CFX Price Increases 8% as Conflux Introduces EVM Compatible Bitcoin L2 Solution
Conflux Network, a China-based blockchain startup, recently announced plans for its groundbreaking EVM-compatible Bitcoin Layer 2 (BTC L2) solution. This announcement enabled native token Conflux (CFX) to gain over 8%. Previously CFX price was in the red before the latest update came.
Overview of Conflux’s Bitcoin L2 Solution
Conflux’s Bitcoin L2 solution will see Bitcoin used as the local currency for gas fees. In addition, a seamless bridge will be created between various asset classes from Bitcoin and will see effortless asset transfers to the Bitcoin chain. Additionally, Bitcoin’s store-of-value features will be integrated into Conflux’s Proof-of-Stake (PoS) consensus protocol, where BTC staking will contribute to network security and governance.
The security framework includes Verifiable Secret Sharing (VSS) based key sharing. This avoids single points of failure and distributes BTC asset management responsibilities across more than 300 nodes. The PoS consensus protocol not only records the latest ledger state on the Bitcoin network, but also acts as a reliable Bitcoin Oracle as it provides comprehensive metadata about the chain through internal contracts. This allows on-chain contracts to access Bitcoin blockchain events efficiently.
Conflux Network stated that they are planning the Testnet launch in February-March 2024 and the Mainnet launch in May 2024. With this move, Conflux aims to provide developers with enhanced opportunities to create decentralized applications that interact seamlessly across different blockchains. The development looks quite promising, so the CFX price has increased significantly from now on.
This paradigm shift not only expands the utility of Bitcoin but also spurs further innovation in decentralized finance (DeFi) and blockchain-based applications. Moreover, the power of Bitcoin combined with Conflux’s advanced technology stack creates a unique offering for users. It will enable active participation in network security and governance through staking mechanisms, while enjoying access to a wider range of decentralized applications.
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CFX Price Increased 8% Today
Following the above-mentioned update, CFX price increased by over 8%, breaking above the $0.22 level. It was previously trading around $0.19 and major declines were continuing. At the time of writing, the CFX crypto price rose 6.23% to $0.2203 on Thursday, January 18.
Meanwhile, the value of the cryptocurrency increased by 6.18% to $796.02 million. Additionally, trade volume increased by 70.52% to 118.45 million dollars. Additionally, it recorded a new 1-month high of $0.2293. Moreover, its 7-day return exceeds 15% and its 1-month return exceeds 22%, which is quite impressive.
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