if this move will herald a paradigm shift in global Bitcoin adoption.

bitcoin strategic reserve, digital asset stockpile

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Understanding Trump's crypto executive order: Bitcoin strategic reserve and US digital asset stockpile

In this article, we’ll delve into Bybit Pay to discover its purpose, benefits and robust ecosystem, which caters to individuals, merchants and businesses alike.

As cryptocurrencies continue to gain mainstream adoption, the one field where they still lag behind is in daily use. Most coins and tokens are treated as speculative assets or long-term investments, not as a medium of exchange. The biggest impediment to such adoption is the lack of payment solutions designed to seamlessly merge the advantages of cryptocurrencies with the reliability of the traditional banking system.

In order to change this situation, we need a payment solution that bridges the traditional banking system and 

 to provide a seamless payment solution for the end user. The world’s second-largest cryptocurrency exchange, 

, has launched Bybit Pay with that precise goal in mind. 

Traditional financial systems and blockchain-based ecosystems have long operated in silos, creating friction for users and businesses alike. 

 aims to bridge these barriers, allowing anyone to transact effortlessly across both worlds.

Bybit Pay supports payments in eight cryptocurrencies (including Bitcoin, Ethereum and USDT) and the Brazilian real, and has already integrated with 

 the popular BCB-created payment platform, with more integrations likely to follow in the future.

The biggest advantage of Bybit Pay is that it acts as a bridge between fiat currency and crypto. Bybit Pay allows users and merchants to conduct transactions without worrying about the technical and regulatory challenges that typically accompany crypto payments. By converting crypto to fiat (and vice versa) in real time, the platform ensures that both transacting parties experience minimal friction when a payment is made.

Bybit Pay also unifies merchants, payment processors and service providers worldwide through a single, integrated platform. For example, a retailer in Brazil can effortlessly accept payments via Pix’s local QR code–based system without needing to understand web3, since transactions are seamlessly processed through Bybit’s infrastructure.

Merchants who support Bybit Pay tap a user base of over 60 million Bybit users globally, a large and active community that creates a network effect to benefit customers and merchants alike. The platform’s seamless integration enables merchants to reach a global audience, breaking geographical barriers that often limit growth in traditional markets. Additionally, accepting cryptocurrencies allows businesses to stay ahead of the curve by being early adopters of a payment system that could potentially redefine financial transactions.

Bybit Pay enhances user experience by simple and easy integration with 

. This allows users to keep control of their digital assets, while bridging for traditional payments.

Traders can also use Bybit Pay’s collateralized payment tool to pledge their crypto and borrow the required fiat currencies. Together, these features provide users with the ease of use of traditional finance combined with the financial flexibility of cryptocurrencies. 

Bybit Pay has developed an impressive suite of ecosystem system products that reinforce its crypto payment advantages. These include:

Bybit Pay also provides tailored solutions for businesses to streamline crypto adoption. Its merchant acquiring system offers e-commerce platforms and other businesses low-fee cryptocurrency payment processing, and enables real-time settlements in both crypto and fiat currencies. 

For developers, the API Open Platform provides a flexible tool kit that allows them to embed Bybit Pay’s infrastructure into apps, websites or custom platforms. 

Together, these tools make it easy for businesses of all sizes to tap into the global crypto user base without overhauling their existing systems.

Bybit Pay also goes beyond payments to help users grow their assets, acting as a one-stop investment center that merges spending flexibility with earning potential. Bybit Pay lets users deposit idle funds into flexible savings products to generate yield. Yields vary depending upon demand, but as of March 2025, USDT deposited for a flexible term could generate a 6.45% yield on the 

. This dual functionality ensures liquidity for daily transactions while maximizing returns. 

To further incentivize engagement, the platform also offers exclusive discounts and cashback rewards on purchases, creating a loyalty loop that benefits frequent users. High–net worth individuals gain further advantages through 

. This includes elevated cashback rates, priority access to new features and tailored discounts on premium products. 

These layered incentives not only enhance user retention, but also position Bybit Pay as a complete financial ecosystem in which spending and wealth-building can seamlessly coexist.

In late January 2025, Bybit announced the 

. This service offers a cutting-edge payment solution and integrates seamlessly with Pix, Brazil’s leading payment system. 

To celebrate this launch, Bybit Pay is hosting a 

 from Feb 28–Mar 31, 2025, blending Brazil’s festive spirit with crypto incentives. Every time a user spends 50 USDT or 250 BRL via Bybit Pay, they earn entry into a prize pool featuring luxury gadgets like an iPhone 16 Pro or PlayStation 5, or thousands of USDT 

. The more you spend, the higher your chances of winning.

Bybit Pay has the potential to make cryptocurrency payments as simple as traditional fiat payments. By merging web3 flexibility with traditional payment infrastructure, it empowers merchants and users to transact globally without sacrificing familiarity or liquidity. Its recent expansions — such as its Brazil launch and Carnival-themed incentives — reward participation while demonstrating how easily the platform integrates into daily life. 

Users can take advantage of current initiatives by registering for the 

 event. Merchants who want to integrate Bybit Pay and benefit from its vast customer base can use the 

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Bybit Pay: Bridging the gap between traditional finance and the crypto world

MeshChain Ai (MCC) is a decentralized cloud network leveraging idle computing power for AI workloads, offering cost-efficiency, security, and scalability.

Cloud computing has been a game changer in many sectors, due to its cost savings, enhanced data security and the capacity to access data from anywhere on the globe.

However, most traditional cloud computing services are available in highly centralized data centers where control remains in the hands of a few. Such traditional infrastructure faces various challenges, such as single points of failure, cost inefficiency and threats to data privacy.

Against this backdrop, MeshChain Ai was created to leverage decentralization through 

 combined with AI to distribute computing power across the globe.

Let’s look at the way MeshChain is unlocking decentralized computing power to offer users higher latency, cost efficiency and enhanced data privacy.

 is a decentralized cloud computing network designed to provide AI workloads with a cost-efficient, secure and scalable infrastructure for their computing needs. 

With the high demand for AI services, most developers face the limitations of high costs and limited availability of computing resources to train AI models and perform computer-intensive tasks.

The project uses unused computer resources, such as idle CPUs, GPUs and RAM, to create a distributed platform that AI enthusiasts can then leverage without investing in costly infrastructure necessary for AI development.

Computing resource providers are incentivized to use MCC, the native token for the MeshChain ecosystem. Through these incentives, MeshChain can effectively fuel AI innovation by promoting a decentralized and cost-efficient cloud computing network.

In order to process AI workloads quickly and efficiently, MeshChain’s architecture is decentralized and powered by blockchain technology for transparency, security and scalability. Let’s take a deeper look at how MeshChain’s ecosystem operates.

To operate, MeshChain relies on a decentralized physical infrastructure network of computer nodes that act as resource providers on the platform. Its key components are as follows.

The system's core, the MeshChain Orchestrator, manages AI workloads between the various players. Once an Orchestrator receives a workload from an AI Engineer, it breaks it down into smaller chunks through a feature called Automatic Parallelization, and distributes these to Worker Nodes to process concurrently.

Automatic Personalization, an innovative feature of the platform, breaks down large AI workloads into smaller, manageable chunks known as workload shards. Worker Nodes process these shards in parallel to ensure fair and optimal use of available resources.

Apart from overseeing the system's workflow, the Orchestrator calculates the rewards for node providers once a task is completed.

Worker Nodes process workloads received from the Orchestrator. These nodes are equipped with computational resources to quickly process the AI requests. Once done, the Worker Nodes pass the intermediate results to Validator Nodes for processing.

Validator Nodes check the accuracy and integrity of the results generated by the Worker Nodes. This verification process is crucial to maintaining network trust.

Once the Validator Nodes have completed the verification, the outputs are passed to the MeshChain Aggregators. Then, they’re compiled and consolidated and passed on to the engineer who sent in the request. The Aggregator also passes the final output to the Orchestrator to facilitate the calculation and distribution of rewards.

A Resource Provider is a person who offers their computer resources to facilitate the processing of AI workloads on MeshChain.

You can become a resource provider on MeshChain in the following ways:

Some of the benefits of being a resource provider on MeshChain network include:

A Resource Consumer is an AI engineer or business who leverages MeshChain’s network to meet their AI workload needs. By being a Resource Consumer, you can send your AI requests, such as AI training and inferences, to the MeshChain network. In this way, you benefit from cost-efficient and secure AI development while also earning rewards for consuming the output from the network.

MCC is the native token of the MeshChain Ai network. It fuels all the transactions on the platform, ensuring a balanced flow between providers and consumers, as follows:

MCC has a maximum supply of 1 billion tokens, allocated as follows:

As of Mar 12, 2025, MCC’s price is $0.29, with a 24-hour trading volume of about $1.1 million.

MeshChain Ai is redefining the landscape of AI computing by shifting from centralized cloud infrastructure to a decentralized, distributed network. By harnessing idle computing resources across the globe, MCC provides a more scalable, cost-effective and censorship-resistant solution for AI model training and inference.

With enhanced security, lower operational costs and faster processing speeds, MCC enables developers, enterprises and AI enthusiasts to deploy AI workloads more efficiently than ever. As the demand for AI-powered applications grows, decentralized computing offers a future-proof alternative that empowers users with greater control and privacy over their data.

MCC represents the next evolution of AI computing, bringing together decentralization, performance and accessibility to drive the future of artificial intelligence.

Intermediate

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MeshChain Ai (MCC): The future of decentralized AI computing

Bybit Learn

Bitcoin

Bitcoin Layer 2 solutions help with scaling by selecting the information they pass back and forth. Learn more about them here.

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Bitcoin's position as the most popular cryptocurrency can be both an advantage and a problem for it. The Bitcoin ecosystem is one of the most secure and dependable options available, but having so many people rely on the Bitcoin network can also lead to congestion. During busy times of day, transaction speeds slow and 

. One potential solution to this problem lies in Bitcoin Layer 2 technologies. Keep reading to find out how these scaling solutions work, and to discover the best current Bitcoin Layer 2 options.

A Bitcoin Layer 2 solution is a protocol that runs alongside the main Bitcoin chain. It improves Bitcoin's scalability, so the network can handle large amounts of transactions without a reduction in transaction speed or an increase in transaction prices.

How Does a Bitcoin Layer 2 Solution Work?

Bitcoin Layer 2 solutions are essentially independent blockchains that contain Bitcoin-compatible 

 and software. They have the ability to process transactions, just as the Bitcoin network does. A Layer 2 accepts and manages a variety of transactions, such as payments, trades and data storage. With Bitcoin, the Layer 2 system is connected to the main Bitcoin chain, so it passes the record of these transactions to Bitcoin and can pull data from Bitcoin when necessary. It runs alongside Bitcoin, and is constantly updating to stay in step with the main chain.

Bitcoin Layer 2 solutions help with scaling by being selective about the information they pass back and forth. Instead of processing every single transaction on Bitcoin, one at a time, a Bitcoin Layer 2 processes transactions off-chain and only sends essential information to the main Bitcoin chain. For example, a Bitcoin Layer 2 that handles payments might only store payment confirmations on Bitcoin, instead of using the network for every step of requesting, transferring and receiving the payment.

Some Layer 2s make transactions even more efficient by bundling together information and posting it on Bitcoin as a single block, as opposed to several individual statements. Others use special algorithms to encrypt and compress information into smaller transactions. These sorts of features reduce the computing power needed for multiple transactions, making the whole blockchain ecosystem more efficient.

Pros and Cons of Bitcoin Layer 2 Solutions

Bitcoin Layer 2 solutions are just one of many scaling options. Here's what you need to know about the pros and cons of Bitcoin Layer 2 designs.

Bitcoin Layer 2 networks come with the following advantages:

Bitcoin Layer 2 networks do have some potential downsides to be aware of, as follows:

As one of the earliest blockchains, Bitcoin is one of the networks that needs Layer 2s the most. The base Bitcoin chain is missing a lot of the functionality found in other systems, such as Ethereum or Solana. Many users believe that Layer 2s are one of the best ways of modernizing Bitcoin and expanding its utility. They add additional programming options and features that users need for modern web3 systems. This ensures that Bitcoin can maintain its position as the premier blockchain, instead of being ousted by other chains capable of running modern trends, such as 

The most obvious impact Bitcoin Layer 2 systems have on the main chain is their ability to handle congestion. Every time a Bitcoin Layer 2 goes online, it helps tackle some of the unnecessary transactions that Bitcoin would otherwise have to handle. This results in lower transaction fees and higher transaction speeds for everyone who still uses the main chain. Research estimates that Bitcoin Layer 2 solutions can 

To better understand what a Layer 2 has to offer the Bitcoin ecosystem, it's useful to take a look at some examples. Here are a few of the most popular current Bitcoin Layer 2 options in the blockchain ecosystem.

 is one of the most popular Bitcoin scaling solutions. It uses a method called channels to more efficiently process transactions off-chain. This strategy lets users communicate with each other through an individual connection. Each channel lets a person send as many transactions as they'd like, back and forth, with only the final results recorded on the main chain.

Lightning Network's ability to increase transaction throughput is a benefit that’s mostly utilized for payments. Therefore, security is essential. It uses 

 (HTLCs) and multi-signature transactions to help users transfer funds and process payments without running into security issues.

The design of Lightning Network has proven to be efficient, with a processing speed of around 1 million transactions per second (

), while Bitcoin only has a TPS of around 10. Furthermore, the transaction cost for users working on the Lightning Network is usually just $0.001. Especially during the Bitcoin price surge of late Feb 2024, Lightning Network's services have been extremely valuable. Since Bitcoin has recently reported over 100,000 extra transactions per day, Lightning Network's scaling solutions have saved users a lot of time and money.

, which runs on the Rootstock chain, is another popular option. Rootstock is inspired by Ethereum virtual machine (

) scaling solutions. It's a sidechain that uses a proof of work (

 to simultaneously mine both Bitcoin and Rootstock (RSK). As transactions are validated, Rootstock bundles them and sends them to Bitcoin to merge the two chains' histories.

Rootstock is only slightly faster than the main Bitcoin chain. Its bundling methods allow some scaling, but the PoW mining method still slows it down. It tends to have a TPS rate of around 20 to 300, which at times is just twice the speed of Bitcoin. The main benefit of Rootstock outside of slightly increased transaction speed is its in-depth set of smart contracts. Developers can use Rootstock and the Rootstock Infrastructure Framework for a variety of storage, payment and naming solutions. It also offers a variety of helpful integrated features, including a rollup service and a wallet for users.

The current interest in Bitcoin has led to a lot of opportunities for Rootstock. Though most people don't rely on it for fast transaction processing, Rootstock's system has attracted the attention of traders who like using DApps to handle their Bitcoin. 

Bitcoin's price spike has also been promising for Rootstock's native token, which is called Rootstock Smart Bitcoin (RBTC). When BTC prices began to climb on Feb 25, 2024, RBTC prices also took off. The coin is designed to match Bitcoin’s price one-to-one, so its price always mirrors that of BTC. For those who help to maintain Rootstock’s network security by mining RBTC, this price spike has been quite favorable.

Liquid Network is a Bitcoin sidechain. It operates in parallel with Bitcoin and aims to increase scalability by sharing the computing power load with Bitcoin. Liquid’s native token, Liquid Bitcoin (L-BTC), corresponds to Bitcoin in price and helps to back the network’s transactions with reliable collateral. Users swap their Bitcoin for Liquid Bitcoin, conduct as many transactions as they desire on the sidechain and then turn it back into regular Bitcoin.

Liquid Network specializes in secure, private transactions. Unlike some other Layer 2 systems, Liquid has special protocols in place to ensure users' transactions are confidential and entirely safe. It also has smart contract capabilities with features such as trustless 

 between users. Many people choose Liquid when they're working with large amounts of crypto or a high volume of transactions.

Liquid Network's scalability has been useful for investors during Bitcoin's price spike. Its network has a TPS roughly double that of Bitcoin, but its real value is in the size of the transactions it can handle. Since it posts far more blocks per hour than Bitcoin, Liquid can handle vast sums of data. Up to 

 can be processed at a time, while Bitcoin can only handle around 450 vbytes per transaction. This makes Liquid ideal for busy times, when traders are buying and selling every few minutes to take advantage of minute price shifts, but don't want to pay pricey transaction costs.

 is a type of blockchain technology that relies on participation from community members known as Stackers, STX token holders who validate and approve blocks. The system’s proof of stake (

) system requires less computing power while still ensuring each block on the Stacks chain is valid. Stacks further scales Bitcoin by adding extra protocols to its blockchain. These smart contracts help to manage complex transactions off-chain, so less data needs to be transmitted to Bitcoin’s network.

Stacks is one of the Bitcoin Layer 2 systems that aims to mimic the design of the Ethereum blockchain, which includes the ability to design projects that wouldn't be operable on Bitcoin. People can design web3 products with ease on Stacks, and the Layer 2 then translates the more complex language into simple transactions that Bitcoin's base chain can handle.

STX's recent price movements provide a unique look at how Bitcoin's prices affect related chains. The token doesn’t match Bitcoin's price one-to-one, but it still follows the same general price patterns as Bitcoin. After sitting at around $2.50 for a year, STX soared to $3.34 when Bitcoin's prices started trending upward in February 2024.

This community-driven project aims to tackle several Bitcoin issues at once. By running an additional layer of smart contracts alongside the Bitcoin blockchain, 

 can process transactions off-chain, which speeds up the main Bitcoin chain by moving several essential types of transactions off-chain. Conflux uses a 

 that provides PoW and PoS systems to obtain a transaction processing speed of 3,000 TPS.

Conflux is one of the most versatile Bitcoin Layer 2 networks. Its system is fully EVM-integrated, so it can handle a broad range of assets. In addition to using Conflux to scale Bitcoin, you can also use it for transferring assets between chains and minting a variety of 

 and ARC-20 tokens. This makes Conflux ideal for users who want to run 

 (DeFi) projects or work with complicated smart contracts.

Since the February 2024 price surge, Conflux has been able to support a lot of DApps running on Bitcoin. People who rely on the blockchain for assistance with daily tasks, such as running a DeFi app, often struggle with crypto trends randomly bogging down transaction throughput. Companies that choose to rely on Conflux's decentralized finance services have found they can keep running smoothly, no matter how high Bitcoin's price goes.

, which means it's a blockchain that started out identical to Bitcoin and then gradually differentiated as its creators added more features. To help with scalability, Drivechain has multiple large-block sidechains. These chains process larger blocks of data, so they can handle larger transactions than the main chain can. The system also uses a type of security mechanism called a 

 escrow, which allows users to maintain token value as they move between the mainchain and the Layer 2 network.

Drivechain was created by LayerTwo Labs with the mission of improving user experience (UX) and reducing public reliance on non-Bitcoin tokens. The focus is on adding extra functionality that makes the main network more straightforward to use. Drivechain's mission also involves more experimentation: the LayerTwo Labs team believes that Bitcoin has stagnated, and wants its forks to become a testing ground for new innovations.

The Drivechain design offers several benefits for users during Bitcoins' price spike. It features payment channels that boast instant transactions without high fees. These fast transaction speeds are ideal for users who are rushing to purchase Bitcoin at the optimal moment. Furthermore, Drivechain offers some additional privacy features that are helpful for users who want to take advantage of BTC prices without compromising their identities.

Omni Layer is an open-source asset platform created by 

. It functions as a meta-layer of software that runs on top of Bitcoin. Its smart contract capabilities allow users to access a variety of DApps on Bitcoin. Omni Layer can leverage Bitcoin's security and processing power while also expanding Bitcoin's utility. One of the most unique methods it employs is altering Bitcoin transaction metadata. After processing transactions on the Omni Layer, the system takes bundles of transaction data and adds them to Bitcoin transaction metadata. This allows information to be stored on the main chain without needing to actually validate every transaction on Bitcoin’s network.

Omni Layer has many potential uses in the Bitcoin community. Originally, it was used primarily for trading and creating cryptocurrencies. Users can create 

 and then trade them with other members. Since Omni Layer is connected to Tether, its most popular coin is the USDT stablecoin. Because this Bitcoin Layer 2 has both scaling and programming capabilities, it's popular with users who want to extend Bitcoin's functionality as a tradeable coin.

 for Omni Layer. However, due to the market demand for USDT, Omni Layer has still played an important role in the Bitcoin price surge of 2024. Users can continue to redeem coins on Omni Layer until August 2024. While the network was stagnating, the impressive BTC price boost has encouraged many users to rush to Omni Layer and make sure they redeem their assets before the deadline.

Rollkit is a Layer 2 that uses a special type of scaling solution called a 

, sovereign rollups don't involve processing all transactions off-chain. Instead, Rollkit uses a blend of both the Bitcoin main chain and its own proprietary software to bundle rollups. This provides better security than some types of zero-knowledge proofs, while also ensuring that transactions are processed at a faster rate.

The Rollkit scaling solution is relatively new to Bitcoin. It was initially a Layer 2 designed for the 

 blockchain. However, its ability to take multiple transactions and bundle them into a single, compressed transaction has also attracted attention from the Bitcoin chain. Therefore, its developers decided to retrofit their technology and create a version that could leverage Bitcoin's security for processing transactions and extend Bitcoin's functionality.

Rollkit's services have attracted some attention in the wake of the Bitcoin price surge. As one of the only services offering sovereign rollups on Bitcoin’s blockchain, Rollkit is uniquely positioned to help developers. People looking for a faster and more efficient way of designing DApps may turn to Rollkit as the solution to their problem.

The Dovi Layer 2 network relies on the EVM for scaling, using the flexible design and smart contract capabilities of Ethereum to process Bitcoin transactions while lowering transaction costs. Dovi incorporates 

 to further improve security. These multi-signature authentications are ideal for confirming transactions in an efficient manner. Moreover, by optimizing block space, Dovi can process transactions more efficiently and speed up transaction processing times.

While Dovi does make the Bitcoin transaction process more efficient, its main aim is to improve the network's capabilities. Dovi contains a variety of flexible smart contracts that developers can use to create projects. It supports cross-chain communications and has an interoperable design that lets it run on multiple systems. This allows people to explore all of Bitcoin's classic services while also using more modern blockchain functionalities.

Dovi is still a fairly new Layer 2, so it hasn't had many chances to show what it can do yet. However, the recent pump in BTC prices has greatly motivated the Dovi community. Even though this Layer 2 hasn't assisted with many transactions during the price surge, its value has gone up a lot. Interest in BTC resulted in positive attention that gave the project's native token a chance to grow. DOVI tokens that were retailing for around $0.40 in mid-February are now worth around $0.60 as of early March 2024.

Many crypto enthusiasts believe that the 

 is increased programmability and functionality. There is a real need for Layer 2s that address Bitcoin's unique design instead of simply copying the scaling Layer 2s found on Ethereum. By offering more smart contract capabilities and programming options, Layer 2s could potentially allow developers to build more projects on Bitcoin. Potentially, the new Bitcoin Layer 2 explosion could help Bitcoin move beyond investing and payment processing and begin to focus on software and games instead.

Layer 2s on Bitcoin are also likely to lead to more integration with other projects in the future. 

 is a major focus for the web3 community right now, and the right Bitcoin Layer 2 project could make the network much more compatible with other systems. Not only can they work with web3 games, social media and exchanges, but Layer 2s can also make it easier to integrate Bitcoin into traditional financial systems. These implications could provide even more positive benefits beyond the scaling that Layer 2 systems currently provide.

Another trend to watch for in Bitcoin Layer 2 networks is a focus on user experience. Many developers are currently working on ways to make blockchain networks more accessible to the average user. Existing blockchains can feel overwhelming or confusing to people who aren't technologically proficient, but Layer 2s can help. By adding a cleanly designed user interface on top of the main Bitcoin chain, these technologies make it more straightforward to transfer funds or make payments. The most successful Layer 2s in the future may be the ones that do a good job of enhancing user experiences.

Ultimately, Bitcoin Layer 2 networks are an essential part of modern web3 development. If Bitcoin wants to maintain its position as one of the leading blockchain networks, it needs a way to process transactions quickly and affordably. Fortunately, many developers have decided to tackle Bitcoin's scaling challenge, so there are a lot of different Bitcoin Layer 2s for people to choose from when they want to reduce transaction fees and extend Bitcoin's functionality.

The Best Bitcoin Layer 2 Projects Fueling Bitcoin's Growth

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards