Overview

The Velocity Layer-2 is a novel blockchain network designed as a sidechain to the Bitcoin network. It operates by issuing its native token, VLCT, on the Bitcoin network using the ORC-20 standard. The sidechain enhances scalability and enables faster transactions while leveraging the robust security of the Bitcoin network.

Why Velocity?

• Scalability

One of the primary advantages of Velocity is its ability to address the scalability limitations of the Bitcoin network. By operating as a sidechain, Velocity provides an additional layer that can handle a higher volume of transactions and process them more quickly. This scalability enhancement allows for improved transaction throughput and reduces congestion on the main Bitcoin network.

• Faster Transactions

Velocity significantly improves transaction speed compared to the Bitcoin network. By utilizing a modified Proof-of-Stake consensus mechanism and maintaining a separate set of validators, Velocity achieves faster transaction finality. Users can enjoy quicker confirmation times, enabling more efficient and responsive decentralized applications on the sidechain.

• Cost Efficiency

With the Velocity sidechain, users can benefit from reduced transaction fees compared to the Bitcoin network. By offloading a significant portion of transactions to the sidechain, which operates with its native token, VLCT, users can enjoy cost-effective transactions without the high fees associated with on-chain Bitcoin transactions.

• Security through Bitcoin Network

The Velocity sidechain leverages the robust security and immutability of the Bitcoin network. By recording the merkle-tree root of the sidechain's state on the Bitcoin network as proof, Velocity ensures the integrity and trustlessness of the sidechain. This anchoring mechanism enhances security by benefiting from the decentralized mining power and consensus of the Bitcoin network.

• Interoperability with Bitcoin Network

Velocity provides seamless interoperability with the Bitcoin network through a two-way peg mechanism. Users can easily move their VLCT tokens between the Velocity sidechain and the Bitcoin network, allowing for flexible asset transfers and utilization across both networks. This interoperability opens up opportunities for innovative applications and financial interactions.

• Ecosystem Development

Velocity is EVM-compatible - it has Smart Contract, DApp & toolset compatibility with other Ethereum-based blockchains like Ethereum, Ethereum Classic, Binance Smart Chain, and others. The Velocity sidechain fosters the growth of its own ecosystem, attracting developers, businesses, and users who seek a scalable solution with lower transaction costs. This ecosystem expansion contributes to the overall growth and adoption of blockchain technology, particularly in areas where the limitations of the Bitcoin network have been a hindrance.