How Layer 2 EVMs Are Making Bitcoin Scalable and Usable

Sam kamani

September 10, 2025

Bitcoin is ready for its next act

Bitcoin is the largest cryptocurrency by market cap—but also one of the least programmable. While Ethereum exploded with DeFi and smart contracts, Bitcoin has largely remained a passive store of value.

That’s about to change.

Willem Schroé and his team at Botanix Labs are building Spiderchain, a decentralized EVM-compatible Layer 2 protocol for Bitcoin. This means developers can now build smart contracts, DEXs, lending platforms, and more—on Bitcoin itself, not via wrapped tokens.

“We’re not trying to replace Bitcoin. We’re trying to unlock it.” — Willem Schroé

🕸️ What is Spiderchain?

Spiderchain is a Layer 2 protocol that anchors back to Bitcoin for security but runs Ethereum-style smart contracts. The goal is to make Bitcoin programmable while preserving decentralization and security.

Key features:

5-second block times
Gas fees paid in BTC (no need to wrap or convert)
Trust-minimized validator set
Bitcoin-native DeFi ecosystem

This removes one of the biggest pain points in Bitcoin development: you no longer need to wrap BTC into wBTC or rely on bridges to interact with DeFi.

⚙️ Why Bitcoin Needs Layer 2 Now

Despite its reputation as “digital gold,” Bitcoin faces several limitations:

Slow confirmation times
High transaction fees during congestion
Lack of native smart contract capability

Layer 2s like Spiderchain aim to fix these without compromising Bitcoin’s core principles. You get faster transactions, more complex use cases, and smart contracts—while still paying gas in BTC.

“Layer 1 should stay simple and secure. Layer 2 is where innovation happens.” — Willem

💸 Can you earn yield in Bitcoin?

Yes. And not through CeFi or wrapped assets.

Botanix enables a model where users can participate in Layer 2 node operations to earn Bitcoin-native yield. This makes Bitcoin not just a dormant store of value, but an active asset in the decentralized economy.

This opens the door to:

Lending and borrowing using BTC directly
Stablecoins built on Bitcoin
Native BTC staking and yield generation

🧠 Bitcoin as a financial operating system

The vision isn’t just about faster transactions. Willem is thinking bigger.

Botanix could help Bitcoin evolve into a global decentralized financial system, powering:

Peer-to-peer lending
On-chain insurance
Cross-border remittances
Non-custodial savings accounts

All built with Bitcoin at the core.

And with $1T+ in market cap, Bitcoin is uniquely positioned to act as the monetary base layer for DeFi—if the infrastructure is ready.

🔍 Challenging Assumptions

A few core beliefs were challenged in the episode:

Bitcoin is too slow → Not on Layer 2.
People won’t spend a deflationary asset → They will, if utility and yield are high.
BTC can’t support DeFi → It can, through smart Layer 2 designs like Spiderchain.

“The Bitcoin community has always focused on security. Now it’s time to build utility on top of that foundation.”

📣 Final thoughts & call to action

Whether you're a developer, researcher, or just curious about the next phase of crypto, this is the time to start building on Bitcoin.

Bitcoin doesn’t need to become Ethereum. But it can become more useful.

And that’s what Willem and the Botanix team are enabling—with a developer-friendly, decentralized Layer 2 that respects Bitcoin’s roots while expanding its future.