Bitmain Invests in BEVM: Bitcoin Layer2 Expansion Underway

Bitmain Invests in BEVM, a Bitcoin Layer2 Project Leveraging BTC for DeFi and Beyond

The Bitcoin Layer2 project, BEVM, has secured an investment from Bitmain, a leading manufacturer of cryptocurrency mining servers. Although the investment amount has not been disclosed, this marks Bitmain's initial venture into the Bitcoin Layer2 domain. Gavin Guo, BEVM Foundation's Core Builder, has unveiled plans to explore Bitcoin's hashrate and Proof of Work (PoW) ecosystem's application on BEVM, with the goal of facilitating the migration of trillions of dollars in PoW hashrate assets and a substantial quantity of BTC to BEVM. Launched in March, BEVM has already secured tens of millions of dollars in financing, with investors such as RockTree Capital and Waterdrip Capital, valuing the company at $200 million. BEVM leverages native Bitcoin technologies, achieving fully decentralized BTC cross-chain functionality and enabling trustless integration of BTC into various applications. For more information, visit BEVM's website.

Key Takeaways

• Bitmain, the leading cryptocurrency mining server manufacturer, has invested in BTC Layer2 project BEVM
• This marks Bitmain's first entry into the Bitcoin Layer2 domain
• BEVM is an EVM-compatible Bitcoin L2 network utilizing BTC as Gas
• BEVM aims to facilitate the migration of trillions of dollars in PoW hashrate assets and BTC to its network
• BEVM has secured tens of millions of dollars in funding, reaching a post-investment valuation of $200 million

Analysis

Bitmain's investment in BEVM, a Bitcoin Layer2 project, signifies the mining giant's initial dive into this domain. BEVM, an EVM-compatible network using BTC as gas, aims to facilitate the migration of trillions in PoW hashrate assets and BTC, potentially disrupting the BTC network and crypto mining industry. This move may enhance Bitmain's stake in the crypto space, prompting competitors like Canaan and MicroBT to seek similar opportunities. Meanwhile, investors like RockTree Capital and Waterdrip Capital, who've backed BEVM, could see substantial returns if BEVM's ambitious goals are achieved. Countries with significant crypto mining operations may also experience economic impacts, both positive and negative. In the long term, BEVM's success could lead to a more diversified and complex crypto ecosystem, with new financial instruments and services emerging. Conversely, its failure could result in a market correction, potentially affecting investor confidence and the broader crypto market.

Did You Know?

• Bitcoin Layer2 project BEVM: Layer2 refers to a secondary framework or protocol built on top of an existing blockchain (in this case, Bitcoin) to improve scalability by processing transactions off-chain. BEVM is an EVM-compatible (Ethereum Virtual Machine) Layer2 network that utilizes BTC as gas (transaction fees), enabling faster and cheaper transactions than the main Bitcoin blockchain.

• Fully decentralized BTC cross-chain functionality: BEVM achieves cross-chain functionality by allowing users to trustlessly integrate BTC into various applications while keeping the bitcoins secure in the original chain. Bitcoin's decentralization principle remains intact, and users maintain control over their coins without relying on intermediaries.

• Facilitate the migration of trillions of dollars in PoW hashrate assets and BTC to BEVM: Bitmain's investment in BEVM targets the migration of Proof-of-Work (PoW) hashrate assets and Bitcoin to BEVM. Hashrate refers to the total computational power dedicated to mining a cryptocurrency's blocks. By attracting trillions of dollars in PoW hashrate and substantial quantities of BTC, BEVM seeks to solidify its position and increase the network's liquidity.