Cardano as Bitcoin layer 2

[d5000]

Ultimately, Charles Hoskinson and the community will decide what to do with Cardano.

In reality, if somebody wants to use Cardano as a second layer, it would be difficult to prevent that (for Hoskinson or any Cardano community member) due to its expressive smart contract language. Threshold's tBTC is an example for a sidechain concept which has been adopted on several blockchains without "permission" from the "founders" of these blockchains.

Of course the Cardano community/team can decide what to do with their development funds (=premined coins they still own) however. And if they want to invest the funds in a model for a better sidechain, why not?

Note that it will be very likely possible to adapt this model to other blockchains, too. At least if it's open source (and I would highly recommend the Cardano folks to not even try to implement some closed-source or restricted-source solution).

That are my thoughts on the subject and why I can't find anything really negative about the announcement. I still haven't investigated the technical details of the BitcoinOS system well, however. Maybe it's a centralized system with some technobabble (like so many of those I have reviewed), and then of course the solution wouldn't mean really progress towards good Layer-2's.

[Abiky]

In reality, if somebody wants to use Cardano as a second layer, it would be difficult to prevent that (for Hoskinson or any Cardano community member) due to its expressive smart contract language. Threshold's tBTC is an example for a sidechain concept which has been adopted on several blockchains without "permission" from the "founders" of these blockchains.

Of course the Cardano community/team can decide what to do with their development funds (=premined coins they still own) however. And if they want to invest the funds in a model for a better sidechain, why not?

Note that it will be very likely possible to adapt this model to other blockchains, too. At least if it's open source (and I would highly recommend the Cardano folks to not even try to implement some closed-source or restricted-source solution).

That are my thoughts on the subject and why I can't find anything really negative about the announcement. I still haven't investigated the technical details of the BitcoinOS system well, however. Maybe it's a centralized system with some technobabble (like so many of those I have reviewed), and then of course the solution wouldn't mean really progress towards good Layer-2's.

Thank you for sharing your thoughts. I agree that Cardano's expressive smart contract capabilities make it flexible enough for second-layer solutions, even without direct involvement or permission from its core team or community. The tBTC example highlights how interoperability and decentralization can flourish organically across ecosystems, which is an exciting prospect for Cardano as well.

Regarding development funds, it does make sense for the Cardano team to invest strategically in fostering better sidechain models. Open-source development, as you mention, would indeed be the ideal path forward, ensuring adaptability and collaboration across blockchains while maintaining transparency and decentralization.

As for BitcoinOS, I share your cautious approach. Evaluating technical details thoroughly will be critical to determining whether this is genuinely a step forward or just another centralized construct with limited value. Let’s see how it evolves!

[SensitiveEyes]

Discounting the obvious possibility Cardano developers love the publicity layer 2 brought it to stand away from the crowd, people are discussing it because layer 2 propelled them back to the news. Cardano might market this as an important improvement but Bitcoin adopters will decide if they use an alt-coin layer 2 or not.

Cardano can't work as Bitcoin layer 2 and it isn't even needed to work in that way. The Bitcoin community can't trust an alt-coin to be Bitcoin layer 2 and that's a fact. Cardano might do something like that to market itself it more investors so it can gain new investors but that's not a good approach.

Bitcoin is working really well and it doesn't really need any type of layer 2 solutions and even if it does then most Bitcoin users won't be using those layer 2 solutions over segwit and that's also a fact. Lightning network is a good example of layer 2 solution for Bitcoin but it's still not adopted by the majority of Bitcoin community.

[Abiky]

Bitcoin is working really well and it doesn't really need any type of layer 2 solutions and even if it does then most Bitcoin users won't be using those layer 2 solutions over segwit and that's also a fact. Lightning network is a good example of layer 2 solution for Bitcoin but it's still not adopted by the majority of Bitcoin community.

If Bitcoin's blockchain is itself secure and functional, then why is a layer 2 scaling solution payment appears to be necessary?

In reality, Bitcoin is robust and works well on its own. There are some essential issues that need to be corrected. LN is a kind of Layer 2 (L2) scaling solution that focuses on problems like scalability and transaction speed quickly and effectively.

SegWit, or Segregated Witness, was a base layer improvement that helped reduce or remove block size limits in the chain, thus enhancing the efficiency.

LNs or Level 2 solutions, in other words, allow for bidirectional transaction abilities off-chain, which makes microtransactions faster and cheaper without overloading the primary BTC network.

The LN solution was gradually adopted, but more and more users are becoming aware of it and the necessary infrastructure. It always takes a little time for any new technology to grow.

[SensitiveEyes]

If Bitcoin handlers use Cardano layer 2 for every transaction they will propel it to the top of the desirable charts. LN technology has not become commonplace, Cardano will have to work on promotion or stay behind LN.

The LN solution was gradually adopted, but more and more users are becoming aware of it and the necessary infrastructure. It always takes a little time for any new technology to grow.

[Abiky]

If Bitcoin handlers use Cardano layer 2 for every transaction they will propel it to the top of the desirable charts. LN technology has not become commonplace, Cardano will have to work on promotion or stay behind LN.

Well, Cardano isn't that popular compared to ETH or Solana. So I doubt it will have a positive impact over Bitcoin's mainstream adoption. I'm afraid the Cardano L2 network will be as unpopular as the Lightning Network (LN). But I could be wrong. LN's biggest failure was the limited channel capacity and steep learning curve (terrible user experience). It's not as easy to use as on-chain Bitcoin.

If most people didn't move to the LN just to save money on TX fees, what makes you think they'll move to a Cardano L2 network powered by smart contracts? Not even pioneers like RootStock or Stacks have been able to succeed. It's best for Cardano to live on its own chain just to avoid complicating things. I'm sure Bitcoin will do fine without it.

[john_egbert]

If Bitcoin handlers use Cardano layer 2 for every transaction they will propel it to the top of the desirable charts. LN technology has not become commonplace, Cardano will have to work on promotion or stay behind LN.

Well, Cardano isn't that popular compared to ETH or Solana. So I doubt it will have a positive impact over Bitcoin's mainstream adoption. I'm afraid the Cardano L2 network will be as unpopular as the Lightning Network (LN). But I could be wrong. LN's biggest failure was the limited channel capacity and steep learning curve (terrible user experience). It's not as easy to use as on-chain Bitcoin.

If most people didn't move to the LN just to save money on TX fees, what makes you think they'll move to a Cardano L2 network powered by smart contracts? Not even pioneers like RootStock or Stacks have been able to succeed. It's best for Cardano to live on its own chain just to avoid complicating things. I'm sure Bitcoin will do fine without it.

BTC will surely be fine without any branch going out of it, however - it's all about alternatives to an alternative.

But I digress, it may be something worth looking it or it may end up as an experience that wouldn't even intrigue people up.

[Easteregg69]

I got this one is gonna save the math. As usecase for BTC.