What is Bitlayer (BTR)?

Deep Dive

1. Purpose & Value Proposition

Bitlayer solves Bitcoin’s programmability limitations by enabling decentralized applications (dApps), DeFi, and cross-chain interoperability. Its BitVM Bridge converts BTC into YBTC—a 1:1 Bitcoin-pegged asset—allowing BTC holders to earn yield, lend, or provide liquidity while maintaining Bitcoin’s security. This unlocks $1.4T+ in dormant Bitcoin liquidity for DeFi, transforming BTC from passive asset to productive capital.

2. Technology & Architecture

Built on BitVM, Bitlayer executes complex computations off-chain and verifies them on Bitcoin via fraud proofs. Its optimistic rollup architecture processes transactions faster and cheaper than Bitcoin L1 while retaining Bitcoin-equivalent security. The trust-minimized bridge requires just one honest participant to prevent fraud, eliminating centralized custodians. Partnerships with Antpool, F2Pool, and SpiderPool (36%+ Bitcoin hashrate) ensure non-standard transactions critical to BitVM’s challenge-response mechanism are processed securely.

3. Tokenomics & Governance

BTR’s 1B total supply fuels:
- Governance: Holders vote on protocol upgrades and fee structures.
- Staking/Node Security: Stakers delegate to nodes for network integrity.
- Fee Switch: A portion of transaction fees rewards stakers or funds buybacks.
Initial circulating supply is 261.6M BTR (26.16%), with vesting schedules for investors (30-month lockup) and team (72-month lockup) ensuring long-term alignment.

Conclusion

Bitlayer merges Bitcoin’s battle-tested security with Ethereum-like programmability through BitVM, positioning BTR as the governance and utility token for Bitcoin’s DeFi evolution. How might YBTC’s integration with chains like Sui and Arbitrum redefine Bitcoin’s role in multi-chain ecosystems?