What is B² Network?

IntermediateApr 13, 2024
B² Network, a layer-2 solution on the Bitcoin Blockchain addresses the scalability of the Bitcoin network by introducing a two-layer infrastructure that allows for faster transactions and lower costs without compromising on security.
What is B² Network?


One of the most prominent challenges of the Bitcoin network has been scalability, that is, its inability to handle large amounts of transaction data on its platform in a short period. To address this issue, B² Network, a layer-2 solution was created. The B² Network is a Layer-2 solution that bolsters transaction speed and broadens application diversity without sacrificing security. The purpose of this improved-upon network is to metamorphose Bitcoin into a versatile platform that would pave the way for groundbreaking applications such as DeFi, NFTs, and other decentralized systems. This article considers what B² network is and how it improves the current Bitcoin platform.

What is B² Network?

The B² network is a Layer-2 solution designed specifically for the Bitcoin blockchain. It is a system built on top of Bitcoin that aims to address some of Bitcoin’s limitations without compromising on security.

What led to the Introduction of the B² Network?

Since its introduction in 2008, Bitcoin has transformed the financial system by introducing the concept of decentralization, trustless operations, and transparent ledger. This has led to a significant increase in Bitcoin’s adoption and user growth worldwide. However, while its widespread adoption has yielded positive results, it has also brought about several challenges, particularly in scalability.

Source: Master The Crypto

The Bitcoin network has a limit on the size of blocks in its blockchain. This limit is put in place to ensure that transactions are validated efficiently. However, a block size limit can also restrict the number of transactions processed per unit of time. As more users join the network, this restriction has resulted in higher transaction fees and longer confirmation times. To solve this problem, some solutions, such as increasing the block size, were considered, but it raised concerns about centralization.

As a result, the focus shifted to Layer 2 solutions. Layer 2 solutions are secondary protocols built on the existing blockchain, which is Layer 1. The aim of Layer 2 solutions is to enhance transaction rates without altering the base layer, thus preserving decentralization.

One such Layer 2 solution is the B² Network. The B² Network aims to address scalability concerns and drive innovation by enabling microtransactions and immediate settlements, and supporting decentralized finance (DeFi) applications on the Bitcoin network.

Why Does Bitcoin Need a Layer-2 Solution?

Bitcoin faces two significant limitations that affect its performance: technological constraints and asset liquidity.

Technological Constraints

  1. Network Performance: The creators of Bitcoin focused primarily on decentralization and network security rather than on peak performance. As a result, Bitcoin has a limited block size and 10-minute block intervals, which restricts its throughput. This restriction means that Bitcoin can only process a few transactions per second. As the user base of Bitcoin has expanded over time, this limitation has become increasingly apparent, leading to network congestion, transaction delays, and surging transaction fees.
  2. Lack of Turing Completeness: Bitcoin’s scripting language was intentionally designed to be non-Turing complete, which enhances network security and simplicity. However, this design choice makes it impossible for Bitcoin to execute complex smart contracts, limiting its potential in the decentralized application domain.
  3. Transaction Fee Concerns: Due to the increase in Bitcoin network traffic, users must pay higher transaction fees to ensure their transactions receive priority. As a result, small-value or frequent transactions are economically impractical.

Source: Faster Capital

Asset Liquidity

  1. BTC Asset Liquidity Issues: Bitcoin, widely recognized as the “gold” among digital assets, faces significant challenges in terms of liquidity. According to statistics from September 18, 2023, nearly 95% of BTC remained stagnant and weren’t involved in any transactions in the past month. This behavior suggests that Bitcoin is more often viewed as a long-term value storage instrument than a liquid asset, even though many investors have embraced it.

Number of transactions per month on a logarithmic scale on the Bitcoin Network

(Source: Wikipedia)

  1. Challenges with New BTC Derivative Assets: Research has shown that the market for new Bitcoin derivative assets, such as Ordinals, BRC20, and others, is still in its early stages. Also, due to challenges such as high entry barriers, operational complexities, and limited application scenarios, less than 1% of BTC addresses have entered this market. As a result, the liquidity and market depth of Bitcoin derivative assets are affected.
  2. The Influence of EVM-Compatible Ecosystem Assets: Many DeFi products tied to BTC as their base currency have emerged on EVM-compatible chains. These products allow users to leverage Bitcoin in a decentralized manner, bypassing the inherent limitations of Bitcoin itself. This also highlights the scalability and versatility issues of Bitcoin.
  3. The role of centralized exchange assets within centralized exchanges: BTC is the second most traded currency, with USDT stablecoin being the first. The absence of Bitcoin from DeFi product lineups forces many users to use centralized exchanges for trading, which increases centralized risks and reduces Bitcoin’s influence in the decentralized finance domain.

B² Network: The Practical Layer-2 Solution to Bitcoin Challenges

B² Network solutions have been introduced to address technical and asset liquidity challenges. A B² Network is a secondary network built on top of the primary chain, Bitcoin Network, to provide better performance, lower transaction costs, and a richer application landscape. Using a B² Network, Bitcoin can instantly process transactions, significantly reducing transaction costs and enabling complex smart contract functionalities. This transition will position Bitcoin as a truly decentralized financial platform, serving billions of users worldwide.

B² Network solutions utilize roll-up technology with zero-knowledge proof to allow users to conduct off-chain transactions without constant confirmations on the main chain. Furthermore, by introducing Turing-complete smart contract capabilities, B² Networks can enable unprecedented application possibilities for Bitcoin, including DeFi, NFTs, and other decentralized applications.

How Does B² Network Work?

The B² network tackles Bitcoin scalability challenges with a two-layer architecture. These are the Rollup Layer and Data Availability Layer.

Rollup Layer

This is the layer that handles the actual transactions. It leverages Zero Knowledge Proofs (ZK-Proofs) to significantly improve speed and cost.

An analysis of How the B² Network Operates (Source: Gate.io)

The Rollup Layer performs three main functions:

  • Transaction Batching: The B² network combines multiple transactions into batches.
  • zk-Proof Generation: These batches are processed to generate zk-Proofs, cryptographic proofs that validate the transactions’ authenticity without revealing all the details. This way, the transaction data remains confidential while ensuring its legitimacy.
  • Verification and Settlement: The zk-Proofs are then submitted to the Bitcoin network (Layer 1) for verification. Bitcoin miners only need to process the zk-Proofs and not the entire transaction data, making the verification process faster and cheaper.

Transaction Flow in the B² Network (Source: B² Network Litepaper)

Data Availability Layer (Layer 1)

This layer is built on top of the Bitcoin blockchain, ensuring the security and immutability of transactions processed on the rollup layer. Its main functions include:

  • Data Storage: The Bitcoin network stores the ZK-Proofs and minimal transaction data necessary for fraud challenges.
  • Fraud Challenges: In case of a dispute, anyone can challenge the validity of a transaction by revealing the actual transaction data. This data can be reconstructed from the zk-Proofs stored on Bitcoin. Bitcoin miners then verify the challenged transaction, adding a layer of security.

Key Benefits of this Two-Layer Approach

  • The two-layer approach provides several benefits, such as faster transaction processing times. This approach allows transactions to be processed off-chain and uses zk-Proofs, resulting in significantly reduced processing time compared to the Bitcoin network.
  • Additionally, batching transactions and ZK-Proof verification increases efficiency, which leads to lower transaction fees. Moreover, the B² network inherits the same level of security as Bitcoin since it leverages Bitcoin’s Proof-of-Work (PoW) mechanism for data storage and fraud challenges.

Other Features of the B² Network

EVM Compatibility: B² Network is compatible with the Ethereum Virtual Machine (EVM), allowing developers to migrate existing Ethereum dApps to the B² network easily.

Account Abstraction: B² Network simplifies user experience with features like account abstraction, which makes it easier for users to interact with the network.

Account Abstraction in the B² Network (Source: Gate.io)

B² Odyssey

The B² Odyssey program is an initiative that aims to introduce users to the B² Network. Users will be rewarded with Odyssey points for completing tasks on the testnet, a simulated version of the actual network. This enables users to experiment without using real cryptocurrencies.

To participate in the program, users need to connect their wallet and complete specific tasks. The website provides a detailed outline of these tasks. By completing the first task, users can earn up to 30 Odyssey points, designed to help them understand the B² Network better.

The second task requires users to experiment with B² DApps and test their skills by assessing their ability to deposit Bitcoin from the testnet to B² testnet via faucets. This task can earn users 100 points as they withdraw from the B² testnet to the Bitcoin testnet. The Odyssey points earned from completing these tasks can help secure future benefits on the mainnet.

The third task is crucial as it requires users to share the B² Network with their friends and generate referrals. For every successful referral, users can earn ten extra points.

B² Buzz

B² Buzz was a program aimed at attracting users, encouraging interaction with the platform, and generating excitement for its upcoming mainnet launch. This program functioned similarly to a staking program but with a twist. Instead of users simply locking away their crypto, they were able to deposit major cryptocurrencies like Bitcoin and Ethereum. These deposits were then converted into “Parts,” the building blocks for virtual “Mining Rigs.”

These virtual contraptions simulated the process of mining Bitcoin, just like the real-world mining rigs. However, instead of earning BTC, users were rewarded with B² Network’s native token, B². The B² Buzz was an engaging approach that allowed users to experience the thrill of mining while participating in the B² Network ecosystem.

The B² Network Buzz program was a major success, with reports indicating that it concluded with a total value deposited of $663 million. This figure highlights the significant interest generated by the program.

Use Cases of B² Network

B² Network EVM Compatibility makes it accessible to a wider range of dApps

(Source: Gate.io)

The B² Network aims to overcome some of the inherent limitations of Bitcoin by introducing new functionalities. This could lead to several potential use cases for the B² network, including:

  • DeFi (Decentralized Finance): Bitcoin’s slow transaction speeds and high fees have made it difficult for DeFi applications to be built on the platform. However, the B² network’s faster and cheaper transactions could pave the way for DeFi applications built on Bitcoin. This would enable borrowing, lending, and trading of Bitcoin-based assets without the limitations of the main Bitcoin network.
  • NFTs (Non-Fungible Tokens): The B² network’s faster processing system could enable the creation and trading of NFTs on the Bitcoin Blockchain. This could lead to unique Bitcoin-based digital collectibles or other NFT use cases.
  • SocialFi (Social Finance): SocialFi combines social media with finance. The B² network could enable social applications integrated with Bitcoin, leading to features like micropayments or Bitcoin-powered social rewards.
  • Enhanced Security for Existing Bitcoin Assets: The B² network can handle complex transactions with security benefits thanks to its zk-proof verification and commitment roll-up mechanism. This could be valuable for securing Bitcoin-related assets like Ordinals (inscriptions directly on the blockchain).

The B² network aims to make Bitcoin more versatile and enable a broader range of applications beyond storing and transferring value. This could establish Bitcoin as a leader in application scenarios within the cryptocurrency space.

Advantages of B² Network

  1. Faster Transactions: The B² network uses zk-Proofs to speed up transaction processing, leading to quicker confirmation times than the Bitcoin network.
  2. Lower Costs: By batching transactions and using zk-Proof verification, the B² network has lower transaction fees than the Bitcoin network.
  3. Enhanced Scalability: The two-layer architecture of the B² network allows it to handle a higher volume of transactions without compromising efficiency.
  4. Security Inherited from Bitcoin: The B² network benefits from the security of the established Bitcoin blockchain by relying on its Proof-of-Work mechanism for data storage and fraud challenges.
  5. EVM Compatibility: The B² network is compatible with the Ethereum Virtual Machine (EVM), making it easy for developers to port existing Ethereum dApps to the network, potentially accelerating development and adoption.
  6. Account Abstraction: The B² network simplifies the user experience by offering features like account abstraction, making it more user-friendly to interact with the network.
  7. Broader Application Potential: The B² network can enable new use cases for Bitcoin, such as DeFi, NFTs, and SocialFi applications, expanding the capabilities of the Bitcoin ecosystem.

Disadvantages of B² Network

The following are some of the disadvantages of using the B² network:

  1. New Technology: The B² network is a relatively new technology, and its long-term security and stability have yet to be proven in real-world use.
  2. Centralization Risks: While the B² network uses the security of Bitcoin, the specific implementation of zk-Proofs and fraud challenges within B² could introduce potential centralization risks if not designed carefully.
  3. Limited Adoption: Since it is a new Layer 2 solution, the B² network currently has a smaller user base than established solutions. This can affect network effects and liquidity.
  4. Dependence on Bitcoin: The overall security of the B² network is still tied to the blockchain’s security. Any vulnerabilities in Bitcoin could potentially impact B² as well.
  5. Technical Complexity: Understanding zk-Proofs and the intricacies of the two-layer architecture can be challenging for non-technical users, potentially hindering mainstream adoption.


The B² Network is a layer 2 solution designed to address the scalability challenges that have hindered the application of Bitcoin as the most popular cryptocurrency. It builds upon the existing Bitcoin structure and consists of two fundamental layers: the Rollup layer and the Data Availability Layer. The network offers faster transactions, lower costs, enhanced scalability, and improved security. Despite its powerful features, however, the B² Network has experienced low adoption rates due to its relative newness. Nevertheless, it has proven to be a promising solution to the Bitcoin network’s challenges.

Author: Paul
Translator: Cedar
Reviewer(s): Matheus、Wayne、Ashley
* The information is not intended to be and does not constitute financial advice or any other recommendation of any sort offered or endorsed by Gate.io.
* This article may not be reproduced, transmitted or copied without referencing Gate.io. Contravention is an infringement of Copyright Act and may be subject to legal action.
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