Conflux Network Introduces EVM-Compatible Bitcoin L2 Solution
Conflux Network, a blockchain organization based in China, has revealed its plans for an innovative EVM-compatible Bitcoin Layer 2 (BTC L2) solution. This announcement caused the native token of Conflux, CFX, to surge by more than 8%. Prior to this update, the CFX price was in decline.
Overview of Conflux’s Bitcoin L2 Solution
The Bitcoin L2 solution by Conflux will enable BTC to be used as the primary currency for gas fees. It will also facilitate seamless bridging of various asset classes from Bitcoin and effortless transfers to the Bitcoin chain. Additionally, it will integrate Bitcoin’s store-of-value properties into Conflux’s Proof-of-Stake consensus protocol, where BTC staking contributes to network security and governance.
The security framework of the solution involves Verifiable Secret Sharing (VSS)-based key sharing, which prevents single points of failure and distributes BTC asset management responsibilities across over 300 nodes. The PoS consensus protocol not only records the latest ledger state onto the Bitcoin network but also acts as a reliable Bitcoin Oracle by providing extensive chain-related metadata through internal contracts. This enables efficient access to Bitcoin blockchain events for on-chain contracts.
Conflux Network has scheduled the Testnet launch for February-March 2024 and the Mainnet launch for May 2024. The aim is to provide developers with enhanced opportunities for building decentralized applications that can seamlessly interact across different blockchains. This development has generated significant excitement and led to a substantial increase in the CFX price.
This paradigm shift expands Bitcoin’s utility and encourages innovation in decentralized finance (DeFi) and blockchain-based applications. The combination of Bitcoin’s strength with Conflux’s advanced technology stack offers users a unique proposition. They can actively participate in network security and governance through staking mechanisms while gaining access to a wider range of decentralized applications.
CFX Price Rallies 8% Today
Following the aforementioned update, the CFX price surged by over 8% and surpassed the $0.22 mark. Previously, it was trading at around $0.19, experiencing significant declines. At the time of writing, the CFX crypto price increased by 6.23% to $0.2203 on Thursday, January 18.
The cryptocurrency held a market capitalization of $796.02 million, reflecting a 6.18% increase. The trade volume also saw a substantial surge of 70.52%, reaching $118.45 million. Additionally, it reached a new one-month peak of $0.2293. Impressively, the 7-day returns exceeded 15%, while the 1-month returns surpassed 22%.
Hot Take: Conflux’s Bitcoin L2 Solution Enhances Utility and Drives Innovation
The introduction of Conflux Network’s EVM-compatible Bitcoin Layer 2 solution is set to revolutionize the crypto industry. By incorporating Bitcoin’s properties into Conflux’s protocol, users can enjoy enhanced functionality and seamless interactions across blockchains.
This development not only expands Bitcoin’s utility but also fosters greater innovation in decentralized finance (DeFi) and blockchain-based applications. The merging of Bitcoin’s strength with Conflux’s advanced technology stack creates a unique proposition for users, allowing them to actively participate in network security and governance while gaining access to a broader range of decentralized applications.
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