A Quick Overview of the Bitcoin Layer 2 Project Bitfinity, EVM-Compatible with Ethereum
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A Quick Overview of the Bitcoin Layer 2 Project Bitfinity, EVM-Compatible with Ethereum
Bitfinity is currently in the testnet phase and plans to launch its mainnet later this month or in early February.
Navigating Web3 tides with focused insightsAuthor: Zen, PANews
Recently, the Bitcoin Layer 2 project Bitfinity announced it has raised a total of $7 million in funding from investors including Polychain Capital, ParaFi Capital, Warburg Serres, Dokia Capital, and Draft Ventures. The funding was divided into two rounds: a seed round of approximately $1 million in 2021 and a growth round completed last June. Both rounds were token-based financings, with the second round valuing Bitfinity at $130 million.
Currently in testnet phase, Bitfinity plans to launch its mainnet later this month or in early February. According to Bitfinity co-founder Max Chamberlin, the timing of the funding announcement aims to generate excitement and attention ahead of the network's official mainnet launch. As an emerging Bitcoin Layer 2 solution, Bitfinity’s development is closely tied to EVM technology.
Built on the Internet Computer (IC), Bitfinity Network EVM creates an Ethereum-compatible blockchain using the Solidity programming language. Thanks to IC’s unique architecture and Chain Key technology, Bitfinity Network EVM achieves higher efficiency compared to traditional EVM implementations on other blockchains. Its on-chain storage capacity and processing speed are comparable to traditional web services, without requiring any gas fees. By being EVM-compatible, Bitfinity enables developers familiar with the Ethereum programming environment to build decentralized applications (dApps) that can interact with Bitcoin, unlocking numerous new applications and use cases for Bitcoin. With Bitfinity, developers can deploy Bitcoin, Ordinals, and BRC-20 smart contracts written in Solidity—boosting Bitcoin's utility, especially within DeFi, a domain long dominated by Ethereum.
The architecture of Bitfinity Network EVM consists of four key components:
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EVM API Canisters: These canisters, analogous to smart contract containers on the IC, serve as entry points for the system, receiving requests from Ethereum clients and IC agents. Once received, these requests are batched into a pending transaction pool;
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EVM Execution Canisters: After the EVM API batches incoming requests into the pending transaction pool, EVM execution canisters process these transactions, update the global EVM state, and accordingly update the Blockchain canisters;
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Blockchain Canisters: These contain the structure of Ethereum blocks and are stored in the IC’s stable memory canisters. Currently limited to 48GB per canister, the team plans to increase storage capacity up to 1TB, allowing InfinitySwap to store all its on-chain data within a single canister;
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Signature Verifier Canisters: These are used to verify signatures required for authenticating Ethereum transactions—a computationally intensive task executed within dedicated canister pools to prevent overloading the EVM API canisters.
By optimizing transaction throughput through signature verification and transaction batching, Bitfinity Network EVM operates faster than the Ethereum mainnet EVM. Although cryptographic and I/O operations incur high overhead, Bitfinity Network EVM runs entirely on-chain, with code and data executed in WebAssembly. As WebAssembly is a single-threaded execution environment, parallel computation is achieved via a multi-canister architecture—this is precisely what enables Bitfinity Network EVM to run efficiently and at high speed.
Furthermore, Bitfinity Network EVM has undergone extensive testing with high coverage of core modules. The Retest integration test suite ensures correctness of the JSON RPC interface and EVM execution. Bitfinity Network EVM leverages existing tools such as REVM, Retest, canister-sdk, and the IC’s stable storage libraries to fully utilize established Ethereum ecosystems.
Additionally, Bitfinity Network EVM plans to integrate Ethereum and other EVM-compatible chains by running lightweight clients on the IC. This would require modifications to the network protocol to interface with full nodes on other chains and synchronize entire blockchains. It will support connections between ICRC-1 tokens and ERC777/ERC20 tokens, including Bitcoin represented as an ICRC-1 token.
Regarding tokens, BITFINITY is the official governance token approved by the Bitfinity DAO and serves as the native token of Bitfinity EVM, with a total supply of one billion tokens and classified as an ERC-20 token. Its distribution is structured as follows:
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Community Treasury: 20%
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Governance DAO: 35%
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Long-term Incentives: 16%
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Seed Round: 5%
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Growth Round: 8%
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Growth and Liquidity Programs: 16%
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Grants: 3%
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Growth and Partnerships: 3%
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Locked Liquidity: 10%
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