Layer 2 Labs Launches Drivechains to Revolutionize Bitcoin Adoption

• Layer 2 Labs is launching with the goal of scaling and building out drivechains for the Bitcoin Network, raising $3 million in funding.
• Drivechains enable BTC to “flow” between the two networks in a two-way peg.
• The goal of drivechains is to move away from the federated model in favor of something it deems more decentralized – Bitcoin’s own miners.

Layer 2 Labs, a newly-founded company, has announced the launch of their product, with the goal of scaling and building out drivechains for the Bitcoin Network. The launch was made possible through a seed round of funding, raising $3 million.

Drivechains are a specific way through which to create Bitcoin sidechains. Sidechains are parallel blockchains to Bitcoin that enable BTC to “flow” between the two networks in a two-way peg. Since bitcoin can’t actually leave the Bitcoin network, sidechains accomplish this task by locking up BTC on the Bitcoin blockchain and representing them in different ways in the sidechain. The goal is that the representation of BTC in the sidechain maintains a 1:1 peg to the actual BTC locked on the Bitcoin network.

Layer 2 Labs co-founder and CEO Paul Sztorc believes that drivechains have the potential to revolutionize the way Bitcoin is used, by enabling greater scalability, extensibility, privacy, and flexibility on the network. Sztorc’s goal is to “make everyone in the world a Bitcoin user”, while Layer 2 Labs believes that drivechains have the potential to “kill altcoins, increase Bitcoin adoption, and provide the catalyst for hyperbitcoinization”.

The drivechain model is a move away from the federated model in favor of something it deems more decentralized – Bitcoin’s own miners. Blockstream’s model leverages a federation to handle the on-chain lock-up and withdrawals, as well as sidechain block creations. In contrast, the drivechain model seeks to have miners play a larger role in the process, by allowing them to vote on which transactions are valid and which are not. This is expected to result in a more secure and reliable system, as miners are incentivized to ensure the validity of any transactions they are voting on.

As the drivechain model continues to develop, Layer 2 Labs anticipates that it will help drive increased adoption of Bitcoin, as well as providing a more secure and reliable system for users. The company is hopeful that their product will help revolutionize the way that Bitcoin is used, providing users with greater scalability, extensibility, privacy, and flexibility.