Layer 2 Labs has raised a $3 million seed round from angel investors to bring drivechains and other innovative technologies to Bitcoin.
Drivechains are a type of sidechain – a secondary blockchain that interacts with a primary blockchain and aims to offer a better user experience (UX). The company’s CEO and founder, Paul Sztorc, a well-known Bitcoin researcher and developer, has been working on drivechains since 2015.
According to Sztorc, the purpose of drivechains is to give Bitcoiners access to innovative features and products currently confined to altcoin networks. Examples would be Zcash’s zero-knowledge proofs, a way of proving something without revealing sensitive information, and Ethereum’s Augur, a prediction market where users bid on specific outcomes.
“We believe that drivechains have the potential to kill altcoins, increase bitcoin adoption and provide the catalyst for hyperbitcoinization,” said the company in a release provided to CoinDesk. (Hyperbitcoinization is the point where Bitcoin becomes the world’s dominant monetary system.)
Besides Sztorc, Layer 2 Labs’ founding team includes Bitcoin Core contributor CryptAxe and 8-year Kraken veteran Austin Alexander.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.