The king cryptocurrency is widely accepted as a store of value on a global scale, but there is potential for more. Although SEC lawyers have made absurd comments that Bitcoin is not a security because it does not have its own ecosystem, we will see this change. A new BTC-backed network is coming.
Why is CFX Rising?
EVM-compatible Bitcoin Layer 2 solution announced by Conflux has also led to a rapid increase in its own token price. This Layer 2 solution will use BTC for transaction fees. It will allow the bridging of various asset types from Bitcoin and enable the transfer of assets to Bitcoin. Many initiatives are working on a Layer 2 that uses Bitcoin as the main network, and there are successful examples like STX.
We may witness that these Layer 2 solutions, which will maximize security for third-party smart contracts (security brought by BTC miners), are also extensively used in the RWA field. After all, BTC has already officially become recognized as an asset class by the US.
The PoS consensus protocol aims to further increase reliability by staking BTC. The testnet is expected to be launched within the next two months. The mainnet launch is expected to take place in May 2024. EVM compatibility is a very important detail and will easily allow protocols that work with the Ethereum Virtual Machine to be transferred here.
