Bitcoin L2s on the Verge of Explosion: Runes Cause Network Congestion
2 min read
Bitcoin L2s on the Verge of Explosion: Runes Cause Network Congestion
The rise in popularity of Runes, a new Bitcoin token standard, has highlighted the urgent need for layer-2 (L2) solutions for Bitcoin. Runes allow users to create fungible tokens on the Bitcoin blockchain and were created by the creator of Ordinals, which enabled Bitcoin nonfungible tokens. The increased activity of Runes has led to high Bitcoin transaction fees and network congestion. Research from Spartan Group shows that the introduction of Ordinals resulted in a significant increase in Bitcoin fees. This has created a demand for L2 scaling solutions for Bitcoin.
According to Rena Shah, vice president of products and operations at Trust Machines, the high transaction fees and network congestion are indicators that Bitcoin builders need to focus on L2 scaling. Shah predicts a “Bitcoin L2 summer” with an influx of scaling solutions similar to what happened when Ethereum transaction fees became unmanageable and L2 solutions were quickly embraced.
Daniel Fogg, CEO of Rootstock Labs, believes that while Bitcoin can handle the increased activity from Runes, the high fees present an opportunity for L2 solutions to scale the network and add more functionality. He emphasizes the need for Turing-complete smart contracts and developer tools to build a new economy on Bitcoin.
Several Bitcoin L2 solutions are currently in development. Rootstock is one such solution that combines the security of Bitcoin with the programmability of Ethereum. It allows developers to port Ethereum contracts on top of Bitcoin. The Stacks network, which uses a proof-of-transfer consensus mechanism parallel to Bitcoin’s proof-of-work, will also receive a major upgrade to become a usable Bitcoin L2.
Alexei Zamyatin, co-founder of Build on Bitcoin (BOB), estimates that at least 40 Bitcoin L2s have recently been announced. BOB, a hybrid L2 solution, will launch its mainnet soon, combining Bitcoin features with Ethereum’s innovation capabilities.
Bitcoin L2 solutions can expand the functionality of Runes and make them more composable with other Bitcoin data. This can be achieved with smart contracts and other incentive mechanisms to extend use cases. Coinweb Labs is about to activate its L2 computation layer on top of Bitcoin, allowing users to run smart contracts on Bitcoin using their existing Bitcoin wallets.
Other Bitcoin L2 solutions aim to create stronger bridges to Bitcoin, such as BitVM, which enables Turing-complete Bitcoin contracts without altering Bitcoin’s consensus rules. It is important to note that many Bitcoin L2 solutions currently in development may be driven by hype rather than functional dependence on Bitcoin.
I don’t understand why they didn’t foresee these scalability issues before introducing Runes. It’s causing so much inconvenience.
The introduction of Ordinals already resulted in increased fees, and now Runes is making it even worse? This is getting out of hand. 😤
I’m thrilled to witness the growth and development of Bitcoin’s L2 ecosystem. 🌱 Exciting times ahead for the world of cryptocurrency! 🌟💰
This rise in popularity of Runes has been nothing but a headache for Bitcoin users. The high transaction fees and network congestion are incredibly frustrating!
I just want a seamless Bitcoin experience without all these additional layers and fees. Is that too much to ask for? 😔💔
So now we have to wait for a “Bitcoin L2 summer” to fix these issues? Can’t they come up with a solution sooner? 😩⏳
The idea of running smart contracts on Bitcoin seamlessly using existing wallets is mind-blowing! Coinweb Labs’ L2 computation layer is going to be a game-changer.
It’s disappointing to see that Bitcoin, supposedly the most innovative cryptocurrency, is struggling with basic scalability. Other coins seem to handle it better. 🤔💔
Build on Bitcoin (BOB) sounds really promising! A hybrid L2 solution with Bitcoin’s features and Ethereum’s innovation capabilities is a win-win.
The high fees are just a golden opportunity for developers to profit off of our frustration. They should be focused on fixing the problem, not taking advantage of it. 😒💸
Rootstock Labs seems like a promising L2 solution. 👏 Combining the security of Bitcoin with Ethereum’s programmability is a game-changer. 🙌
Why can’t they figure out a solution to these high fees and congestion issues? It’s making Bitcoin almost unusable. 😡🤬
I thought Bitcoin was supposed to be the future of currency, but with all these L2 solutions causing problems, I’m starting to lose faith.
Wow, 40 Bitcoin L2s recently announced? It feels like everyone is just jumping on the bandwagon without proper consideration for the impact on Bitcoin. 😒🎢
Great, more L2s on the way! Just what we need, more complexity and confusion in the Bitcoin ecosystem.
BitVM’s concept of enabling Turing-complete Bitcoin contracts is fascinating! It could revolutionize the way we utilize Bitcoin’s consensus rules.