What is BSquared Network (B2)?

By CMC AI
09 September 2025 01:22AM (UTC+0)

TLDR

BSquared Network (B2) is a Bitcoin Layer 2 solution designed to expand Bitcoin’s utility beyond a store of value by enabling smart contracts, DeFi, and AI-driven economies while maintaining Bitcoin’s security.

  1. Infrastructure for Bitcoin scalability – Combines an EVM-compatible ZK-Rollup with a modular hub for data anchoring to Bitcoin.

  2. Yield-generating ecosystem – Integrates mining, DeFi, and AI agents to turn idle BTC into productive assets.

  3. AI-native economy – Builds infrastructure for autonomous AI agents to transact and govern using BTC-backed stablecoins.

Deep Dive

1. Purpose & Value Proposition

B2 aims to solve Bitcoin’s limitations in scalability and utility. It transforms BTC from a passive asset into a yield-generating, programmable currency for decentralized finance (DeFi) and AI economies. By anchoring transactions to Bitcoin via ZK-proofs and Taproot, B2 enables smart contracts and high-speed transactions while preserving Bitcoin’s security. Over $650M in bridged BTC and 100+ live dApps (B² Network) demonstrate its traction in making Bitcoin usable for lending, staking, and cross-chain strategies.

2. Technology & Architecture

B2 uses a two-layer architecture:
- B² Rollup: An Ethereum Virtual Machine (EVM)-compatible execution layer secured by zero-knowledge proofs (ZKPs), enabling fast, low-cost transactions.
- B² Hub: A Bitcoin Layer 1.5 that aggregates data and settles rollup batches on Bitcoin using Proof of Signal (PoSg), a consensus mechanism linking staking to real-world agent activity.

This hybrid model allows developers to deploy Ethereum-style dApps while leveraging Bitcoin’s security.

3. Ecosystem & Key Differentiators

B2 uniquely bridges Bitcoin mining, DeFi, and AI:
- Mining²: Converts hashpower into yield via auto-compounding strategies, serving 50,000+ miners and 7 EH/s of hashrate (B² Network).
- DSN-AI: A decentralized network where AI agents use BTC-backed stablecoins for microtransactions, targeting machine-driven economies.
- Cross-chain integration: Supports BTC liquidity flows into ecosystems like Cosmos and Solana via partnerships with Nibiru and Arichain.

Conclusion

BSquared Network reimagines Bitcoin as a dynamic financial and computational layer, merging modular infrastructure with AI-native economies. Its success hinges on bridging Bitcoin’s $2.36T dormant value with emerging use cases—can it become the default settlement layer for both humans and machines?

CMC AI can make mistakes. Not financial advice.