What is B2

BSquared Network: Pioneering Bitcoin Layer 2 Innovation and Expanding Web3 Utility

BSquared Network (B² Network) represents a groundbreaking advancement in Bitcoin’s scalability and utility, positioning itself as a modular Layer 2 solution that integrates zero-knowledge proofs (ZKPs) and Ethereum Virtual Machine (EVM) compatibility to unlock advanced decentralised applications (dApps) on Bitcoin. By combining cryptographic security with innovative financial products like BTC-Fi, B² Network aims to transform Bitcoin from a static store of value into a dynamic ecosystem for decentralised finance (DeFi), non-fungible tokens (NFTs), and beyond. This report explores the project’s technical architecture, funding, development timeline, and ecosystem offerings, highlighting its role in bridging Bitcoin’s security with Web3’s programmability.

Overview of BSquared Network

Mission and Core Objectives

BSquared Network is a Bitcoin-native Layer 2 protocol designed to address the blockchain’s scalability limitations while preserving its decentralised security model. The project seeks to expand Bitcoin’s functionality beyond peer-to-peer transactions by enabling smart contracts, dApps, and yield-generating financial instruments. By leveraging ZK-Rollup technology and a modular architecture, B² Network achieves high throughput and low transaction costs without compromising Bitcoin’s foundational principles.

The network’s four core components work synergistically:

1. B² Rollup: An EVM-compatible execution layer that batches transactions off-chain and submits cryptographic proofs to Bitcoin.
2. B² Hub: A data availability layer that anchors transaction data and proofs directly onto Bitcoin’s blockchain.
3. B² Buzz: A BTC-Fi platform offering staking, liquidity mining, and structured products for Bitcoin holders.
4. MiningSquared: A mining pool integration that combines Proof-of-Work with DeFi strategies to optimise yield for miners.

This architecture allows developers to deploy Ethereum-style dApps on Bitcoin while enabling users to participate in DeFi without leaving the Bitcoin ecosystem.

Technical Architecture and Innovations

Modular Design and ZK-Rollup Implementation

BSquared Network employs a modular stack to separate execution, settlement, and data availability. The B² Rollup processes smart contracts off-chain using ZKPs, generating succinct validity proofs that are periodically committed to Bitcoin via Taproot transactions. This approach ensures that all Layer 2 transactions inherit Bitcoin’s security while achieving sub-cent fees and near-instant finality.

The B² Hub acts as a bridge between Bitcoin and the Rollup, storing transaction data and proofs in a format optimised for Bitcoin’s block space. By utilising Taproot’s scriptless scripts, the Hub minimises on-chain footprint while maintaining auditability.

EVM Compatibility and Developer Tools

BSquared Network’s EVM compatibility allows developers to port existing Ethereum dApps to Bitcoin with minimal modifications. Tools like MetaMask and Hardhat are supported, enabling seamless migration of decentralised exchanges, lending protocols, and NFT platforms. This interoperability positions B² Network as a conduit for Ethereum’s developer ecosystem to tap into Bitcoin’s substantial market capitalisation.

BTC-Fi and Mining Integration

The B² Buzz platform introduces novel financial primitives for Bitcoin, such as automated yield strategies and liquidity pools. Users can stake Bitcoin to earn $B2 tokens or participate in governance, effectively monetising idle BTC without custody risks.

MiningSquared integrates with Bitcoin mining pools, allowing miners to automatically allocate a portion of block rewards into B² Buzz products. This fusion of Proof-of-Work and DeFi creates a circular economy where mining revenue fuels Layer 2 activity, which in turn generates additional yield.

Investors and Strategic Backing

BSquared Network secured seed funding in January 2024 from prominent venture capital firms and crypto-native investors, including:

• HashKey Capital
• OKX Ventures
• IDG Capital
• KuCoin Ventures
• Waterdrip Capital

These investments underscore institutional confidence in B² Network’s technical roadmap and its potential to unlock Bitcoin’s DeFi capabilities. The project has also formed strategic partnerships with infrastructure providers that enhance its ecosystem’s security and interoperability.

Development Timeline and Milestones

2023–2024: Foundation and Testing

• Q3 2023: Conceptualisation of Bitcoin-native ZK-Rollup architecture.
• Q4 2023: Launch of testnet with EVM compatibility and early developer tools.
• January 2024: Completion of a significant seed funding round led by HashKey Capital and OKX Ventures.

2024–2025: Mainnet and Ecosystem Growth

• February 2024: Integration with cross-chain atomic swap protocol, enabling cross-chain liquidity for BRC-20 tokens.
• March 2024: Initiation of B² Buzz campaign, rewarding users for bridging assets to the network.
• April 2025: Token Generation Event (TGE) distributing 8.4 million $B2 tokens to early participants.

Future Roadmap

• 2025–2026: Expansion of MiningSquared’s auto-compounding yield products and governance features for $B2 stakers.
• 2026–2027: Deployment of decentralised sequencers and proposer-builder separation (PBS) to enhance network decentralisation.

Ecosystem Offerings and Use Cases

Decentralised Applications

BSquared Network’s EVM compatibility supports a growing suite of dApps, including:

• Decentralised Exchanges (DEXs): Facilitate trustless trading of Bitcoin-based assets.
• Lending Protocols: Enable undercollateralised loans using Bitcoin as collateral.
• NFT Marketplaces: Mint and trade Bitcoin-native digital collectibles.

Institutional Solutions

Partnerships with custodians provide enterprises with secure wallets and compliance tools tailored for Bitcoin DeFi. These integrations cater to institutional demand for yield-bearing Bitcoin products without counterparty risk.

Conclusion: Redefining Bitcoin’s Role in Web3

BSquared Network represents a paradigm shift in Bitcoin’s utility, merging its unparalleled security with the programmability of modern smart contract platforms. By addressing scalability through ZK-Rollups and fostering a robust BTC-Fi ecosystem, B² Network positions Bitcoin as a foundational layer for decentralised finance and Web3 innovation.

The project’s success hinges on continued technical execution and adoption by developers seeking Bitcoin’s liquidity. With backing from tier-1 investors and a clear roadmap for decentralisation, BSquared Network is poised to play a pivotal role in Bitcoin’s evolution from being merely “digital gold” to becoming a multi-functional financial infrastructure.