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Conflux Network, a China-based blockchain organization, has recently unveiled plans for a groundbreaking EVM-compatible Bitcoin Layer 2 (BTC L2) solution. This announcement propelled its native token Conflux (CFX) to gain over 8%. Earlier, the CFX price was in the red before the latest update came in.
Overview of Conflux’s Bitcoin L2 Solution
Conflux’s Bitcoin L2 solution would witness BTC being used as the native currency for gas fees. In addition, it’ll see seamless bridging of various asset classes from Bitcoin and effortless asset transfers to the Bitcoin chain. In addition, Bitcoin’s store-of-value properties will be integrated into Conflux’s Proof-of-Stake (PoS) consensus protocol, where BTC staking contributes to network security and governance.
The security framework incorporates Verifiable Secret Sharing (VSS)-based key sharing. This prevents single points of failure and distributes BTC asset management responsibilities across over 300 nodes. Whilst, the PoS consensus protocol not only records the latest ledger state onto the Bitcoin network but also acts as a reliable Bitcoin Oracle since it offers extensive chain-related metadata through internal contracts. This enables on-chain contracts to access Bitcoin blockchain events efficiently.
The Conflux Network noted that they have scheduled the Testnet launch in February-March 2024 and Mainnet launch in May 2024. With this move, Conflux aims to provide developers with enhanced opportunities for building decentralized applications that interact seamlessly across different blockchains. The development seems quite promising, hence, the CFX price shot up significantly thereafter.
This paradigm shift not only expands Bitcoin’s utility but also fosters greater innovation in decentralized finance (DeFi) and blockchain-based applications. Furthermore, the merger of Bitcoin’s strength with Conflux’s advanced technology stack creates a unique proposition for users. It’ll enable active participation in network security and governance through staking mechanisms while enjoying access to a broader range of decentralized applications.
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CFX Price Rallies 8% Today
After the aforementioned update chimed in, the CFX price gained over 8% and surged beyond the $0.22 mark. Earlier, it was trading at around $0.19, extending massive declines. At press time, the CFX crypto price soared by $6.23% to $0.2203 on Thursday, January 18.
Whilst, the crypto held a mark cap of $796.02 million, up by 6.18%. Furthermore, the trade volume surged by a whopping 70.52% to $118.45 million. In addition, it registered a new 1-month peak of $0.2293. Moreover, its 7-day returns exceed 15% while 1-month returns surpass 22%, which is quite impressive.
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