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Conflux Network Introduces EVM-Compatible Bitcoin Layer 2 Solution

Conflux Network's new Layer 2 solution aims to enhance DeFi participation and transaction efficiency on the Bitcoin blockchain.
Published on 2024-01-19

Conflux Network's New EVM-Compatible Solution

Conflux Network is set to revolutionize decentralized finance (DeFi) with its announcement of an EVM-compatible Bitcoin Layer 2 solution. This innovative platform is designed to increase DeFi participation and improve transaction efficiency. The testnet is anticipated to launch in March, with the mainnet following in May.

Enhancing Bitcoin's Utility

The Layer 2 solution will utilize Bitcoin (BTC) for transaction fees and support both BRC-20 tokens and Bitcoin inscriptions. This approach aims to broaden the Bitcoin blockchain's utility, making it more versatile for various applications. Following this development, Conflux Network's native token, CFX, saw an 8% increase in value.

Improving Transactions and Security

Operating on a secondary layer, the platform is designed to boost transaction throughput and decrease costs while retaining the Bitcoin blockchain's robust security features. It will use a Proof of Stake (PoS) consensus protocol to enhance interoperability among different blockchain systems.

Addressing Scalability Challenges

Conflux Network's initiative reflects a broader trend in the blockchain ecosystem to improve scalability and user experience. Traditionally, Bitcoin has faced scalability challenges due to its Proof of Work (PoW) consensus mechanism, but this new Layer 2 solution aims to address these issues effectively.

This strategic move by Conflux Network highlights the ongoing efforts to enhance blockchain technology, particularly for Bitcoin, by leveraging innovative solutions to overcome existing limitations.

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