Layer 2 Labs, a Web3 company focused on the development of Bitcoin, has raised $3 million to introduce drivechains into the Bitcoin blockchain. Layer 2 Labs is a company led by Paul Sztorc, the author of two Bitcoin Improvement Proposals (BIP) 300 and 301; CryptAxe, Bitcoin Core contributor, and Austin Alexander, Lead Account Manager at Kraken, to bring privacy, scalability and UX solutions to Bitcoin.
Details of the proposals reveal the specifications and technicalities related to Drivechains and how they function. Layer 2 Labs stands to make these proposals come true.
Drivechains are systems through which Bitcoin side-chains can be created. Side-chains on the other hand, are blockchains created to work side by side with Bitcoin, where BTC can flow between the Bitcoin blockchain and a sidechain.
Since BTC does not leave the Bitcoin network, sidechains achieve this result by locking up BTC in the Bitcoin chain while representing the locked assets on a sidechain at a 1:1 peg. The funds raised by angel investors will be used to make Bitcoin more useful.
Make Bitcoin the global liney standard
The co-founder of Layer 2 Labs, who’s also a researcher working on drivechains since 2015, said that the three goals the company is focused on are to develop drivechains, improve user experience on Bitcoin, and work on challenging tasks like bringing back Namecoin.
Further explanation by the bitcoiner shows that Layer 2 Labs, amongst the six sidechain-designs it has been developing, 2 are replicas of Ethereum and zCash to be deployed on Bitcoin only. “These allow for immediate global scale, impenetrable easy-to-use privacy, and complete freedom (for users and developers),” he added.
Sztorc also noted that the company wants to see more users easily run Bitcoin nodes, hold keys, and changing the UX of Bitcoin while creating additional educational materials for Bitcoin will make it possible.
Working on Namecoin and prediction markets could “revolutionize media and telecommunications, just as Bitcoin will revolutionize Banking,” he said.
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