Bitcoin Layer 2 projects are emerging rapidly, with many projects claiming to be Bitcoin L2 but lacking substantial progress, leading to chaotic situations. In response, Bitcoin Magazine, a well-established Bitcoin information media, released an editorial policy on the 21st to clarify its stance on reporting L2 projects, as there are speculators attempting to use Bitcoin L2 development to promote their own cryptocurrencies.
Bitcoin Magazine outlined three major criteria that must be met in order for a project to be considered a Bitcoin L2 and included in their reporting:
1. Use Bitcoin as the native asset: L2 must be fundamentally designed to use Bitcoin as its primary token or accounting unit, and there must be a mechanism to pay transaction fees in Bitcoin for the L2 system. If there are tokens involved, they must be backed by Bitcoin.
2. Use Bitcoin as the settlement mechanism for executing transactions: L2 users should have control and be able to return assets to L1 through a mechanism, whether trusted or trustless.
3. Demonstrate reliance on Bitcoin functionality: If the Bitcoin network completely fails but the related system can still operate, it is not considered a Bitcoin L2.
In addition, Bitcoin Magazine pointed out that protocols built on top of Bitcoin are not considered L2, but there are still eligible protocols that can be reported, such as:
– Meta protocols: Systems like Counterparty (XCP) or Ordinals that exist and operate on Bitcoin L1 but are outside the scope of the Bitcoin protocol and do not have their own independent blockchain.
– Parasitic layers: These systems rely on Bitcoin to exist and cannot operate independently, but they do not meet the other criteria required for L2.
The editorial policy explicitly states that it does not apply to reporting requirements for stablecoins or tokens and only pertains to BitcoinMagazine.com and its print publications. It does not represent the execution policies of “The Bitcoin Conference,” over-the-counter trading service Rare BTC, or the asset management division UTXO Management of Bitcoin Magazine’s parent company BTC Inc.
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