Nansen Expands to Bitcoin Layer 2, Will Provide Analytics for Bitlayer

As a seasoned analyst with years of experience in the dynamic world of blockchain and cryptocurrency, I see this collaboration between Nansen and Bitlayer as an exciting step forward for both parties and the broader ecosystem. Having witnessed the growth and evolution of Bitcoin and Ethereum, it’s intriguing to see how they are now intertwining through projects like Bitlayer.

As a data analyst, I’m excited to share that our company, Nansen, has decided to extend our services. We are now partnering with the Bitcoin layer-2 solution, Bitlayer, marking our foray into this particular ecosystem for the very first time.

Nansen, a tool that provides real-time visibility into blockchain networks, aspires to facilitate smarter decision-making within Bitcoin’s layer 2 systems through the use of the valuable insights its data and analytics offer, as suggested in an email announcement on Monday.

Bitlayer, a company that secured $11 million in investment headed by Franklin Templeton in July, operates on the basis of the BitVM computing model. This model seeks to enable the execution of Ethereum-like smart contracts on the Bitcoin network.

On networks such as Ethereum, the inclusion of smart contract functionality – a fundamental component that has been less prevalent on Bitcoin historically – enables the platform to foster advancements in areas like Decentralized Finance (DeFi) and Decentralized Applications (dApps).

To manage the high transaction volume, BitVM needs an additional supporting network built on top of Bitcoin. This secondary network will leverage the primary network’s robust security features.

Approximately 60% of the worth in the digital asset market is attributed to Bitcoin, making it significantly larger than all other networks combined. This implies that if Ethereum-like decentralized projects could be implemented on Bitcoin, they might release liquidity and value that no other existing ecosystem can currently rival.

Since the launch of Bitlayer’s mainnet in April, approximately 280 projects have been deployed on it, cumulatively worth close to $300 million as stated in today’s announcement.