L2 developers assert that Bitcoin’s widespread adoption demands DeFi and consumer applications

Bitcoin’s potential for mass adoption can only be realized if it embraces decentralized finance (DeFi), say developers of Bitcoin layer-2 networks. While Bitcoin is primarily known as a currency and digital gold, developers argue that there are numerous untapped use cases for the blockchain. The founder of Bitcoin Virtual Machine (BVM), known as “punk3700,” emphasizes the need to create a consumer layer on top of Bitcoin to unlock its full potential. This includes embracing DeFi applications, despite the potential risks they may bring. Similarly, Willem Schroé, the founder of Botanix Labs, believes that Bitcoin must connect to the broader financial system to fulfill its potential. Botanix Labs launched the Spiderchain, a proof-of-stake layer 2, to enable Bitcoin to interact with the Ethereum Virtual Machine (EVM). Another project, SatoshiVM, aims to create an EVM-compatible layer-2 solution for Bitcoin using zero-knowledge rollups. However, it has faced controversy surrounding its recent token launch. On the other hand, some projects, like BitVM, focus on scaling Bitcoin’s transaction speed rather than implementing smart contracts. Despite differing opinions, many developers agree that Bitcoin’s lack of a general-purpose programming language and virtual machines makes it logical to build on top of the network. The rise of non-payment applications, such as Bitcoin Ordinals, demonstrates the demand for more use cases on Bitcoin. Overall, developers are working towards making Bitcoin programmable, aligning with Satoshi Nakamoto’s original vision.