Marathon Digital, a major American company focused on cryptocurrency mining, has unveiled a new Layer 2 (L2) network on Bitcoin. The network, known as Anduro, aims to accelerate the development and adoption of Bitcoin (BTC) by enabling the creation of multiple sidechains.
The platform is designed as an application layer and can enable multiple sidechains. This allows innovation to be driven within the Bitcoin ecosystem and aims to become the most reliable and L2 for developers. The L2 network is ultimately intended to improve the scalability and usability of the Bitcoin network. This will ultimately (hopefully) lead to lower transaction costs, among other things.
One of the advantages of Anduro is the so-called “merge mining”. This allows miners like Marathon to earn income from transactions on the sidechains while continuing to mine Bitcoin.
Will Bitcoin sidechains soon be a reality?
Although Marathon Digital created the Anduro project, the intention is for the community to determine its future. Anduro will be governed by a diverse consortium of Bitcoin-focused entities known as the Collective. This will eventually be phased out in favor of trusted alternatives.
The company is currently working on the first two sidechains called Alys and Coordinate. Coordinate needs to reduce costs for the Ordinals community. In contrast, Alys’ goal is to realize an Ethereum (ETH) compatible chain for the tokenization of institutional assets.
Is the crypto market about to explode?
The crypto market may be on the cusp of significant moves as Bitcoin recently broke through and beyond several resistance levels All-time high approaches around $69,000. Analysts at World Bank JPMorgan Chase have highlighted three key factors that could have a positive impact on the market in the coming months.
First, the Ethereum network upgrade Dencun will be examined. This upgrade includes improvements such as Proto-Dank sharding and optimized data storage, increasing the accessibility and affordability of the network.
In addition, the Bitcoin halving is approaching, which reduces the supply of new coins and has led to significant price increases in the past. Finally, the potential approval of an Ethereum Spot Exchange Traded Fund (ETF) could trigger a significant influx of investments. While the outcome of these developments remains uncertain, investors and analysts are keeping a close eye on the market.