Competitive Matrix

Market Potential

Velocity is the first-to-market as a mass adoption-focused Bitcoin Layer-2 with EVM-compatibility. Other Bitcoin-based Layer-2 attempts have been largely experimental or theoretical.

Lightning Network is by far the largest and most adopted Bitcoin Layer-2 with a focus on payments. However, compared to Velocity, it does not provide EVM-compatibility to scale native developer community.

The closest comparable example is Polygon, which became the most adopted Layer-2 solution on Ethereum as it focused on retail applications and attracting new developers.

Polygon captured around 4% of Ethereum’s value, equaling nearly $9 billion. For Velocity, an equivalent capture for the Bitcoin’s leading retail-focused Layer-2 would result in $21 billion of created value.

Polygon vastly improved the scalability of Ethereum, while Velocity births the scalability of Bitcoin.

Velocity tackles two of the biggest problems that have prevented other Bitcoin scaling solutions to reach adoption.

1. No EVM-compatibility = no smart contracts in solidity

2. Lack of retail user participation and interest

Velocity solves both of these shortcomings across technological and commercial domains.

Solidity Developer Funnel

Vast majority of blockchain developers use solidity, which is usually their only blockchain-focused programming language. Lightning Network - the most notable Bitcoin Layer-2 - does not use solidity. Meanwhile, Ethereum with the biggest blockchain developer community has consolidated EVM-compatibility as the industry standard.

Velocity is EVM-compatible and uses solidity smart contracts, allowing for a seamless transition from other EVM networks with 100,000+ developer base. This creates two main benefits: seamless growth of our developer base and tapping into existing infrastructure built on other EVM networks (for example, quickly forking and deploying dApps).

Retail User Funnel

Acquiring network users has challenged other Layer-2 attempts, While some were purely development focused and experimental, others could not compete against the momentum of Ethereum. Velocity develops independent experiences for retail users to enter and transact on the network.

For example, Velocity App is the first retail-friendly app to buy, hold and access Bitcoin and its infrastructure, enabled by the Velocity Layer-2. It allows users to scan Fingerprint or Face ID to start transacting, without the need to understand blockchain.

Velocity incorporates into proven web3 user onboarding techniques. For example, owing to the success of Unstoppable Domains (a billon dollar web3 domains ocmpany) Velocity attracts users by enabling domains on the Bitcoin network for the first time.

Our Layer-2 makes it affordable and fast for masses to adopt BTC as payments, and even store their wealth in a variety of assets, on the Bitcoin blockchain.