jakiro
Author: Daoshuo Blockchain
At the end of these days, many readers have left messages mentioning Bitcoin’s second-tier network Merlin and its continued growth in staking.
The second-layer Bitcoin network where Merlin is located is already a very clear track in the current and subsequent bull markets, and this track is likely to explode on a large scale in this wave and even the following market.
So I have always been paying more attention to the development of this track and related projects.
Bitcoin’s second layer network has not been available in the past two years.As early as 2017 and 2018, there were projects related to Bitcoin Layer 2 networks.
But in that era, except for Bitcoin, there were basically no other liquid assets on the Bitcoin network, so the second-layer Bitcoin network that appeared at that time was “born at the wrong time”, and it has not been very developed over the years.The improvement.
After the emergence of the inscription ecosystem, a large number of assets with high market value and good liquidity appeared on Bitcoin.However, due to technical limitations, it will be quite difficult to establish related application services and call these assets on the Bitcoin main network, which provides an excellent time for the development of the Bitcoin Layer 2 network.
In addition, the development of Ethereum’s second-layer network in recent years has given relatively mature technical routes. Not only will these technical routes be suitable for Bitcoin in the end, but it at least provides a very reference for reference.This provides a good technical reserve for the development of Bitcoin’s second-layer network.
Driven by these conditions, Bitcoin’s second-layer network has shown an explosion in the past two years, especially at the end of last year and the beginning of this year.
It is worth noting that the emerging projects in this round of explosion are far stronger than old projects (such as Rootstock and Stacks) in terms of experience and market response.
If we measure it with the current more general standard TVL, the most valuable Bitcoin second-layer network is undoubtedly Merlin.
According to the latest data from geniidata.com (https://geniidata.com/ordinals/index/merlin?ref=H2534F), Merlin’s TVL has exceeded $3 billion.This value has exceeded Solana.
My feelings about the Merlin project are a bit complicated:
On the one hand, this project used email registration in the previous operation to make me a little disgusted; but on the other hand, the measures taken by the project party in terms of pledge are quite tolerant, not only covering all kinds of popular assets in the Bitcoin ecosystem, but alsoTentacles extend to the Ethereum ecosystem, allowing ETHS holders to pledge them.
Because of such measures, its TVL has shown explosive growth and its popularity has also increased rapidly.
But from a technical perspective alone, I think Merlin has not made much innovation. They are all relatively old-fashioned methods: use a multi-signment wallet to lock assets on the main network and issue anchor assets on the side chain.
These are compromises that were mature a few years ago.
In fact, most of the Bitcoin Layer 2 networks currently do not have technical innovations. It is difficult for these projects to obtain the guarantee of the Bitcoin main network in terms of security, which is quite different from the Ethereum Layer 2 network.The gap.Even if some projects can obtain the security of the Bitcoin main network to a considerable extent, there are considerable flaws in applying somatosensory.
So I still have no way to judge what the final direction of Bitcoin’s second-layer network will be.But in the short and medium term, especially in the next bull market, I believe this track can still attract considerable popularity and capital.
Merlin’s outstanding achievements in pledging assets have the most direct impact:
First, it directly benefits the project itself; second, it directly drives the price of related pledged assets.
I believe that this impact will accelerate its fermentation in the future, especially in terms of raising the price of pledged assets.
With Merlin as a role model, more projects for the second-layer Bitcoin network will emerge next.These projects will surely introduce more intense and larger incentives to attract users to mortgage value assets in the Bitcoin ecosystem into the projects.This will further boost the price of these assets.
Look at the development of the second layer of Ethereum network next door: In my opinion, it is already a track close to the blue ocean, and there are still a large number of venture capital and funds flowing to new projects, and these new projects are constantly strengthened.Airdrops are expected to compete for users and TVL.
In contrast, Bitcoin’s second-layer network, this track is obviously still in the horse racing stage, and it will definitely be very lively next.
For investors, I have two suggestions:
First, when mortgageing assets, you should be more cautious, and do not mortgage them in full, and leave some bottom.
The second is to hold the valuable assets in your hand tightly and don’t sell them easily for temporary price increases.I believe that taking them into a bull market will bring more amazing returns.
