The startup designs and produces Bitcoin sidechains to enhance transaction scalability and privacy on the Bitcoin network. By enabling faster and more secure transactions, these sidechains address the limitations of Bitcoin's main chain, particularly during periods of high network congestion.
Funding
$3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Bitcoin's main chain can experience congestion and slower transaction times, especially during periods of high demand, limiting its scalability and broader adoption. Current sidechain implementations often rely on federated multisigs, introducing centralization and potential security vulnerabilities.
Solution
LayerTwo Labs develops Drivechains, a Bitcoin soft fork upgrade that enables the creation of more secure and scalable sidechains. These sidechains run parallel to the Bitcoin mainchain, secured by Bitcoin miners through blind merged mining, eliminating the need for federated multisigs. This approach allows for the seamless transfer of Bitcoin between the mainchain and sidechains, enabling users to access a wider range of blockchain applications without needing altcoins. Drivechains facilitate experimentation with new features and technologies without risking the security of the Bitcoin mainchain, while also providing miners with transaction fees from the sidechains.
Target Audience
The primary target audience includes Bitcoin users and developers seeking enhanced scalability, flexibility, and innovation on the Bitcoin network, as well as miners looking for additional revenue streams.
Features
- Hashrate escrow mechanism for secure two-way pegging between Bitcoin and sidechains
- Blind merged mining, allowing Bitcoin miners to secure sidechains and collect transaction fees
- Support for a wide variety of use cases, including smart contracts, privacy-focused transactions, and DeFi applications
- Compatibility with large-block sidechains (Thunder sidechains) for increased scalability
- Lightweight sidechains with compressed state represented by a single hash
- CUSF (Covenants Using Sha256 Factories) enforcer software to ensure compliance with BIP300 and BIP301 rules
- Drivechain Launcher, an Electron-based desktop application for managing and interacting with blockchain nodes