BEVM, which has not yet issued tokens, has clearly stated that 0.5% of its total token supply will be allocated for this airdrop. On April 5th, Binance Web3 Wallet and Bitcoin Layer2 project BEVM collaborated to launch an airdrop activity. BEVM, which has not yet issued tokens, has explicitly stated that 0.5% of its total token supply (10.5 million tokens) will be allocated for this airdrop.
It is worth noting that even though there are many “Bitcoin L2” projects in the market, Binance has not yet collaborated with any of them. So why can BEVM collaborate with Binance? What potential opportunities are hidden behind this collaboration?
Binance “needs” Bitcoin L2. If we look back at the competition pattern of CEXs around the Bitcoin ecosystem since 2023, we will understand the strategic significance of Bitcoin L2 in the competition among CEXs’ Web3 wallets in 2024.
It is well known that OKX was undoubtedly the biggest winner in the Bitcoin ecosystem wave in 2023. From cooperating with UniSat Wallet to build the BRC-20 industry standard, to being the first to support BRC20 inscription and BTC NFT trading and staking, and launching Bitcoin ecosystem standards such as BRC20-S and inscription tools, OKX quickly captured market demand and user traffic in the early stages.
This also helped OKX’s Web3 wallet, which supports BRC20 inscription and BTC NFT trading and staking, shine in 2023. It not only became an essential tool for many users in the industry but also replaced well-established wallets like MetaMask for some users, becoming the most prominent newcomer in the crypto wallet track.
At the same time, as the leading exchange, Binance has fallen behind OKX in terms of Web3 wallet and Bitcoin ecosystem layout, resulting in the loss of a large amount of traffic related to the Bitcoin ecosystem and missing out on the potential huge market cake of the Bitcoin ecosystem. Therefore, since the end of last year, Binance’s construction layout of Web3 wallet and Bitcoin ecosystem has been accelerating and given a higher priority.
With the continued consolidation of OKX and other competitors’ advantages, for Binance, how to find a breakthrough and achieve a curve overtaking in the Bitcoin ecosystem has become a crucial issue in 2024.
In all narratives, infrastructure projects usually play the role of “water sellers” and generally become a necessity in the construction of the track. Therefore, for Binance, supporting BTC L2 infrastructure projects is a good method and strategy:
By supporting a leading player in Bitcoin L2 as a starting point, attracting and carrying the user flow and community attention of the Bitcoin ecosystem, and opening the channel for market capital inflow, Binance can achieve a curve overtaking in OKX’s Bitcoin ecosystem layout.
From this perspective, the collaboration between Binance and BEVM may be a touchstone. In addition, as top exchanges often have abundant Web3 resources, whether it is funding support or product windows, they can greatly catalyze Bitcoin L2 projects and fully unlock their liquidity. OKX has already laid out Bitcoin L2 projects like B2 Network and Bitcoin ecosystem project Bitmap Tech (formerly Recursiverse).
Therefore, for Binance, timely supporting its own BTC L2 team is the key to compete with OKX in the long-term competition for Bitcoin ecosystem in 2024. This will also greatly expand the volume and gameplay of the entire Bitcoin L2 track and may become one of the catalysts for a new round of market trends.
Why BEVM?
In general, the key to the collaboration between Binance and BEVM lies in accelerating the embrace of the Bitcoin L2 ecosystem, which is an urgent need for construction. It further expands Binance’s leading position in the new Bitcoin narrative and lays the foundation for the growth of new DApps, new users, and the TVL of the Bitcoin ecosystem.
Of course, besides BEVM, there are many other “Bitcoin L2” projects on the market. Why did Binance choose BEVM?
First of all, from a certain perspective, BEVM has always been considered a “veteran” in the Bitcoin ecosystem that has been tested by time and the market. Little-known is that the BEVM team was created in 2017, and founder Gavin participated in the development of the central bank digital currency (DCEP) in 2016 and wrote the first viable CBDC demo based on Bitcoin and Ethereum blockchain.
In 2017, they completed the underlying code of the well-known public chain Bytom from scratch. After leaving Bytom at the end of 2017, they created BEVM.
Among them, ChainX, the BTC L2 solution based on Polkadot launched by BEVM in 2018, achieved 100,000+ BTC cross-chain and 500,000+ BTC Hash Lock. In 2021, based on the Bitcoin Taproot upgrade, they completed a brand new BTC L2 solution based on Schnorr Signature and MAST Contract. It has become one of the widely adopted standards in the Bitcoin L2 field.
Based on these achievements, in May 2023, BEVM’s team summarized nearly 7 years of BTC L2 entrepreneurship and practical experience and proposed a fully decentralized Taproot-based BTC L2 solution called Taproot Consensus.
Taproot Consensus can achieve fully decentralized Bitcoin management through a BFT consensus network composed of 1000+ Bitcoin light nodes, thereby solving the problem of introducing BTC into the second-layer network in a trustless manner, and ultimately achieving Bitcoin scalability.
It is worth noting that most BTC L2 solutions on the market are diverse and complex in terms of technical implementation. From a technical perspective, they can generally be divided into five categories: Bitcoin sidechains, UTXO+ client verification, Taproot Consensus, multi-signature + EVM, and Roullp.
Among them, in addition to Bitcoin sidechains and UTXO+ client verification solutions, which have poor scalability and high implementation thresholds, the majority of the so-called Bitcoin L2 core gameplay is still “EVM+ multi-signature cross-chain bridge,” which is fundamentally similar to introducing BTC into the EVM ecosystem with ERC20 wrapped tokens like tBTC and renBTC back in the day.
However, although multi-signature solves the security risks of single points, it is difficult to avoid centralization risks. Therefore, no matter how the project operators of Bitcoin L2 view the core issue of “decentralization” in the crypto world, it is far better to design mechanisms to make Bitcoin L2 “unable to do evil” than to believe that Bitcoin L2 will “not do evil.”
Taproot Consensus, based on Bitcoin’s native technology, truly achieves fully decentralized BTC L2, and this solution is superior to other BTC L2 projects on the market in terms of technical nativeness, decentralization, and feasibility. I believe this is also an important reason why Binance Web3 chose BEVM as its first collaborator for BTC L2 projects.
It is also worth mentioning that BEVM recently completed a funding round with a valuation of $200 million, raising tens of millions of dollars. It received investments from nearly 20 top crypto institutions, including Rocktree Capital, Waterdrip Capital, Arkstream Capital, ViaBTC Capital, MH Venture, and Mapleblock, which demonstrates BEVM’s recognition in the capital market. BEVM officially launched its mainnet on March 28th and has already attracted over 600,000 user addresses in just one week, demonstrating its market and community competitiveness in the BTC L2 field.
What’s next?
Great changes often start from small beginnings, and the market logic always involves hidden opportunities. BEVM, as Binance’s first announced collaboration in Bitcoin L2, undoubtedly leaves much room for imagination. What will Binance do next? Will BEVM be one of Binance’s first investments in BTC Layer2? Will BEVM be the first BTC Layer2 to be listed on Binance Exchange? The answers to all these questions are yet to be revealed.
But one thing is certain: this collaboration is just the beginning of Binance’s Bitcoin L2 strategy and an important exploration of Binance’s own Bitcoin L2 map.
In fact, based on Binance’s past style, conventional Binance Labs incubator projects usually follow a fixed path: “Obtain investment – new coin mining/listing trading pairs.” From this perspective, the first airdrop collaboration between Binance Web3 and BEVM is probably just the beginning, and BEVM may become a part of Binance Labs’ portfolio. We can look forward to it.
It is worth mentioning that Binance Web3, which rarely initiates online Twitter Spaces, recently launched a Twitter Space with a Bitcoin ecosystem theme, and the only BTC L2 project guest was BEVM. This indicates an extraordinary relationship!
In any case, as the most imaginative Bitcoin L2 track, just like Ethereum Layer2 projects like Arbitrum and Optimism in 2021, there will undoubtedly be several billion-dollar or even trillion-dollar projects. Binance’s bet on the BTC L2 track is both limited by the track’s potential and the general trend. No exchange would be foolish enough to ignore such a huge and appealing blue ocean market like the Bitcoin ecosystem.
For ordinary users, identifying projects and seizing opportunities are the core of capturing this wave of wealth opportunities. As the first BTC L2 project to collaborate with Binance Web3, BEVM is undoubtedly a BTC L2 worth paying close attention to.
Tags: ACE, Arbitrum, BEVM, L2, Optimism, Taproot, WEB3, Ethereum, Binance, Bitcoin, airdrop
Source: https://www.bitpush.news/articles/6603034
Note: The translation is a direct translation and may not convey the same stylistic elements as the original text.