1/20 Just saw this comment and it hit me - I've been so deep in Bitcoin L2 tech that I forgot most people aren't familiar with the whole ecosystem. @ArchNtwrk is doing something interesting, but it's just one piece of a growing Bitcoin L2 landscape that many haven't explored yet https://t.co/mTeJiWsdfP

2/20 Time for a thread on Bitcoin L2 approaches since a lot of you might find this interesting...

3/20 Bitcoin L2s all try to make Bitcoin more useful without messing with Bitcoin’s core rules. But they take really different technical paths to get there.
Let's break them down:

4/20 Zero-knowledge magic (@citrea_xyz, @build_on_bob) These projects use zero-knowledge proofs to prove transactions happened without revealing details. Bitcoin doesn't verify each tx - it checks a single proof that confirms everything is legit

6/20  ZK rollups vs. general zero-knowledge tech
ZK rollups take this a step further - they bundle a ton of transactions into one proof, making everything cheaper and faster. But zero-knowledge isn’t just about rollups. It’s also used for privacy, security, and even new smart contract logic on Bitcoin

7/20 Simpler to deploy than ZK rollups, but they rely on time delays before transactions are final. Like a bank deposit that shows up instantly but takes days to fully clear

8/20 Bitcoin staking (@babylonlabs_io, @nubit_org)
These let you use your Bitcoin to secure PoS networks, acting as economic security without wrapping or moving it. Your BTC stays on Bitcoin but is referenced by another chain. It's like using your Bitcoin's cryptographic proof of ownership to validate actions elsewhere, without the coins ever leaving your wallet.

9/20 Bitcoin finality (@BotanixLabs)
Some projects use Bitcoin as a final settlement layer for their own chains. They periodically anchor their state to Bitcoin, making history harder to rewrite

10/20 Bridges (@beyond__tech, @BitAgere, @SolvProtocol)
The oldest approach – move Bitcoin to chains with more features. Wrap your BTC into a token that can be used elsewhere

11/20 The challenge is trust – who holds your actual BTC while you use the wrapped version? Most solutions use groups of validators, multi-party computation (MPC), or cryptographic proofs to manage BTC transfers.

12/20 EVM compatibility (@Stacks, @BitAgere, @citrea_xyz, @avalonfinance_, @build_on_bob)
Instead of modifying Bitcoin, some L2s add Ethereum’s smart contract environment to make Bitcoin work with existing Ethereum tooling.

13/20 Stacks takes a different approach – it doesn't use EVM but instead introduces Clarity, a smart contract language designed for Bitcoin’s security model. It also secures itself with Proof-of-Transfer (PoX), linking to Bitcoin’s finality.
Sounds simple, but integrating smart contracts with Bitcoin is tricky no matter the method.

14/20 MoveVM (@RoochNetwork)
Instead of EVM, some projects are using Move, a programming language designed for asset security. It handles coins more directly than Ethereum’s contract-based approach, which some argue makes it a better fit for Bitcoin’s model

15/20 BitVM (@nubit_org, @ArchNtwrk)
One of the most experimental approaches. BitVM extends Bitcoin’s scripting capabilities to verify complex computations off-chain, then settle them on Bitcoin

16/20 BitVM essentially creates a verification layer for complex operations using only Bitcoin's basic scripting capabilities. It's like building advanced logic circuits using only simple switches - ingenious but with inherent limitations on throughput and complexity.

17/20 Modular systems (@Pell_Network)
Instead of doing everything on one chain, modular blockchains split functions into specialized layers – execution, data storage, finality, etc.
Think of it like how a computer has separate components for processing, memory, and storage instead of doing everything in one place

18/20 All these approaches face similar challenges: Bitcoin’s base layer is limited in space, security is hard to maintain across systems, and scaling without centralization is still unsolved

19/20 *Note: This is a simplified overview - many projects combine multiple approaches or take unique paths. For more technical details, check out our deeper analysis: https://t.co/dB6jFgH2um
*Note 2: I've only mentioned some of the BTC L2 projects. To explore the full ecosystem, check out our dashboard: https://t.co/IPN1VM43vo

20/20 Which one actually makes the most sense? What am I missing here?

5/20 The math behind this is powerful (@nubit_org, @MerlinLayer2) - like proving you know a password without showing any characters, or proving you have enough money without revealing your balance. That's zero-knowledge tech