Bitcoin’s Utility Era: Unlocking RWA and DeFi with Layer 2 Innovation
PALO ALTO, CA, United States, 15th Mar 2025, – Ethereum showed the world that blockchains could do more than just settle transactions and lock in value; they could become platforms for a vast array of services, from decentralized finance (DeFi) applications and sophisticated liquidity pools to non-fungible tokens (NFTs) and entire digital economies.
At the heart of these innovations is the idea of Layer 1 and Layer 2 solutions. Layer 1 refers to the base blockchain itself-like Bitcoin or Ethereum-where transactions are recorded and secured by the network’s consensus mechanism. Layer 2, on the other hand, consists of additional protocols built on top of Layer 1 to improve scalability, reduce fees, and add advanced functionality without overloading the base layer. Ethereum, with its Layer...