The Bitcoin layer two blockchain ecosystem has been growing significantly for the last couple of months with Bitcoin’s transaction volume rising rapidly since innovations are built on top of it. 

Innovations occur after the emergence of layer two blockchains which transformed Bitcoin from only being a place to transact coins to now being able to host Decentralized Applications on top of it.

Comparing Bitcoin’s Layer Two Blockchains

There are several layer two blockchains that are available on the Bitcoin Ecosystem, but three stands out from the crowd as it is more complete. 

Internet Computer Protocol 

The first one is ICP or the Internet Computer Protocol, which is a modular blockchain that currently supports developments on the Bitcoin Blockchain. 

Developers can now launch DApps on top of the Bitcoin Blockchain through the Internet Computer Blockchain, thanks to the new mechanisms implemented on the Blockchain. 

There is also a special token called ckBTC which is a form of Bitcoin that make transactions on the Bitcoin Blockchain being able to run both on the Internet Computer Blockchain and the Bitcoin Blockchain. 

Looking at the ckBTC itself, transactions are still going up as there is currently $14.29 Million being locked in the token. 

Which means ICP contributes more than $14 Million of transaction volume into the Bitcoin Blockchain, which is relatively low. 

However, the number of tokens being locked on ICP is still low as well, as there are not many DApps built on top of it. 

Even though it still lacks development, ICP can be a great alternative as it is still more complete than the Lightning Network. 

The Lightning Network has less capabilities compared to the ICP Blockchain, but it has more transaction volume as it governs a whole country’s microtransaction, which is El Salvador. 

Stacks Blockchain

Next one is the Stacks Blockchain, which is currently the most popular layer two blockchain on the Bitcoin Ecosystem.

It currently has more DApps than others that are built on top of it to integrate with the Bitcoin Blockchain, as developers prefer the blockchain than others 

However, its total value locked or TVL is still relatively low compared to other blockchains, this is because most developers are still trying to adjust how to build on top of it.

It is predicted that the number will increase in the long run, especially going into the bull market of 2025 that will trigger new DApps to be built because of how dominant Bitcoin is. 

While not all of them are built on top of Stacks to integrate with Bitcoin, most of these DApps want to integrate with Bitcoin, with some already connected and some still on the way. 

RootStock Blockchain

Last is the RootStock Blockchain which is a layer two blockchain for Ethereum Virtual Machine or EVM Based Blockchains as well as the Bitcoin Blockchain. 

Because of how it was created, RootStock can be used by developers to build smart contracts, DApps, and Protocols not only on top of Ethereum, but also other EVM blockchains like BNB Chain, and Bitcoin. 

This is why it currently has more volume and TVL compared to other layer two blockchains on the Bitcoin Ecosystem, because it does not only host DApps on the Bitcoin Ecosystem but on other ecosystems as well.

The blockchain is not focused on Bitcoin, which is why it might be more complicated to use, even though there are documents to help developers use the blockchain. 

Conclusion

Overall, if you are looking to build DApps on top of Bitcoin, the one blockchain that is recommended is Stacks, as it is cheap and relatively easy to use. 

However, if you are an airdrop hunter or a degen that wants to look for new cryptocurrencies, you can explore all these blockchains to find the best opportunity for you. 

Official Website

Website: https://www.bitrue.com/

Sign Up: https://www.bitrue.com/user/register

Disclaimer:

The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.