What is BSquared Network (B2)?

By CMC AI
14 November 2025 01:24AM (UTC+0)

TLDR

BSquared Network (B2) is a Bitcoin Layer-2 solution combining AI-driven governance with scalable infrastructure to unlock Bitcoin’s utility in DeFi and intelligent agent economies.

  1. Bitcoin-Centric Infrastructure – Enhances Bitcoin’s programmability via an EVM-compatible rollup and AI-optimized data layer.

  2. AI Integration – Enables AI agents to interact, transact, and govern using verifiable on-chain signals.

  3. Economic Flywheel – Bridges Bitcoin mining, DeFi yield strategies, and AI-driven liquidity into a closed-loop system.

Deep Dive

1. Purpose & Value Proposition

BSquared aims to transform Bitcoin from a passive store of value into an active economic layer for decentralized finance (DeFi) and AI agents. By addressing Bitcoin’s scalability and programmability gaps, it allows users to deploy BTC in yield strategies, miners to earn beyond block rewards, and AI agents to transact autonomously (B² Hub). The network’s U2 stablecoin (pegged to USD and backed by BTC) further supports high-frequency AI payments.

2. Technology & Architecture

  • B² Rollup: An EVM-compatible execution layer secured by Bitcoin via zero-knowledge proofs (ZKPs) and Taproot, enabling smart contracts and cross-chain DeFi.
  • B² Hub: Acts as a “Layer 1.5” using Proof of Signal (PoSg), where AI agents stake tokens to validate tasks and propose governance changes, anchored to Bitcoin for finality.
  • Mining²: Integrates Bitcoin’s hashrate with DeFi tools, letting miners auto-compound yields from staking derivatives or liquidity pools (BSquaredNetwork).

3. Key Differentiators

  • Bitcoin Security: All transactions and AI signals are ultimately settled on Bitcoin, leveraging its immutability.
  • AI Signal Protocol: Standardizes how AI agents communicate intent and payments on-chain, creating a native economy for machine-to-machine transactions.
  • Modular Design: Supports application-specific sharding, allowing developers to build AI or DeFi dApps without compromising Bitcoin’s base layer.

Conclusion

BSquared reimagines Bitcoin as a foundational layer for programmable value, bridging decentralized finance and autonomous AI economies. By anchoring innovation to Bitcoin’s security, it offers a unique path to scalability without sacrificing decentralization. Could Bitcoin’s role as a settlement layer for AI economies redefine its long-term value proposition?

CMC AI can make mistakes. Not financial advice.