The Decentralised Autonomous Organization (DAO) of the Tron blockchain (TRX) is reportedly set to launch a new layer 2 blockchain for integration with Bitcoin.
This move aims to enhance the interoperability capabilities of the Tron blockchain and make the Tron ecosystem available within the Bitcoin ecosystem and vice versa, thereby boosting synergy within the crypto world.
Tron DAO’s Layer 2 Bitcoin Integration Roadmap
Through the official Twitter account of Tron DAO, led by Justin Sun, the Tron blockchain team has announced its new plan to create a blockchain that can connect the Bitcoin blockchain with the Tron ecosystem.
This announcement was made just last week, detailing that the launch of this blockchain will occur in three phases.
While the specific timing of these phases is currently undisclosed, detailed information regarding what each phase will entail has been provided.
The first phase involves the initial launch, where Bitcoin will be directly available on the Tron blockchain without the need for mechanisms such as wrapping, which is currently required.
This mechanism will be streamlined with the launch of a cross-chain bridge, the specifics of which are yet to be detailed, whether it will take the form of a bridge application or an automated mechanism directly through new smart contract functions on the Tron blockchain.
Additionally, in the first phase, Tron DAO will also integrate with several layer 2 blockchains of Bitcoin, such as Ordinals.
The aim is to not only make Bitcoin available in the Tron ecosystem but also vice versa, allowing Tron token ecosystems to be transacted within the Bitcoin ecosystem with the assistance of various Bitcoin layer 2 blockchains.
The second phase of this integration launch focuses on strengthening cooperation between Tron and the layer 2 blockchains of the Bitcoin ecosystem.
It is likely that in this phase, more Bitcoin layer 2 blockchains will accept Tron token ecosystems, significantly increasing transaction volume within the Tron ecosystem.
One of the partners to be pursued is Blockchain Stacks, given that currently, the majority of ecosystems driving high transaction volumes in the Bitcoin ecosystem come from Blockchain Stacks, primarily operating in the Decentralised Finance (DeFi) sector.
The final step is the launch of Tron Blockchain’s own layer 2 blockchain for integration between the Tron blockchain, Bitcoin, and Tron’s flagship blockchain, BitTorrent or BTTC.
BitTorrent remains a significant asset to the Tron blockchain, as with the launch of a blockchain that can connect it to other blockchains, there is renewed hope within the community that the Tron ecosystem can flourish once again.
Therefore, with integration with Bitcoin, there is the potential for a significant increase in transaction volume, especially considering the current drastic growth in the Bitcoin ecosystem.
Bitcoin’s DeFi Ecosystem Continues to Grow
Regarding Bitcoin itself, data provided by DeFillama indicates a significant increase in transaction volume. This increase is particularly evident in the DeFi sector, where Total Value Locked (TVL), representing the total amount of funds locked in Bitcoin DeFi ecosystem applications, has shown a significant increase in recent days.
Currently, TVL in the Bitcoin DeFi ecosystem has surged from around $300 million to over $1.9 billion.
While the majority of this volume is temporary from investors using applications of new projects hoping to earn points for airdrops with their activities, it is still indicative that the Bitcoin ecosystem continues to attract significant investor attention.
Currently, most of these new applications are built on the Blockchain Stacks, which complements Bitcoin as a blockchain for launching smart contracts and decentralised applications.
The relationship between Blockchain Stacks and Bitcoin constitutes a layer one and layer two relationship distinct from other blockchain relationships, such as Ethereum with Arbitrum.
This is because Bitcoin cannot serve as a platform for launching applications but only as a data transaction storage, hence Stacks provides this launching feature complementing Bitcoin, ensuring both are utilised effectively.
In contrast, typically, like Ethereum and Arbitrum, both can serve as platforms for launching applications and data transaction storage, so the cooperation between the two networks does not fully maximise their capabilities.
Therefore, it is crucial for Tron to embrace existing layer 2 blockchains in the Bitcoin ecosystem so that overall adoption can significantly increase after this integration, driving TRX prices to rise higher than they are currently.
