Addressing Bitcoin’s Scalability with a New Layer

Bitcoin Hyper is a project designed to address the scalability challenges of the Bitcoin network, specifically its transaction speed and costs. By operating as a Layer 2 solution, it aims to enable faster and more affordable transactions, potentially expanding Bitcoin’s utility for payments, decentralized applications (DApps), and other complex operations.

How Bitcoin Hyper Works

The system’s architecture is built around a four-stage process that facilitates movement between Bitcoin’s main network (Layer 1) and the Bitcoin Hyper network (Layer 2). It leverages the Solana Virtual Machine (SVM) for high throughput and uses zero-knowledge (ZK) proofs to maintain security.

The Transaction Process

To begin, a user deposits BTC into a specific Bitcoin address overseen by the Bitcoin Hyper Canonical Bridge. A smart contract, known as the Bitcoin Relay Program, then verifies the transaction on the Bitcoin blockchain. Once confirmed, an equivalent amount of BTC is minted on the Layer 2 network in a trustless process.

On this second layer, users can transact with near-instant finality. The network is designed to support complex Decentralized Finance (DeFi) operations, including staking and decentralized exchanges, taking advantage of the SVM’s capacity for high-speed processing.

For settlement and security, Bitcoin Hyper batches and compresses its Layer 2 transactions. It uses ZK proofs to validate these batches before periodically committing the updated state back to Bitcoin’s Layer 1. This method ensures that the Layer 2 network remains synchronized and secured by the underlying Bitcoin blockchain.

When a user wishes to withdraw funds, they initiate a request on the Layer 2 network. The system verifies the request against the Layer 2 state and generates a proof for the bridge. After validation, the corresponding amount of BTC is released back to the user’s Layer 1 Bitcoin address.

Project Token Economics

According to the project’s documentation, the native token, $HYPER, has an allocation plan for its supply. Twenty-five percent of the tokens are designated for a treasury to fund business development and community initiatives. An additional 20% is allocated for marketing efforts. During its initial presale phase, the token was priced at $0.013255.

A new project called Bitcoin Hyper has emerged with the goal of operating as a Layer 2 network for Bitcoin. It aims to address the main blockchain’s longstanding issues of slow transaction speeds and high fees by enabling faster, low-cost BTC transactions. The platform is designed to support staking, decentralized finance (DeFi), and on-chain decentralized applications (DApps).

How Bitcoin Hyper Functions

The system operates through a multi-stage process that begins with a bridge. Users send BTC to a designated Bitcoin address monitored by the network’s Canonical Bridge. A smart contract, known as the Bitcoin Relay Program, then verifies the Bitcoin block headers and transaction proofs. Once validated, an equivalent amount of BTC is minted on the Bitcoin Hyper Layer 2 network.

Operating on a high-throughput virtual machine (SVM), the Layer 2 allows users to transact with near-instant finality and minimal costs. This environment supports more complex functions than the base layer, including staking and decentralized trading. To maintain security, transactions on the Layer 2 are batched, compressed, and validated using zero-knowledge (ZK) proofs. The network’s state is periodically committed to the Bitcoin Layer 1, inheriting the mainnet’s security. Users can withdraw their BTC back to Layer 1 by initiating a request through the Canonical Bridge, which releases the funds to their original Bitcoin address after validation.

The Role of the $HYPER Token

The Bitcoin Hyper network is powered by its native token, $HYPER. This token is used for network transactions, staking, and participating in governance. The project is making the token available through a presale event, where participants can acquire it using various cryptocurrencies or a credit card. The claiming process for the tokens depends on the currency used for purchase. Buyers using SOL will claim their $HYPER tokens on the Solana network, while those using ETH, BNB, or a credit card will claim them on Ethereum. The project plans to provide a bridge to facilitate asset movement between Solana, Ethereum, and the Bitcoin Hyper network.

The Evolving Layer 2 Landscape

Bitcoin Hyper is not the first attempt to build a second layer on Bitcoin. The Lightning Network is a well-known solution, though it continues to evolve and faces its own bottlenecks. Bitcoin Hyper positions itself as an alternative designed to provide a development ecosystem suitable for a broader variety of DApps, payment systems, and other on-chain projects.

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