Merlin Chain Founder Believes Bitcoin Requires Layer-2 Networks More Than Ethereum
2 min read
Merlin Chain Founder Believes Bitcoin Requires Layer-2 Networks More Than Ethereum
Bitcoin decentralized finance, also known as BTCFi, has gained popularity with the introduction of Ordinals and BRC-20 tokens. Jeff, the founder of Merlin Chain, a Bitcoin layer-2 network, discusses how the BTCFi movement is transitioning from BRC-20 to BRC-420 in episode 47 of ‘s podcast. He highlights the challenges faced by layer-2 networks and Bitcoin and explains why the growth of utility on the network is beneficial for the entire ecosystem.
Jeff differentiates between BRC-20 and BRC-420, stating that BRC-20 allows developers to create and mint tokens, while BRC-420 focuses on modularized data and tokenized modules. He provides an example of how BRC-420 can be used by an artist to distribute an album on the blockchain. With BRC-420, the artist can separately inscribe each song and later combine them into one album. This album can then be tokenized into shares, enabling fans to purchase it on-chain.
The importance of layer-2 networks is greater for Bitcoin compared to Ethereum. Jeff explains that layer-2 networks offer use cases that cannot be built on layer-1 for Bitcoin, whereas Ethereum can host most of its innovations on layer-2 networks. He emphasizes the necessity of a layer 2 for deploying smart contracts on the Bitcoin network, which is not the case with Ethereum.
Jeff also highlights a key issue with Bitcoin layer-2 platforms. He states that these platforms are not addressing the specific needs of the Bitcoin community that already interacts with Ordinals and other innovations on the network. Instead, they merely replicate concepts from Ethereum layer-2s, making it challenging to excite the Bitcoin community.
The podcast episode is available on Spotify, Apple Podcasts, or TuneIn. offers a range of other shows that can be explored as well.
Bitcoin decentralized finance, or BTCFi, is just a hype. It’s not sustainable.
Layer-2 networks for Bitcoin are simply a desperate attempt to catch up with Ethereum. It won’t work.
I’ve never heard of Merlin Chain or Jeff, and after reading this article, I don’t care to know more either. 😒
I’m not wasting my time listening to this podcast episode. It’s probably just a bunch of buzzwords and empty promises.
Replicating concepts from Ethereum layer-2s for Bitcoin is just lazy. Can’t they come up with something original? 😡
Layer-2 networks are crucial for Bitcoin’s growth, and it’s fascinating to learn that they offer unique use cases that aren’t possible on layer-1. Ethereum may have its innovations on layer-2, but Bitcoin needs its own layer 2 for smart contracts. This is game-changing! 🌐⛓️
I can’t wait to listen to this podcast episode on Spotify! The description alone has gotten me so curious and eager to learn more about BTCFi and the challenges faced by layer-2 networks. Exciting times ahead!