We recently compiled a list of Bitcoin Layer 2s, but how do they differ under the hood?
In this thread, we will dive deeper into how we classify these Layer 2s, and walk through Bitcoin's scalability journey to highlight how they aim to leverage Bitcoin as a base layer.
Bitcoin Layer 2s Classification
DWF Labs Research1 min read

DWF Labs is a market-tested investor, ecosystem facilitator, and market maker strengthening digital asset infrastructure at scale for the markets of tomorrow. It originally began as a proprietary high-frequency trading firm in 2018, and relaunched in 2022 as a client-facing business. Today DWF Labs operates across four core lines: liquidity provision and market making, investment and incubation, ecosystem development, and OTC and structured markets. The firm is active on more than 80 centralized and decentralized exchanges, supports over 20% of CoinMarketCap's Top 100 projects and 35% of its Top 1,000, and has worked with more than 1,000 blockchain companies across Layer 1/Layer 2 networks, DeFi, gaming, AI, payments, and tokenization.