The concept of an 'Ethereum killer' became a popular narrative during the 2020/21 blockchain boom, with several alternative blockchains like @solana, @Cardano_CF, and @Polkadot aiming to outpace @Ethereum. However, recent advancements in Bitcoin L2’s promise to make Bitcoin highly scalable, programmable and productive, which now raises the question of whether Bitcoin itself could become the ultimate 'Ethereum killer', also making other chains obsolete in the process. Bitcoin's role is elevating from being just a store of value and now has the very real potential to position itself as the definitive global settlement layer. Here, we explore whether Bitcoin can evolve to become the foundation for a unified blockchain economy and whether existing chains will need to adapt their functionality to settle on bitcoin in order to remain relevant.
Through recently introduced ZK-based mechanisms, projects like @citrea_xyz are enabling Bitcoin to support sophisticated applications like those previously limited to more programmable blockchains like Ethereum, while maintaining the unparalleled security inherent in the Bitcoin network. Other projects like @nubit_org are developing a Bitcoin-native data availability layer, aimed at reducing transaction costs and increasing throughput, while @GOATRollup utilizes a decentalized sequencer network that enables Bitcoin holders to share network ownership and earn a sustainable yield; as the network matures and adoption increases, the yield available to those who lend their Bitcoin to secure the network's sequencers will also grow, providing a powerful incentive for participation. Even OG projects like @StarkWareLtd are recognizing the transition in the collective meta, contributing by bringing scalability techniques akin to those used in Ethereum to Bitcoin. These kinds of developments give Bitcoin the capacity to serve as the foundational infrastructure for an interconnected blockchain economy that could at least match the functionality of existing alternatives and strengthen its adoption, which raises the question: will alternative blockchains that fail to adapt to this new reality ultimately become obsolete?
The concept of an 'Ethereum killer' served as the central narrative for the creation of several alternative L1’s, which aimed to outpace Ethereum by offering better scalability, lower transaction fees, and improved efficiency. These projects emerged in response to Ethereum's limitations, particularly during the DeFi and NFT booms that highlighted high gas fees and scalability bottlenecks. However, with the recent advancements in Bitcoin L2’s, the narrative is shifting: it is now possible that Bitcoin itself could emerge as the ultimate 'Ethereum killer', challenging not only Ethereum but the majority of other chains as well.
Bitcoin’s unmatched security - derived from its proof-of-work consensus mechanism - offers a level of trust and decentralization that is difficult for other blockchains to replicate. This security makes Bitcoin an attractive settlement and value layer for all blockchain activities, and as Bitcoin's programmability and scalability are improved through L2’s, economic activity may increasingly consolidate onto Bitcoin, reducing the need for multiple competing blockchains. These L2’s allow it to potentially absorb the use cases that were initially targeted by newer blockchain networks and, as these solutions mature, Bitcoin L2’s may begin to eclipse these alternative chains, rendering them redundant.
Bitcoin’s wide adoption and foundational strengths, combined with advanced functionalities, could very well make it the preferred choice for decentralized applications and financial activities. The blockchain ecosystem may thus consolidate around Bitcoin, reducing fragmentation and positioning it as the core settlement and execution layer for a wide variety of blockchain applications.
The path to a Bitcoin-centric blockchain economy is not without obstacles. Technological adaptation remains a challenge; integrating sophisticated technologies such as BitVM and zkVMs requires overcoming considerable technical hurdles and it’s essential to maintain a balance with Bitcoin’s core tenets of decentralization and security. Achieving this balance requires careful attention to economic incentives, ensuring that network participants are motivated to adopt and support expanded functionalities. But Bitcoin’s community has historically been very conservative, and this cultural resistance may pose a challenge to expanding Bitcoin's collectively recognized role beyond just value storage.
However, if successful, Bitcoin could consolidate blockchain activity, establishing itself as the de facto base layer for all digital value transactions. The future may see a more unified blockchain ecosystem with Bitcoin at its core, serving as both the settlement layer and the backbone of a new era of decentralized applications, effectively becoming the 'Ethereum killer' and much, much more.
