Understanding of BTC’s Second Layer Expansion BEVM

Comprehending BTC's Second Layer Expansion through BEVM

Source: Dowsay Blockchain

1. Bitcoin’s Second Layer Expansion – BEVM

This project is considered a “good” project that hits the sweet spot in terms of current standards:

– It expands the performance of Bitcoin

– It enables Bitcoin to support smart contracts and is fully compatible with the Ethereum Virtual Machine (EVM)

• There are new investment opportunities in the cryptocurrency market every year. Older generation investors, don’t keep suffering from PTSD.
• Worldcoin Foundation Unveils Wave0 Initiative to Support Innovators and Equitable Systems
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– It claims to achieve great decentralization

These three factors perfectly align with the current “trend” in the Bitcoin ecosystem, so it’s natural that many people would consider it a good project.

However, as I mentioned in a previous article, projects following this approach will inevitably run into the same problems Ethereum is facing.

To better explain the details, let’s first take a look at the issues Ethereum’s second layer expansion is currently facing.

In my previous articles, I mentioned that the biggest problem with Ethereum’s second layer expansion is that it hasn’t lived up to the industry’s expectations in terms of improving overall performance.

In a previous article discussing BNB’s second layer expansion, opBNB, I mentioned that according to Ethereum’s current design, it can only support around 2,000 transactions from second layer extension systems. This is the current performance limit of Ethereum. To further increase this limit, Ethereum would likely have to adopt the path of sharding. And since sharding involves modifying the consensus layer of Ethereum, it’s highly probable that this modification will eventually be implemented.

This technological development trend is inevitable unless there is a new disruptive technology that can surpass the performance improvements brought by sharding.

The development path of BEVM follows this same logic. If these Bitcoin extensions continue to develop along this path, their performance improvements will also reach a limit one day. To further increase this limit, Bitcoin would also have to adopt a similar sharding solution. And to implement sharding, it would inevitably involve modifying the consensus layer of Bitcoin, which is nearly impossible because it requires the consensus of Bitcoin’s core developers.

So while Ethereum can take this path, Bitcoin will face much greater difficulties.

But for now, these types of projects are undoubtedly loved by many investors because they are perceived as being “correct,” “natural,” and align well with the logical progression.

These shares above do not mean that this project is not good. Technically, it is a good project. However, in terms of its development path, it will inevitably hit a ceiling in the visible future. So, how big its potential is, is left for the readers to judge.

I am not involved in this project.

Recently, I have been observing many projects in the Bitcoin ecosystem. But as my observations have become more detailed, I have realized that many of these projects are likely to encounter the same problems that Ethereum projects are facing now, except these problems have not yet been realized.

2. What will happen if TreasureDAO builds its chain on COSMOS?

If TreasureDAO builds its chain on COSMOS, I will no longer be optimistic about this project in the long run.

This project’s success and current momentum are closely related to the Ethereum ecosystem. Once it separates from this ecosystem, there will be too much uncertainty in the future.

However, I may not immediately sell off my Magic tokens. Instead, I will hold onto them until the next bull market and sell them then. After selling, I likely won’t pay much attention to this project anymore.

In addition, there are now more and more gaming projects emerging in the Ethereum ecosystem that are gaining momentum. I believe competition in this space within the Ethereum ecosystem will become intense in the future, with many great projects emerging.

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