What is BSquared Network (B2)?

What Is BSquared Network (B2)?

BSquared Network, often referred to as B², is a Bitcoin Layer 2 solution designed to expand the functionality of the Bitcoin network beyond simple payments. It operates as a zero-knowledge proof verification commitment (ZPVC) rollup that anchors data and proofs to Bitcoin’s blockchain for security and settlement. By integrating zero-knowledge proofs (ZKPs) with Bitcoin’s base layer, BSquared Network aims to combine high-throughput, low-cost transactions with the security of Bitcoin’s proof-of-work consensus.

The network supports both Bitcoin and Ethereum-style addresses, allowing users and developers from different ecosystems to participate without the need for complex onboarding. Its design prioritizes compatibility with the Ethereum Virtual Machine (EVM), enabling developers to migrate or deploy decentralized applications (dApps) with minimal changes. This approach also provides users with familiar tooling and interfaces while leveraging Bitcoin for settlement.

BSquared Network’s vision is to make Bitcoin a more versatile platform, enabling use cases such as decentralized finance (DeFi), non-fungible tokens (NFTs), and AI-driven applications. The network’s mission extends to building an ecosystem where Bitcoin can serve as a primary medium of exchange within diverse blockchain-based activities, including integration with artificial intelligence systems.

How BSquared Network Works

BSquared Network’s architecture consists of two main components: the Rollup Layer and the Data Availability (DA) Layer.

The Rollup Layer aggregates transactions off-chain and generates cryptographic proofs of their validity using zero-knowledge technology. These proofs, along with a summary of the state changes, are submitted to the DA Layer. This method reduces transaction costs and improves scalability without compromising security.

The DA Layer stores transaction data and proof information in a decentralized storage network. Storage nodes run verification processes to ensure data integrity, and successful verifications are rewarded. The DA Layer also interacts with Bitcoin via specialized components:

• Bitcoin Committer writes rollup data and zk proof commitments to Bitcoin’s blockchain using Taproot inscriptions.

• Bitcoin Indexer tracks Bitcoin transactions and updates state data within the zkEVM.

• Validator Set Module maintains validator signatures directly on Bitcoin’s Layer 1.

BSquared Network also incorporates sequencer selection through a delegated proof-of-stake-like (DPoS) system, where token holders stake to elect block producers. By combining EVM compatibility with Bitcoin’s final settlement, the network allows developers to deploy Ethereum-style smart contracts while anchoring security to Bitcoin.

What Is B2 Token?

B2 is the native utility token of the BSquared Network, with a fixed total supply of 210 million tokens. It plays a central role in network operations, governance, and incentive distribution across the BSquared Network ecosystem.

The token’s allocation is designed to balance ecosystem growth, network security, and long-term development. Key allocations include 10% for investors, 10% for the team and advisors, 20% for staking rewards, 24% for the ecosystem reserve, and various incentives for community events, liquidity provision, and public distribution. Release schedules vary by category, with most allocations subject to cliff periods and gradual monthly releases to promote sustainable token circulation.

B2 serves multiple functions within the network. Current uses include paying transaction fees on the BSquared Network Hub, staking to secure the network, participating in liquidity incentives, and accessing fee discounts on the BSquared Network Rollup. Holders can also take part in governance by voting on protocol proposals. Planned future uses include sequencer staking and supporting staking activities across other rollups within the BSquared Network Hub.

Should You Invest in BSquared Network?

Investors considering BSquared Network should evaluate factors such as its technical approach, use of Bitcoin for settlement, EVM compatibility, and integration with emerging AI-driven use cases. Like all blockchain projects, potential investors should conduct independent research and assess risks, including market volatility and technology adoption rates.

Conclusion

BSquared Network presents a hybrid approach to blockchain scalability by combining EVM-compatible smart contract execution with Bitcoin’s settlement layer through zero-knowledge proofs. Its dual-layer architecture and native B2 token create a framework for decentralized applications, storage, and AI integration while retaining Bitcoin’s security model. For those following developments in Bitcoin Layer 2 solutions, B² offers a technically distinct model that blends proven blockchain features with new scalability and interoperability tools.