By
Temitope Olatunji
April 26th, 2024
Tron users will be able to participate in re-staking initiatives in major Bitcoin L2 networks.
Bitcoin Layer 2 (L2) has received much interest lately. Michael Saylor, in a recent CNBC interview, announced that his firm MicroStrategy would pivot to focus on Bitcoin software development. Justin Sun, the founder of Tron, has joined the Bitcoin L2 race too. Sun unveiled Tron’s ambitious plan, through X (formerly Twitter), to integrate Bitcoin and Its Layer 2 solutions.
#TRON Announces Its Bitcoin Layer 2 Solution and Road Map
Today is a significant day for #TRON.
Let's make #Bitcoin fun again!
As the protocol behind the world's largest stablecoin market, boasting $55 billion, and the decentralized finance Total Value Locked (TVL) of $22…
— H.E. Justin Sun 孙宇晨 (@justinsuntron) February 15, 2024
Tron aims to achieve this ambitious vision in three stages. The first phase, dubbed “Stage Alpha (α)”, will integrate Tron tokens like TRX, USDT, JST, SUN, NFT, WIN, and USDC into the Bitcoin network. It will achieve this by building a cross-chain technology to bridge Tron and Bitcoin networks seamlessly.
Additionally, Tron DAO will invest in developing user-friendly wallets and tools that support a wide range of BRC-20 tokens. For the unfamiliar, BRC-20 tokens are fungible tokens created on top of the Bitcoin Ordinals, a protocol on the Bitcoin network. Ordinals is a relatively new and innovative approach that enables data inscription on individual Satoshis (smallest unit of Bitcoin). Some of the standard BRC-20 tokens include ORDI and VMPX.
The second stage of the roadmap is dubbed “Stage Beta (β)”. It will encompass collaborations and partnerships with leading Bitcoin Layer 2 protocols. The collaborations will allow Tron users to participate in re-staking initiatives in major Bitcoin L2 networks. Tron believes that its diverse asset portfolio, the largest stablecoin market worth $55 billion alongside $22 billion in TVL (total locked value), will drive the growth of the Bitcoin Layer 2 ecosystem.
The roadmap’s final and delicate phase is “Stage Gamma γ”. Tron’s ultimate goal is to create a Bitcoin Layer 2 solution that integrates Tron, Bitcoin, and BTTC (native token to BitTorrent scaling solution, BitTorrent Chain, that works concurrently with Tron blockchain).
The final Bitcoin L2 solution by Tron aims to get the best of the two worlds: Proof-of-Stake (PoS) speed and low fees alongside the security from PoW (Proof-of-Work) and UTXO (Unspent Transaction Output) model used by Bitcoin.
This ambitious plan positions Tron amongst the top leaders in blockchain interoperability. Although intricate details of Tron’s Bitcoin L2 solution are not out yet, the roadmap is a commitment to revitalizing the Bitcoin network.
How Tron Price Reacted
Such an ambitious plan on the world’s largest blockchain network could benefit Tron’s native token, TRX, by driving its utility. At the press time, TRX was above $0.12, a key resistance level in H2 2021, and traded at $0.131. Similarly, Bitcoin hovered above $52K, which could be a double bullish impetus to TRX. Should the TRX/USDT pair reclaim $0.14, the token will only be 30% away from its ATH (all-time high) of $0.18.