In our latest Learn 101 livestream session, we gathered an esteemed panel of crypto experts to share insights on whether BTC will soar to $100K by 2024.

The extreme volatility of Bitcoin and periods of strong growth throughout its history have created substantial wealth for many investors. Bitcoin breached $70,000 earlier in 2024, and many investors are eagerly awaiting price movement to $100,000.

, we ask, “Will Bitcoin Soar to $100K by 2024?”

, provides a recap of our Learn 101 livestreams, offering you comprehensive expertise and insights from leading figures in the crypto industry in case you miss the livestream.

Joining the livestream on Sep 11, 2024 were four distinguished guests:

Under the moderation of Sabrina Chua, Crypto Evangelist and SEO Editor at Bybit, this episode explores if Bitcoin’s price will reach $100K by 2024.

Bitcoin's Journey — Looking Back to Look Forward

At the start of the livestream, Michael Ionita created an automated trading order to demonstrate how easy it is. It remained running in the background until the end of the stream, when our guests reviewed the order.

Throughout the years, Bitcoin’s price has been influenced by the Jackson Hole Economic Symposium, government policy, ETF applications and other factors. Henrique Centieiro stated that short-term macroeconomics are impacted by the Federal Reserve. The economy is currently relatively shaky, and he anticipates more money will be printed. When this last took place, the stock market shot up, and Bitcoin’s price increased substantially. Centieiro attributes this to the level of increased money in circulation.

Referring to a chart that shows a correlation between lowered U.S. interest rates and Bitcoin’s price, Ionita demonstrated that increased money supply has boosted Bitcoin’s prices.

Jerry Li is bullish over the next six months. He reminded us that inflation weakens both the U.S. dollar and purchasing power, and as interest rates drop, he sees a correction in the crypto market that will positively affect Bitcoin’s price.

Centieiro stated that some people will take profits during the rate adjustment. He believes that the next month may be bearish, but there will then be a bull rush.

Ionita said that the market has been impacted by Russia’s new Bitcoin policy, asserting that this is bringing more funds into Bitcoin. However, many people in Russia are holding Bitcoin on a short-term basis because they’re making purchases with it. This makes Russia’s policy impact both bullish and bearish: Ionita maintains that other countries may act on this by prohibiting or limiting Bitcoin because of world events.

Meanwhile, Centieiro stated that the amount of money being kept on exchanges is at an all-time low, which means people are holding for a longer period of time. Bitcoin miners continue to invest in mining equipment. In addition, Michael Saylor has stated that Bitcoin’s price will reach 

Li drew attention to the fact that recently, hash power has increased dramatically, which is attributable to the entrance of more people and countries into the crypto market.

Ionita described the Bitcoin Spot ETF rally of 100%, attributing it to massive public interest. He believes BTC’s price is being heavily restricted because of this huge interest, and expects its price to rise by the end of October, based on the interest in Bitcoin Spot ETFs.

Centieiro said that there’s a lag as money managers decide whether to invest or not. Adding Bitcoin to a fund, even in small amounts, increases diversity and lower risks. He believes this is a win-win situation for money managers.

Li reminded us that Bitcoin will definitely reach $100,000 at some point, but nobody knows when. The upcoming U.S. election may drive its price up, but it could also bring greater volatility. Other catalysts may drive the price up as well.

Ionita referred to his screen again, saying that it’s hard to predict a price for something with multiple variables. However, he referred to the Fibonacci cycle for the current market, which reveals a Bitcoin price prediction between $200,000 to $300,000, adding that it’s impossible to predict the time frame. The average cycle time, however, is 1,069 days, which would extrapolate to the end of October 2025, but this time frame is fuzzy. He believes $200,000 is realistic for the cycle.

Centieiro described some price movement obstacles that have prevented Bitcoin’s price increase or slowed the time frame for BTC hitting $100,000 — the uncertainty of the U.S. election, for one. He also referred to a chart showing a lower flow in market-based mining activity. This indicates a type of magnet for the price. Centieiro also introduced a power log that shows BItcoin’s price should currently be around $90,000. He believes the current price is a pressure cooker, and the price will therefore greatly increase.

Zitane said the main risks that could stymie BTC price growth are regulatory uncertainty, economic instability and military conflicts, among others, directly affecting BTC’s price.

Ionita added that investors should get out of any risky asset in a downturn in order to prevent loss. He stressed the importance of understanding that both BTC and the U.S. dollar are preferred as investments in different situations, and showed a graph indicating that dollar-cost averaging (DCA) isn’t a wise approach for risky assets.

Li, however, stated that he uses DCA. He believes it’s a healthy strategy over a long period of time, due to his confidence that Bitcoin’s price will eventually go back up after a dip.

Centieiro agreed with Ionita that it’s not advisable to use DCA for an asset that’s going to zero. However, he doesn’t believe that Bitcoin will ever go to zero. Centieiro believes in DCA as a solid, long-term strategy to smooth out BTC market volatility.

Zitane has a simple strategy: he only uses DCA. He makes a purchase, and then buys again if the price goes down. He pays attention to the news, keeps buying when the price goes down and continues to reduce his average price.

Ionita reminded us that you can make more money with manual trading if you know what you’re doing. Most people aren’t professional traders, though, and can get wrecked in a bear market if they don’t stay on top of things. He recommends that these traders use an automated algorithm.

Smart Trading — Entering and Exiting with Confidence

Centieiro explained how he enters a trade: he buys BTC and holds it for at least a few years, looking for a relatively cheaper price as compared to previous prices. This is determined by a look at the 200-day moving average. He also looks at the Crypto Fear & Greed Index. Centieiro explained that investors must decide how long they plan to hold BTC 

 buying it. He invests a portion of his investment amount at one time, and spreads the rest of his investment out over several weeks.

Ionita, however, holds his BTC over several months. He looks at Fibonacci and other charts to invest funds in BTC and several other assets, based on risk. He maintains a specific allocation, with more allocation to the least risky assets.

This session of the Learn 101 livestream highlighted “Will Bitcoin Soar to $100K by 2024?”

As part of the livestream, Bybit is holding an 

 that offers you a chance to participate in our pop quiz and win a share of 300 USDT in airdrops. The event period is through September 18, 2024, 11:59PM UTC.

Stay tuned for more discussions on the dynamic world of cryptocurrencies!

Intermediate

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Learn Live ICYMI: Will Bitcoin Soar to $100K by 2024?

Self Chain (SLF) is a Layer 1 network that provides a cross-chain keyless wallet solution, along with modular intent-based transaction execution capabilities.

 can be tedious and frustrating, especially for beginners. At the same time, careful private key management is crucial if the user wants to avoid security breaches or the loss of access to their wallet. 

Wouldn't it be great if you could transact securely on blockchains using your social media logins while also enjoying the cryptographic protection features provided by crypto wallets? And without the need for private key or 

This is exactly what Self Chain (SLF), an innovative 

 blockchain project, offers to the crypto user community.

multi-party computation — threshold signature scheme

 (MPC-TSS), Self Chain offers keyless wallet services that let you transact across multiple chains and applications. Additionally, its solution comes with a large language model (LLM) intent-based chat assistant to find you the best deals and transaction options in the cryptocurrency world.

 (SLF) is a decentralized platform that describes itself as the first modular intent-centric access Layer 1 blockchain. 

It provides two key services: an AI-driven chat assistant that helps users carry out intent-based transactions, and a keyless wallet solution that facilitates multichain logins and transactions without the need for private key or seed phrase management. Self Chain’s Layer 1 network is based on the popular Cosmos SDK blockchain development framework. 

 (ATOM) ecosystem, Self Chain uses the delegated proof of stake (DPoS) block processing method, with validator nodes securing the network.

The project was initially called Frontier (FRONT). It began its network operations with the launch of an incentivized testnet in April 2021. In mid-2024, Frontier was rebranded to Self Chain and launched its mainnet.

Self Chain's AI chat assistant accepts voice and textual inputs from the user, and searches multiple blockchain platforms and 

 (DApps) to find the best possible deals. This service can be used in various areas, including 

 (DeFi). For instance, crypto gamers can use Self Chain’s intent-based search for the best deals on gaming 

 assets, while DeFi traders can instruct the assistant to find the best rates for specific coin swaps.

The platform's keyless wallet infrastructure service allows users to securely use email- and social media–based 

 logins to blockchain apps and platforms. This is enabled by splitting the wallet's seed phase into three parts, each stored separately — one encrypted on the user's device, the second encrypted and stored on the Self Chain network in a decentralized manner and the third reserved for wallet recovery purposes..

The platform's chat assistant is based on an LLM model that transforms user inputs into signed automated intent instructions. These instructions are passed to Intent Searchers, entities that scout the blockchain ecosystem for the best deals and most efficient paths for the intended transaction. Once the optimal source is found, Intent Searchers pass the request to intent solvers, whose job is to execute the transaction.

Blockchain DApps that aspire to become Searchers and solvers within the Self Chain ecosystem can use the Intent DSL SDK, a development framework offered by the platform. Using the SDK, DApps can integrate into the platform's architecture and translate user intent commands into executable searches and transactions.

The Self Chain keyless wallet service is powered by MPC-TSS technology, which permits splitting the user's private key, seed phrase or other secret identifier into multiple fractions, each stored independently to avoid a single point of failure. As a security technology, MPC-TSS predates blockchain, and can be applied in a chain-agnostic manner.

In Self Chain's implementation of MPC-TSS, there are three seed phrase fractions, with the two main ones — the Personal Share and the Remote Share — held on the user's device and the blockchain, respectively. When an operation is carried out, the Personal Share is matched against the Remote Share to facilitate the transaction. A network of MPC nodes encrypts the Remote Share in a distributed fashion to further enhance the security of operations.

The third fraction — the Recovery Share — is used solely to restore access to the user's device or add a new device.

Thanks to this chain-agnostic keyless system, users can retain the self-custody of their wallets, enjoy the security of the blockchain's cryptographic protection and use keyless logins on a myriad of platforms.

Self Chain lets users enjoy multichain account abstraction (AA), whereby wallets can carry out complex operations without you needing to worry about the specifics of underlying technology. For example, Self Chain–based wallets can execute bundled transactions, carry out cross-chain operations and optimize gas fees, all without user intervention.

What Is the Self Chain Crypto Token (SLF)?

During the project's mid-2024 rebranding from Frontier to Self Chain, its native cryptocurrency was migrated from the FRONT token on the 

 (BNB) to the SLF coin, native to the Self Chain's Layer 1 network. The migration was announced in late August 2024, and as of the time of this writing (Sep 16, 2024), FRONT holders can still migrate their tokens, with no specific conversion deadline provided by the project team.

SLF is used for a wide variety of functions on the Self Chain platform, including the following:

SLF has a total and maximum supply of 360 million. The coin's supply allocation shares are per the chart below:

The SLF coin is available on Bybit as a Perpetual contract with USDT (

). Under this contract, you can trade SLF with up to 12.5x leverage.

Self Chain's innovative system simplifies keyless multichain web3 access, while the versatile LLM assistant helps efficiently interpret user intent to conduct diverse transactions across networks. This is a functional set that few other projects in the industry can provide. In particular, the keyless wallet solution is something that truly sets Self Chain apart. 

While there are a few crypto projects that utilize an intent-focused approach and AI-based chat assistants, Self Chain’s keyless functionality is a rare feature that will undoubtedly attract interest from a variety of users. Navigating myriad DApps and networks and transacting on them without the need for meticulous private key management has just gotten a lot easier — all thanks to Self Chain and its implementation of MPC-TSS.

Advanced

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Self Chain (SLF): The Future of Secure Private Key Recovery

Stacks is integrating with the Aptos Network to bring Bitcoin's utility to decentralized applications through sBTC, a 1:1 Bitcoin-backed token.

The SPX index was up by 0.03%, with key sectors underperforming, including healthcare, consumer staples, and real estate, while energy, consumer discretionary, and industrial stocks outperformed. Coindesk Indices, an index measuring broader cryptocurrency market performance, was up by 2.95%, with Bitcoin and Ether rising by 3.62% and 3.16%, respectively, in the past 24 hours.

Today's top performer is SAGA, which surged 27.3% following its announcement of a new economic model focused on sharing in project success rather than charging gas fees.

Saga (SAGA), founded in 2021, is a Layer 1 blockchain protocol that allows developers to create customized chains for their applications, providing shared security and scaling solutions. 

 focuses on sharing in the success of projects built on its platform, rather than charging gas fees. Projects can launch cheaply on Saga's chainlets, and Saga takes a small cut of token activity once bridged through its infrastructure. As projects grow and their tokens become valuable, Saga can hold, use, or sell these tokens to fund ecosystem growth and buy back $SAGA tokens. This creates a network effect where success drives further success, positioning Saga as a key platform for value generation in web3.

Check Out the Latest Prices, Charts, and Data of 

 to bring Bitcoin's utility to decentralized applications through sBTC, a 1:1 Bitcoin-backed token. This integration allows Bitcoin to be used beyond a store of value, enabling participation in DeFi, gaming, AI, and social platforms on Aptos. The integration follows the resolution of an SEC investigation into Stacks, clearing the path for further Bitcoin scaling advancements. Stacks' recent Nakamoto upgrade has improved its transaction speeds and block production, facilitating this new cross-chain capability.

Yesterday, The total flow for BTC Spot ETFs was $186.8 million, with $0 from GBTC and $186.8 million from non-GBTC sources.

 on Optimism’s OP Mainnet, with 185 million WCT tokens being airdropped to users. The airdrop registration opens on September 24, targeting users who engage with WalletConnect or contribute to open-source projects. WCT tokens will drive WalletConnect's governance and economic structure, initially non-transferable until 2025. The newly formed WalletConnect Foundation will oversee the protocol's transition to a permissionless structure. WalletConnect aims to decentralize further and has seen 240% growth in the past year.

Beginner

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Stacks Integrates with Aptos, Expanding Bitcoin’s Utility to dApps and DeFi

Explore our article to find out what’s the Cipher Code for today’s Hamster Kombat’s Daily Cipher Code.

, where managing your crypto exchange meets the intellectual challenge of daily Morse code puzzles. Released each day at 7PM UTC, these puzzles do more than just test your mental agility; they offer significant rewards that can enhance your strategic influence in the game.

, challenging you to decipher a Morse code each day. Successfully solving these puzzles not only boosts your coin reserves, but also sharpens your critical thinking skills, enhancing both your gameplay and strategic planning.

Today’s Hamster Kombat Daily Cipher: Sep 18, 2024

 Daily Cipher for Sep 18, 2024, is as follows:

 —•••   ••   —•   •—   —•   —•—•   • 

Ensure each Morse code sequence is entered with precision and slight pauses between letters to confirm correct execution and secure your reward.

Gain an early advantage by trading HMSTR tokens through Bybit’s Pre-Market Trading. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

Today's Daily Cipher and the interactive gaming activities available within 

 provide ample opportunities to boost your coin balance and deepen your engagement with the game. Each puzzle you solve not only contributes to your financial growth, but also refines your analytical skills, making every gaming session both rewarding and intellectually stimulating.

Stay tuned for daily updates and expert strategies to maintain your competitive edge in the thrilling world of 

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A Guide to Hamster Kombat's Daily Cipher Code (Sep 18, 2024)

Crypto Insights

Bitcoin’s outperformance and popularity heighten the development of Bitcoin Layer 2. Learn how it works.

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Bitcoin Outperformance Leads to the Popularity of Bitcoin Layer 2

Bitcoin trading volume as percentage of total trading volume on Bybit.Source: Bybit

There’s no denying that Bitcoin has been in the driver’s seat of the broader market rally since late September 2023, as evidenced by its ever-growing dominance. The Bitcoin dominance ratio was steady at approximately 40% in 2022, but began to climb in 2023 to a level of 51.1% (as of this writing on May 7, 2024). 

The outperformance of Bitcoin, propelled by the approval of Bitcoin Spot ETFs in the U.S., has led to the popularity of Bitcoin trading as evidenced by the trading volume on Bybit, whose data suggests that BTC held by users increased by 18% on a month-on-month basis from March 2024 to April 2024. Moreover, the average trading volume percentage of Bitcoin as of total trading volume on Bybit has increased from 25.6% to approximately 31.8% as of the time of this writing. In our view, the popularity of Bitcoin trading has fueled the popularity of Bitcoin Layer 2s.

There is no consensus over the definition of a Bitcoin Layer 2. The term generally refers to a network that has a close connection with Bitcoin, aiming to improve Bitcoin's scalability, reduce transaction costs and add 

 programmability to the oldest blockchain network. In this article, we define Bitcoin Layer 2 as a separate blockchain network that connects to Bitcoin, either through bridges or other designs. Such platforms directly built on the mainnet of Bitcoin are referred to as Bitcoin protocols, including 

For detailed information on Bitcoin Layer 2 definitions, please refer to 

Bitcoin Layer 2 is still at an early stage of development. Only a few projects worked on Layer 2 solutions for Bitcoin before they became popular in early 2024. Bitcoin Layer 2 solutions have come to the spotlight since the popularity of Ordinals and Stacks in Q4 2023. 

The shift of focus into Bitcoin also comes as Bitcoin continues to outperform Ethereum and other alternative 

 as of September 2023, when the industry started to see hopes of Bitcoin Spot ETF approvals. The approval of these Spot ETFs reduces regulatory risks facing the Bitcoin blockchain, which adds to its competitive advantage against Ethereum, whose own Spot ETF approvals are uncertain as of May 2024.

What’s more, against the backdrop of the successful implementation of Ethereum’s latest road map and the popularity of Ethereum Layer 2s, the Bitcoin community has begun to explore the possibility of more utility for Bitcoin with the help of rollups and sidechains, the Layer 2 solutions that have been battle-tested in the past few years of development with other Layer 1s such as Ethreum and Avalanche.

As Bitcoin continues to gain attention, let’s explore the existing landscape of Bitcoin Layer 2.

Who are the existing players in Bitcoin Layer 2?

, there are currently 74 Bitcoin Layer 2 solutions, most of which have come into being in the past two quarters. Despite such a competitive sector, Bitcoin Layer 2s can generally be categorized based on the technology that each player adopts. In short, there are 

: state channels, sidechains and rollups. We’ll also cover Bitcoin-related protocols.

Bitcoin Layer 2 landscape. Source: Compiled by Bybit

A state channel provides a solution for enhancing scalability and efficiency in cryptocurrency transactions. These networks establish separate channels between transacting parties, enabling off-chain communication and state updates. A new channel is created between the parties involved in a transaction, serving as a communication layer that allows the parties to exchange information and update the state of their wallets off the main blockchain. State changes such as balance variations are recorded within the channel itself.

Once the communication session is complete, the channel is closed, and the final state, including the updated wallet balances, is submitted to the Bitcoin mainnet as a single transaction. Bitcoin miners then verify and incorporate this transaction, updating the network's state accordingly.

, which has been around since 2016 and endorsed by reputable Web 2.0 players, including Block’s Jack Dorsey. Major CEXs have also adopted the Lightning Network to reduce the transaction costs for users. 

State Channel Advantages and Disadvantages.Source: Compiled by Bybit

State channels offer several advantages. They enable faster transactions, since parties don’t need to wait for block confirmations on the main blockchain. Additionally, by batching multiple transactions into a single submission, users can save on transaction fees, especially when conducting multiple transactions within a single session. 

As highlighted in the above chart, in addition to the inherent security risk, Lightning Network’s capacity limitation prevents its mass adoption. Its capacity stands at 

 as of the time of writing, which is a minuscule fraction of Bitcoin’s daily transactions on centralized exchanges. 

Furthermore, the state channel is used for token exchange, which (due to the lack of a virtual machine) doesn’t have 

, a project that tries to add smart contract ability to Bitcoin by working with Lightning Network. Its team calls it a “partial-state smart-contract system” and offers the novel promise of addressing the inherent limitations of state channels. Yet, at the moment, we haven't seen the adoption of RGB's solution by major crypto primitives. That said, we’re excited to see how RGB might transform the state channel solution and provide a novel alternative to the more popular sidechains or rollup solutions. 

On a separate note, both Lightning Network and RGB don’t have their own native tokens, and thus, retail users likely won't invest in these two solutions in the near future.

A sidechain is an independent network that operates its own consensus algorithm while maintaining communication with the main network. 

To establish connectivity with the main network, sidechains employ bridges that facilitate asset transfers between the two networks. Smart contracts play a crucial role in governing the locking and minting of assets, ensuring proper asset movement between the sidechain and the mainnet. The design of sidechains can vary significantly, with some operating their own security systems separate from the mainnet while others integrate the security features of the main network.

The more established players in this field include Stacks, Liquid Network and Rootstock for Bitcoin’s sidechain solutions, while BEVM, Bouncebit, ANVM and Map Protocol, among others, are rising stars.

Bitcoin sidechain solutions.Source: Compiled by Bybit via DefiLlama and BTCL2.INFO

There are variations among these sidechains. Generally speaking, new solutions offer more comprehensive solutions, such as more advanced and Ethereum-compatible virtual machines, while the old players, such as Liquid Network, don’t own virtual machines. What’s more, some solutions introduce native tokens such as Stacks, while some adopt Bitcoin as gas tokens, such as Rootstock and 

. The adoption of a solution that’s more closely linked with Bitcoin is considered to provide greater security. 

It’s interesting to note that the new project AILayer currently sits with the highest TVL among all sidechain solutions, possibly due to anticipation around its airdrop and excitement regarding artificial intelligence (AI).

Rollups serve as an execution layer that works in conjunction with the Bitcoin network's consensus layer. Their main purpose is to enhance transaction processing. Rollup Layer 2 networks create an environment in which users can perform various operations. Transactions are organized into batches and sent to the mainnet's consensus layer for final settlement. A rollup batch can include up to 10,000 transactions, which are submitted as a single transaction to the mainnet's consensus layer for settlement. This bundling of transactions allows Layer 2 rollup networks to achieve faster speeds and reduced fees.

: optimistic rollups and zero-knowledge rollups. Optimistic rollups batch transactions without initial validation. However, there is a challenge period of approximately seven days to address security concerns. During this period, anyone can raise suspicions and provide proof of fraud to contest the rollup transaction. Once the challenge period expires, the batch is considered valid and is accepted on the Layer 1 chain.

Zero-knowledge rollups (ZK-rollups) conduct preliminary validations on each transaction using zero-knowledge validity proofs, eliminating the need for a challenge period. Consequently, transactions from ZK-rollups are instantly hashed onto the mainnet.

Bitcoin Layer 2 rollup solutions. Source: compiled by Bybit 

Ethereum’s ecosystem has been implementing both optimistic rollups and zero-knowledge rollups (ZK rollups) for a few years. Bitcoin’s Layer 2s benefit from the development, and there’s been a migration of those advanced Layer 2 technologies to the Bitcoin ecosystem.

It’s clear that ZK-rollups are more popular on BItcoin Layer 2s at the moment, likely due to their lower cost per transaction since there’s less data stored in each batch. Merlin Chain is so far the leader in this league with $1.1 billion TVL, staying ahead of its competitors following the launch of its mainnet and native token, MERL. Merlin Chain has the first-mover advantage, as a dozen DApps within the vibrant community have been up and running.

Network owns the second-largest TVL for Bitcoin’s ZK-rollup solutions, although as of May 2024, it’s only launched a testnet. We might see further inflows into the network as its airdrop plan and mainnet launch send the project buzzling.

Tuna Chain boasts dual architecture and a hybrid infrastructure of optimistic and ZK-rollups, setting itself apart from its competitors. As the first modular Layer 2 for Bitcoin, it has adopted Celestia’s data availability solution and plans to launch its own stablecoin in the second half of 2024. We haven't seen such a dual structure in the Ethereum ecosystem, so it’s interesting to observe how it pushes the limit of the two mainstream rollup solutions.

As mentioned, Bitcoin-related protocols, including Mirror, Runes and Ordinals, don’t have their own blockchain networks. Instead, they’re 

 to the Layer 1 network, i.e., the Bitcoin mainnet. 

 L2 staking protocol offers BTC staking solutions to other Layer 2s with its Mirrored Bitcoin (mBTC). 

 the centralized BTC staking that wBTC offers by decentralizing its overlapping multisig mechanism. 

 is a unique system of ordering satoshis, the smallest units of Bitcoin, allowing the creation of Bitcoin NFTs. Users can inscribe data, such as text or images, as a digital artifact onto an individual satoshi. This process creates Bitcoin-native digital artifacts (also known as Bitcoin NFTs) that can be stored, transferred and traded on the Bitcoin blockchain. 

 created by the same team that developed Ordinals, addresses the issue of congestion resulting from the inefficiency of the BRC-20 token standard within Ordinals using Bitcoin’s native UTXO transaction model.

All three of the solutions above aim to enhance the throughput of Bitcoin, while sidechains and rollups can help add smart contract ability to the Bitcoin ecosystem. As observed from the Ethereum Layer 2 evolution, rollups are a more advanced technology than sidechains, since we don’t see new projects using sidechain architecture. Essentially, sidechains are separate blockchains — and, technically speaking, all alternative Layer 1s can become sidechains as long as they enable the transfer of assets in and out of Bitcoin.

Nonetheless, a few innovative solutions for Bitcoin sidechains aim to address the inherent security risks facing the seemingly outdated Layer 2 solutions, including the merge mining concept from Rootstock. 

Frankly speaking, all risks and limitations facing Ethereum Layer 2s in their early stages of development will arise for Bitcoin Layer 2s.

Bitcoin Layer 2 Report: Bitcoin Layer 2s Set to Boom as Bitcoin Continues to Outperform

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