What is BSquared Network (B2)?

By CMC AI
01 October 2025 01:24AM (UTC+0)

TLDR

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

  1. Bitcoin scalability – Combines ZK-proofs and EVM compatibility to process transactions faster and cheaper while anchoring data to Bitcoin.

  2. Integrated mining/DeFi – Converts Bitcoin mining hash power into yield-generating strategies via its Mining Squared platform.

  3. AI infrastructure – Builds a blockchain-native framework for AI agents to transact and govern using BTC-backed assets.

Deep Dive

1. Purpose & Value Proposition

B² addresses Bitcoin’s limitations in programmability and liquidity by creating a modular ecosystem where Bitcoin becomes productive capital. Its infrastructure allows developers to deploy EVM-compatible dApps (like lending, swaps, and yield strategies) while settling proofs on Bitcoin via Taproot inscriptions. This bridges Bitcoin’s $2.36T dormant value into DeFi, with over $615M in TVL and 10.8M addresses actively using its network (B² Network).

2. Technology & Architecture

B² uses a dual-layer system:
- B² Rollup: A ZK-secured execution layer for fast, low-cost transactions, compatible with Ethereum tools.
- B² Hub: A Bitcoin Layer 1.5 that batches rollup data and anchors it to Bitcoin via Taproot, ensuring decentralized security.
Key innovations include Proof of Signal (PoSg) for AI agent governance and modular sharding to support diverse applications (Technical Docs).

3. Ecosystem Fundamentals

  • Mining Squared: Lets miners earn yield on BTC by auto-converting hash power into staking, liquidity provisioning, or RWA strategies (5,000+ BTC deployed).
  • AI Signal: A decentralized network where AI agents execute transactions, pay fees, and govern via BTC-collateralized stablecoins (e.g., U2).
  • Cross-chain integration: Partners with chains like Nibiru and Arichain to extend Bitcoin liquidity into Cosmos and multi-VM ecosystems (Partnership Announcement).

Conclusion

BSquared Network reimagines Bitcoin as a foundation for decentralized finance and machine-driven economies, blending scalability, yield generation, and AI interoperability. As Bitcoin’s utility evolves, can B²’s infrastructure sustainably bridge legacy finance with autonomous agents?

CMC AI can make mistakes. Not financial advice.