Bitlayer co-founder Charlie Hu recently sat down at Bitcoin 2025 to discuss his vision for the future of Bitcoin and decentralized finance. The leading Bitcoin Layer 2 solution, Bitlayer aims to unlock the possibilities of Bitcoin within Defi through innovative scaling solutions and bridges.
Discover Bitcoin and early interest
Hu’s trip to Bitcoin began in 2013 when he bought his first Bitcoin in Amsterdam. Initially fascinated by Bitcoin’s mining process and work proof system, Hu quickly gained interest in the broader blockchain ecosystem.
His early experience with Bitcoin Meetups ultimately provided the foundation that led him deeper into blockchain technology.
From Ethereum to Polka Dot
In 2015, Hu shifted his focus to Ethereum, becoming deeply involved in smart contracts and actively involved in the Ethereum community. This phase involved close interactions with important figures like Gavin Wood, former CTO at Ethereum.
Hu later became an important contributor to Polkadot, significantly expanding its presence and ecosystem in Asia. His role at Ethereum and Polkadot taught him invaluable lessons about the importance of programmaticity and innovation in blockchain technology.
Why Bitlayer? Fill the defi gap
Observing the growing ecosystem of Bitcoin around 2023, including the rise of ordinances and NFTs, Charlie recognized a significant gap. Bitcoin lacked the robust fault features available on Ethereum and other platforms.
This observation prompted him to co-founded Bitlayer with the goal of integrating Bitcoin’s security and liquidity with a strong mandatory function.
Bitlayer focuses on creating a scalable Layer 2 environment for Bitcoin, specifically addressing the Bitcoin limits of defi. The key technology driving this initiative is the Bitcoin Virtual Machine (BITVM) Bridge, which takes the largest trusted approach.
Unlike traditional multi-signature bridges, Bitlayer’s Bridge uses a cryptographic task-response system, so only one honest participant is required to protect your network.
Securing strategic investments
In 2024, Bitlayer secured a large sum of $25 million from well-known investors, including Franklin Templeton and PolyChain Capital.
These investments highlighted an institutional perception of Bitcoin’s growing role in Defi and a test of Bitlayer’s innovative approach.
Franklin Templeton’s involvement was particularly notable due to his prominent role in the asset management industry and his interest in expanding crypto utilities.
Cooperation with Bitcoin Miner
An important aspect of Bitlayer’s strategy is collaboration with major Bitcoin mining pools such as Antpool, F2pool and Spiderpool. These partnerships are designed to facilitate the priority processing of Bitlayer’s unique transaction types, increasing transaction speed and reliability.
Minors may benefit from earning additional transaction fee revenue. This is an important consideration as the bitcoin block decreases over time.
Address criticism and concerns
Critics raised concerns that prioritizing transactions could potentially put the disadvantages of regular Bitcoin users at a disadvantage. Hu counters this by highlighting Bitlayer’s commitment to maintaining a fair market environment.
Transaction fees determine priority and maintain fair access for all participants. The overarching goal is to create efficient and secure transactions without compromising the decentralized spirit of Bitcoin.
Bitcoin defi’s future vision
Charlie envisions a multi-chain future where Bitcoin integrates seamlessly with ecosystems such as Ethereum and Solana to enhance liquidity and utilities across decentralized applications.
Bitlayer’s technology is intended to enable sophisticated Defi applications in Bitcoin Layer 2, including decentralized exchanges, lending platforms, and high frequency trading systems.
In the future, Bitlayer will launch several important updates, including governance tokens, financial products from key institutions, and V2 upgrades that promise higher performance and scalability.
Conclusion
Bitlayer represents an ambitious effort to revolutionize how Bitcoin interacts with Defi.
With robust financial support, strategic mining pool partnerships and groundbreaking layer 2 solutions, Bitlayer has become a pivotal role in the continued evolution of Bitcoin, and Bitcoin is not only a valuable digital store, but also a versatile and powerful asset within the broader financial landscape.
