SHANGHAI - Conflux Network has announced its plans to introduce an EVM-compatible Bitcoin Layer 2 solution, aiming to boost decentralized finance (DeFi) participation and enhance transaction efficiency. The Layer 2 platform is scheduled to roll out its testnet by March and expects the mainnet to be live in May.
The upcoming solution is set to use BTC for transaction fees and will support both BRC-20 tokens and Bitcoin inscriptions, expanding the utility of the Bitcoin blockchain. Following the announcement on Thursday, the native token of Conflux Network, CFX, experienced an 8% surge in price, reaching $0.2203.
Designed to operate on a secondary layer, the platform is intended to improve transaction throughput and reduce costs, while maintaining the robust security features of the Bitcoin blockchain. The Layer 2 solution will function within a Proof of Stake (PoS) consensus protocol, which is expected to foster greater interoperability across different blockchain systems.
The initiative by Conflux Network is part of a growing trend to enhance scalability and user experience in the blockchain ecosystem, particularly for Bitcoin, which has traditionally faced challenges in these areas due to its Proof of Work (PoW) consensus mechanism.
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