What is BSquared Network (B2)?

By CMC AI
20 February 2026 02:37AM (UTC+0)
TLDR

BSquared Network (B2) is a modular blockchain infrastructure project designed to scale Bitcoin's utility by making it programmable for decentralized finance (DeFi) and artificial intelligence (AI) applications.

  1. Bitcoin Scaling Solution – It functions as an EVM-compatible Bitcoin Layer 2, enabling fast, low-cost transactions and smart contracts while leveraging Bitcoin's security.

  2. Modular Technology Stack – Its architecture includes a zk-rollup for execution, a data availability hub anchored to Bitcoin, and a integrated mining pool for yield.

  3. AI & Bitcoin Economic Flywheel – The project is evolving into a Bitcoin-based AI payment infrastructure, creating a closed-loop economy where BTC can be earned, spent, and used by AI agents.

Deep Dive

1. Purpose & Value Proposition

BSquared Network addresses Bitcoin's core limitations of scalability and programmability. Bitcoin is highly secure but slow and costly for transactions, with limited native smart contract functionality. B2 solves this by building a high-performance Layer 2 on top of Bitcoin. This allows developers to create decentralized applications (DApps) using the familiar Ethereum Virtual Machine (EVM) standard, bringing DeFi, yield strategies, and complex logic to the Bitcoin ecosystem (B² Network).

2. Technology & Architecture

The network employs a modular design with three key components. The B² Rollup is a zero-knowledge (zk) rollup that processes transactions off-chain for speed, then submits cryptographic proofs to Bitcoin for finality. The B² Hub acts as a data availability layer, securely anchoring transaction data to the Bitcoin blockchain. MiningSquared integrates a Bitcoin mining pool with DeFi, allowing miners to automatically compound earnings into yield-generating strategies (BYDFi).

3. Key Differentiators: AI and Bitcoin Economics

B2 differentiates itself by pivoting toward AI infrastructure. Its AI Signal Protocol enables AI agents to communicate via verifiable on-chain signals, turning tasks and intent into economic primitives. The project also launched U2, a BTC-backed stablecoin, to facilitate high-frequency AI-to-AI payments. This creates a "Mine → Mint → Move → Multiply" economic flywheel, aiming to establish Bitcoin as the settlement layer for the machine economy (B² Network).

Conclusion

BSquared Network is fundamentally a bridge transforming Bitcoin from a static store of value into a dynamic, programmable base layer for next-generation DeFi and AI economies. How effectively will its AI Signal Protocol drive real-world adoption among decentralized AI agents?

CMC AI can make mistakes. Not financial advice.