Blockstream, a Vancouver-based firm focused on infrastructure development for the Bitcoin network, foresees massive growth in the network's layer 2 technologies, thanks to upcoming updates such as Bitcoin Improvement Proposal (BIP) 118 and a new coding language for Bitcoin smart contracts called Simplicity. At the Consensus 2023 conference held last week in Austin, Texas, an engineer at the firm, Lisa Neigut, predicted this 'Cambrian explosion' for the development of layer 2 technologies.

Bitcoin already has abundant layer 2 networks, such as the popular Lightning Network for payments, Blockstream's Liquid sidechain and Fedimint, as well as Cashu. The recent developments in the network will further assist its layer 2 growth. BIP 118, also known as SIGHASH_ANYPREVOUT, will make it relatively easier for developers to come up with newer scripts and covenants for the network. Similarly, Simplicity, the coding language for smart contracts, will bolster the already high-performing blockchain network, making it more conducive for applications and use cases.

The Blockstream firm is helmed by the cypherpunk Adam Back, known for inventing Hashcash, a mining algorithm used later on in Bitcoin. It focuses on developing solutions for Bitcoin to make it easier, faster and more secure to use. Neigut's remarks at the conference portray the firm's future plans and prospective technologies in the Bitcoin ecosystem. With this 'explosion' of layer 2 technologies predicted to be seen in the near future, it's time to keep an eye on Bitcoin's development and the emerging solutions that come with it.



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