Bitfinity Network Launches Bitcoin L2 with $12M Support
Bitfinity Network, a new Bitcoin Layer-2 (L2) solution, has launched $12 million in funding to create a decentralized finance (DeFi) functionality compatible with Bitcoin's Ethereum Virtual Machine (EVM).
The project has already received support from institutional investors such as Polychain and Parafi, along with $5 million in over-the-counter (OTC) token sales by 2024 – primarily contributed by the community.
A news release shared with Cointelegraph said Bitcoin L2 uses Internet Computer Protocol (ICP) Chain Fusion technology to enable bitcoin-native assets to “operate in an ecosystem compatible with Ethereum.”
After the price of BTC recently broke $92,000 and interest in the asset's utility grew beyond the store of value, fresh L2 solutions are opening new avenues for Bitcoin (BTC).
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Support from investors
The funding includes $7 million from celebrity backers, Polychain Bacon Fund, Parafi, Draft Ventures and Warburg Ceres, among others.
Funded by foundational contributors and crypto influencers, an additional $5 million raised primarily through the community will help fuel the adoption and development of the Bitfinity Network platform.
A spokesperson for Bitfinity told Cointelegraph that “institutional ETFs are on the horizon and a sign of a new regime for Bitcoin with more accessible institutions,” the platform is seeing a change in dynamics.
“At Bitfinity, we are […] Pioneering sidechain infrastructure coverage to increase scalability, unlock cross-chain functionality, and expand Bitcoin applications.
Related: Internet Computing Crosschain Protocol Usage 13x Amid Bitcoin DeFi Boom
Security updates and DApp hosting plans
A Bitfinity spokesperson told Cointelegraph that the security of the L2 network is strengthened by “chain-key technology with a strong authentication protocol.”
“Chain-Key supports large signature committees capable of handling Bitcoin Schnorr and ECDSA transactions, providing stronger security than traditional multi-sigs used by most L2s.”
The spokesperson said the ecosystem plans to host decentralized applications (DApps) such as Sonic, Chapswap, Lendfinity and Omnity Bridge.
“Bitfinity has the backing of the founder of Liquity, the multi-billion dollar TVL lending and borrowing protocol, and we plan to introduce similar solutions to our platform soon.”
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Internet computer usage up to 13x
Powered by BTC-native applications, ICP's crosschain messaging protocol Chain Fusion saw 1,230% year-over-year usage growth in a Nov. 4 report by developer The Definity Foundation.
Spike uses ICP for BTC applications like Rainbow Protocol, Tap Protocol, and Bitfinity to deploy smart contracts and complex programs on the BTC network.
The Definity Foundation told Cointelegraph that Chain Fusion will connect to the network “directly without the use of trusted bridges” and enable smart contracts for BTC via ICP.
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