The Ethereum page of Bitcoin Layers is under development.
Bitcoin Layers' focuses its efforts on reviewing protocols that claim to be a bitcoin layer and BTC wrappers that live on alternative chains. Alternative network provide a snapshot into the network architecture, but largely focus on review related to BTC wrappers on the network. If the network is an Ethereum L2, we recommend heading to L2Beat for a deeper dive into the architecture.
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Ethereum
Overview
Status
Mainnet
Type
Alt. Layer 1
Fee Token
ETH
BTC Supply
₿0
Ethereum is an alternative blockchain that supports a number of wrapped BTC tokens. Ethereum is home to the EVM execution environment which supports more expressive smart contracts.
CUSTODY
DATA AVAILABILITY
OPERATORS
FINALITY ASSURANCE
Trust Assumption Review
BTC Custody
Very High
🛑
BitGo wBTC
BTC backing this asset is managed by centralized parties
wBTC is backed by a centralized consortium of three companies. These entities are responsible for custodying BTC that backs wBTC on its various networks. Users trust these entities to not collude and steal the funds backing wBTC.
Data Availability
Alternative PoS Network
⚠️
Data is stored and made available by Ethereum full nodes
Data is published to, and made available by, full nodes participating in an alternative consensus network. Anyone can run a node and verify the current state of the network
Network Operators
Alternative PoS Network
⚠️
Ethereum is operated by an alternative validator set
Blocks are produced and proposed by an alternative proof-of-stake network.
Finality Guarantees
Alternative PoS Network
⚠️
Finality on Ethereum is guaranteed by an alternative consensus mechanism
Finality assurances are provided by an alternative consensus network. Users trust that once a transaction has been added to the chain it won't be reverted.
Bitcoin Security
Ethereum does not inherit any security from bitcoin
In its current state, the network does not inherit security from Bitcoin.
ETH token used to pay fees
Fees to network operators are paid in an alternative token.
No MEV introduced to bitcoin
Ethereum does not introduce MEV to bitcoin. Blocks in Ethereum are primarily auctioned off to builders who construct blocks on behalf of a proposer in a given slot. The majority of blocks in Ethereum are built by 2-3 builders.
Ethereum does not contribute to the security budget
In its current state, the network does not inherit security from Bitcoin.
Technology
Ethereum Virtual Machine
The network uses an EVM-compatible virtual machine. The Ethereum Virtual Machine is software responsible for smart contract execution for a number of blockchains, namely the Ethereum Network. It uses Solidity/Vyper as its code and is the dominant environment for smart contract execution in the cryptocurrency ecosystem.
Use Cases
Onchain applications
Onchain applications are supported. Onchain applications including borrowing and lending protocols, onchain exchanges (commonly referred to as decentralized exchanges), and more. These applications are supported with more expressive smart contract environments.