With the popularity of Bitcoin, the Bitcoin Layer2 project Bitfinity, closely related to EVM technology, has attracted attention again, with a current valuation of $130 million.
(Foreword:
What is Bitcoin Layer2? How is it different from sidechains? Analyzing technical difficulties and future potential.)
(Background:
Inventory of Bitcoin Layer2 ecosystem: Stacks, Lightning Network, and other important projects.)
Table of Contents:
Ethereum-compatible Blockchain
Other Features of Bitfinity
Token Economy of Bitfinity
Recently, the Bitcoin Layer2 project Bitfinity announced that it has raised a total of $7 million in funding, with investors including Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures. This funding was divided into two parts, including a seed round financing of approximately $1 million in 2021, and a growth round financing completed in June last year. Both rounds of financing were token financing, bringing Bitfinity’s valuation to $130 million.
Currently, Bitfinity is in the testnet stage and plans to launch its mainnet later this month or in early February.
According to Max Chamberlin, co-founder of Bitfinity, the announcement of the financing is intended to generate excitement and attention before the official launch of the network. As an emerging Bitcoin Layer 2 solution, Bitfinity’s development is closely related to EVM technology.
Bitfinity Network EVM is built on the Internet Computer (IC), which is compatible with Ethereum blockchain and uses the Solidity language. Thanks to IC’s unique architecture and Chain Key technology, Bitfinity Network EVM is more efficient than the traditional implementation of EVM on other blockchains, with storage capacity and processing speed on par with traditional web services, without the need to pay any gas fees.
By being EVM-compatible, Bitfinity allows developers familiar with the Ethereum programming environment to build decentralized applications (dApps) that can interact with Bitcoin, unlocking a large number of new applications and use cases for Bitcoin.
With Bitfinity, developers can deploy Bitcoin, Ordinals, and BRC-20 smart contracts written in Solidity. This will promote the practicality of Bitcoin, especially in the DeFi field, which has long been dominated by Ethereum.
The architecture of Bitfinity Network EVM consists of four key components:
– EVM API container: The container, similar to smart contract containers on IC, serves as the entry point of the system, receiving requests from Ethereum clients and IC agents. Once these requests are received, they are batch processed into a pending transaction pool.
– EVM execution container: After the EVM API processes the incoming requests into a pending transaction pool, the EVM execution container handles these transactions, updates the global EVM state, and updates the Blockchain container accordingly.
– Blockchain canisters: These contain the structure of Ethereum chain blocks, stored in IC’s stable storage containers. Currently, each container has a capacity limit of 48GB, but the project plans to increase storage to 1TB, allowing InfinitySwap to store all its data on-chain in one container.
– Signature Verifier canisters: These canisters are used to verify the signatures for verifying Ethereum transactions, which is a computationally expensive task. They are executed in a dedicated container pool to avoid excessive computation in the EVM API container.
By optimizing transaction throughput through signature verification and batch processing, Bitfinity Network EVM executes faster than the Ethereum mainnet EVM. These optimizations come with a high cost due to encryption and IO operations. Bitfinity Network EVM operates entirely on-chain, with code and data executed in WebAssembly.
WebAssembly is a single-threaded execution environment, and its parallel computation is achieved through a multi-canister architecture, which is why Bitfinity Network EVM can execute quickly.
In addition, Bitfinity Network EVM has undergone extensive testing, with a high coverage rate of core modules. The Retest integration testing suite is used to ensure the correctness of the JSON RPC interface and EVM execution. Bitfinity Network EVM utilizes existing Ethereum libraries such as REVM, Retest, canister-sdk, and IC’s stable storage to make full use of existing Ethereum libraries.
Bitfinity Network EVM also plans to integrate the Ethereum network and other EVM-compatible chains by running lightweight clients on IC, which will require changes to the network protocol to interface with all nodes on other chains and synchronize the entire blockchain. It supports connecting ICRC-1 tokens and ERC777/ERC20 tokens, as well as using Bitcoin as an ICRC-1 token.
Regarding tokens, BITFINITY is the official project governance token approved by Bitfinity DAO and is the native token of Bitfinity EVM. The total supply is 1 billion, and it is an ERC-20 token. The allocation is as follows:
– Community Treasury: 20%
– Governance DAO: 35%
– Long-term incentives: 16%
– Seed round: 5%
– Growth round: 8%
– Growth and liquidity program: 16%
– Grants: 3%
– Growth and partnership: 3%
– Locked liquidity: 10%
As for the question of whether there will be an airdrop, the official has not released any specific plans yet, but it is possible to airdrop to test users after the mainnet is officially launched. Interested readers can continue to follow for updates.
Further reading:
The Impossible Triangle of Bitcoin Layer2: Overcoming Challenges
Related Reports
Waterdrip Capital Report: The Past, Present, and Future of Bitcoin Layer2
Bitcoin Layer2 Ecosystem: Which Rollups Scaling Solution Has the Most Potential?
From BTC Lightning Network to Layer2: Who is Behind the Scenes of the Bitcoin Ecosystem?