Bitfinity Network Launches EVM-Compatible Bitcoin Layer 2, Backed by $12 Million in Funding

Bitcoin DeFi Layer-2

Editor

Veronika Rinecker

Editor

Veronika Rinecker

About Author

Veronika Rinecker is based in Germany and studied international journalism and media management. She specializes in reporting on topics such as politics and regulation, energy, blockchain, and...

Author Profile

Share

Copied

Last updated:

November 19, 2024 08:23 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more

Bitfinity Network, a Layer 2 (L2) for Bitcoin (BTC), has officially launched its mainnet with $12 million in funding.

Built as an Ethereum Virtual Machine (EVM) Layer 2 solution for Bitcoin, Bitfinity offers developers the ability to create smart contracts directly on the Bitcoin network, similar to Ethereum (ETH). This integration aims to expand the reach of Bitcoin-native decentralized finance (DeFi) to a wider user base while eliminating reliance on centralized custodians.

📢As our Mainnet goes live today.💫

🤝We are thrilled to announce that #Bitfinity has partnered with over 60 leading projects to support a stronger cross-chain ecosystem.🌐

We’re excited to share the amazing projects that are now part of the Bitfinity ecosystem! 🤩 pic.twitter.com/8tl87Lmeda

— Bitfinity Network (@bitfinitynet) November 19, 2024

Strong Investor Backing

According to the company’s Nov. 19 press release shared with CryptoNews, the launch coincides with the listing of the Bitfinity token (BTF) on major cryptocurrency exchanges including KuCoin, Huobi, MEXC, HTX, and Gate.io.

Additionally, Bitfinity raised over $12 million in combined funding and token sales. This sum includes $5 million through over-the-counter (OTC) sales, primarily from the community, along with support from Crypto Banter, AshCrypto, KuCoin Labs, and ParaFi.

The funding builds on a prior $7 million round earlier in 2024 which saw participation from industry heavyweights like Polychain Capital, Draft Ventures, and Warburg Serres, among others.

Boosting Bitcoin Speed and Security

Bitfinity’s Layer-2 solution offers significantly faster transaction speeds compared to the traditional Bitcoin network, with block times “of just 1-2 seconds”, as per the press release.

Bitfinity also leverages the Internet Computer Protocol’s (ICP) Chain Fusion technology. This technology uses a special method called threshold signature, which eliminates the need for central authorities. This way, users have more control and security over their transactions.

In addition, Bitfinity integrated Bitcoin Runes with the ICP ecosystem through the Omnity Bridge, improving the functionality and accessibility of Bitcoin-native assets. The design of this integration, which distributes Bitcoin private keys across 34 different signers, reduces the risk of a single point of failure.

Building on the Internet Computer

Bitfinity is built on the Internet Computer to deploy smart contracts and other complex programs on the Bitcoin network.

The latest report issued by the DFINITY Foundation, a Swiss-based organization behind the Internet Computer blockchain, highlights a significant surge in the adoption of the ICP ecosystem.

Its Chain Fusion protocol, which enables seamless communication between different blockchains like Bitcoin and Ethereum, saw a 1,230% increase in activity over the past year. Additionally, the number of messages processed through Chain Fusion surged by 2,040%.

This growth reflects a broader trend within the Internet Computer ecosystem. Overall network activity increased by 150% year-over-year, and the number of full-time developers working on the platform grew by 30%.