Research Report | In-Depth Overview of B² Network & Market Valuation of $B2

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远山洞见2025/06/03 03:39

By:远山洞见

I. Project Overview

B² Network is a modular Layer 2 solution built on the Bitcoin mainnet, designed to bring Turing-complete smart contract capabilities to the BTC ecosystem. By leveraging a zkEVM + ZK-Rollup architecture, B² Network reduces transaction costs by 50x and boosts speed by 300x, offering Bitcoin users a faster, cheaper, and fully programmable on-chain experience. As of now, B² Network has processed over 142 million transactions, onboarded 15.46 million+ users and 10.8 million+ addresses, and reached a TVL of $678 million, rapidly emerging as a foundational infrastructure within the Bitcoin ecosystem.

The architecture consists of two layers: the Rollup Execution Layer and the Data Availability (DA) Layer. The Rollup layer uses zkEVM to handle smart contract execution and state commitments. Meanwhile, the DA layer utilizes Taproot scripts to anchor ZK proofs on Bitcoin, and a BitVM-based challenge mechanism ensures verifiability and transparency of state, achieving trustless security. Only 6 Bitcoin mainnet transactions per hour are needed to sync Rollup state and proof paths—keeping operational costs low.

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For cross-chain asset interoperability, B² has collaborated with Polyhedra to create a zkBridge tailored for BTC. Users deposit BTC into a multisig address; a zkOracle generates a ZK proof which is submitted to B², triggering asset minting. Withdrawals go through multi-stage proposal validation via the B² Hub, with finality achieved on Bitcoin through BitVM-based challenger games—forming a trustless, verifiable BTC cross-chain loop.

Users can access B² Network via MetaMask, Unisat, OKX Wallet, Xverse, etc., supporting both BTC (bc1p) and EVM (0x) addresses. B² Network has built a comprehensive token economy centered on $BSQ, including sequencer staking, miner incentives, liquidity rewards, storage node profits, Hub fees, governance, and gas discounts. As a smart contract platform truly geared toward developers and users, B² Network is unlocking a second wave of prosperity for the Bitcoin ecosystem.

II. Key Highlights

1. High-Performance Scaling on Bitcoin: 300x TPS & 50x Cost Reduction Built on zkEVM-powered ZK-Rollups, B² processes user transactions off-chain and submits zero-knowledge proofs to Bitcoin mainnet, requiring only 6 transactions per hour. This significantly lightens the load on Bitcoin Layer 1. The network has already handled 142M+ transactions, with a TVL of $678M and 10.8M+ active addresses, proving the viability of a fast, secure, and scalable BTC Layer 2 path.

2. Turing-Complete Smart Contracts – Unlocking Full Application Potential Bitcoin natively lacks support for complex contract logic, limiting its ability to host DeFi, NFT, and broader Web3 use cases. B² introduces full EVM compatibility, enabling users to deploy contracts using MetaMask, Unisat, Xverse, and integrate with BTC assets—revitalizing trillions of dollars in dormant BTC capital.

3. Modular Dual-Layer Design + Taproot Anchoring for Verifiable Security The Rollup layer handles contract computation, while the DA layer anchors proof and state to Bitcoin via Taproot. Tapscript-based state records and the BitVM challenger mechanism allow any participant to verify and challenge incorrect states, ensuring finality, transparency, and trustless validation.

4. Bi-Directional Asset Bridge Between BTC & EVM Ecosystems Together with Polyhedra, B² has built zkBridge to enable the transfer of BTC/BRC20, ETH, and other assets to B². BTC is held by an MPC+TSS multisig setup; zkOracles generate ZK Proofs, enabling mirrored assets on B². Withdrawals are governed by validator proposals and challenger verification on BitVM—ensuring auditability, error correction, and decentralized trust.

III. Market Outlook

$B2, the native token of B² Network, plays a vital role in scaling smart contracts and enabling cross-chain infrastructure on Bitcoin. Leveraging its zkRollup foundation, BitVM validation, and native cross-chain bridge, B² unlocks DeFi, NFTs, derivatives, and other high-potential use cases on BTC.

Currently, $B2 trades at $0.4826 with a circulating market cap of ~$20.07M, still in the early-stage valuation range for BTC Layer 2 protocols. Compared with Stacks (STX) and Merlin Chain (MERL), B² exhibits superior modularity, state verifiability, and challenge mechanics—offering strong upside potential if BTC ecosystem momentum and capital inflows continue.

IV. Tokenomics

Total Supply: 210,000,000 $B2

Allocation Breakdown:

Staking Incentives (20%): Rewards for BTC staking and node operation; linearly released over 96 months.
Ecosystem Reserve (24%): Supports future DeFi, NFT, and bridge expansions; unlocks after 6 months and releases over 47 months.
BTC Scaling Incentives (11%): Rewards for Rollup verification, BitVM challenges, DA submissions; unlocks after 6 months, releasing over 34 months.
Public Distribution (12%): For liquidity, partnerships, and user rewards; released flexibly based on operational needs.
Ecosystem Incentives (10.5%): Includes early supporters (BUZZ I - 5.5%, released over 4 months) and growth campaigns (BUZZ II - 5%, fully unlocked at TGE).
Initial Liquidity (2%): For CEX/DEX listings, fully released at TGE.
Team & Advisors (10%): Locked for 12 months, then released linearly over 36 months.
Investors (10%): Seed/private rounds; 12-month lockup followed by 25-month linear release.

Core Utilities:

Paying DA layer gas fees on B² Hub
Staking for validator/validator delegation rewards
Incentives for Rollup mainnet launch (TVL mining)
Ecosystem liquidity rewards
Rollup layer gas discounts
Governance (protocol upgrades, parameter changes, etc.)

V. Team & Fundraising

Team Overview: Key team members include Chief Ecosystem Officer Arwen, Head of Operations Desmond, BD Lead Phoenix, and Ecosystem Lead Nonoo. The team demonstrates strong execution and coordination, focused on making B² a performant, secure, and developer-friendly Layer 2 for Bitcoin.

Fundraising History:

Seed Round – Jan 25, 2024 Amount undisclosed Backers: HashKey Capital, OKX Ventures, Waterdrip Capital, ABCDE Capital, IDG Capital, KuCoin Labs, Antalpha Ventures, OGs Fund, etc.
Strategic Round – Oct 21, 2024 Amount undisclosed Backers: Spartan Group, Animoca Brands, Alliance DAO, P2 Ventures, Cypher Capital, Skyland Ventures, FutureMoney, Candaq Fintech Group, TPC Ventures, Maxx Capital, etc.

VI. Risk Factors

1. Complexity from Bitcoin Mainnet Coupling B²’s DA layer relies on Bitcoin for anchoring state and data. Despite cost optimization through Taproot, risks such as network congestion, fee volatility, or Bitcoin protocol changes may impact Rollup availability or security guarantees.

2. High Learning Curve for BTC Users & Market Perception Unlike ecosystems like Ethereum or Solana with mature developer communities, many BTC users lack familiarity with concepts like smart contracts or dApps. If B² fails to build a robust application layer and dev base quickly, it may face growth and TVL bottlenecks.

VII. Official Links

Website: https://www.bsquared.network/
Twitter: https://x.com/BsquaredNetwork
Telegram: https://t.me/bsquared_chat

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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