Bitcoin Economic Layer
Mezo: Revolutionizing Bitcoin with EVM-Compatible Layer 2 Solutions
Introduction
As the first crypto asset and the largest by market capitalization, Bitcoin remains one of the most influential assets on the entire liquid token market. However, despite its widespread use and recognition as a global, decentralized store-of-value, many have criticized Bitcoin’s scalability, programmability, and ability to attract developer interest—especially in wake of the Ethereum and smart contract platform movement.
Mezo, a Bitcoin Economic Layer with EVM-compatibility, aims to overcome these hurdles. This article examines the current state of Bitcoin, the innovative work being done by Mezo, and the potential future impact on the cryptocurrency ecosystem.
Overview of the Current Landscape
Bitcoin's dominance in the cryptocurrency market is undeniable. Today, there are over 100 million holders of BTC globally and its market capitalization is roughly three times that of the second largest crypto asset (ETH). Still, in all of its novelty and simplicity, Bitcoin is rigid. Unlike Ethereum and other smart contract platforms which are malleable, Bitcoin’s core design has historically limited its scalability and programmability.
Industry leaders like Thesis, a venture studio which incubated Mezo, are now seeking novel ways to enhance Bitcoin’s capabilities through Layer 2 solutions. These advancements are crucial for enabling more complex functions like smart contracts and decentralized applications (dApps) on the Bitcoin network.
Progress and Milestones
To date, Mezo has made impressive progress in its mission to revolutionize Bitcoin. The project integrates all of Thesis's consumer-facing Bitcoin products into a cohesive ecosystem on the Mezo platform. These projects work together to create a more usable Bitcoin economy, all powered by Mezo.
Mezo is possible thanks to some key upgrades to the Bitcoin mainnet that have enabled Bitcoin development. The most significant developments in recent years include:
Taproot Upgrade (Nov 2021): Enhanced data storage capabilities on Bitcoin blocks.
Ordinal Inscriptions (Jan 2023): Enabled a metadata layer for non-fungibility on individual satoshis.
BRC-20 Tokens (Mar 2023): Introduced a standardized protocol for deploy, mint, and transfer functionalities via JSON code.
These milestones highlight the growing potential for the Bitcoin network to serve as a hub for decentralized finance applications (DeFi) and non-fungible tokens (NFTs).
Traction
In recent months, Mezo has demonstrated early market dominance in the Bitcoin L2 ecosystem. Currently, the team ranks among the top Bitcoin L2s in terms of total-value-locked (TVL). We expect this growth to persist as the Mezo team begins to roll out its public testnet and attract developers to build applications atop Mezo.
Impact and Future Implications
Bitcoin’s base layer advancements have significant implications. Mezo opens up new opportunities for financial innovation by extending Bitcoin’s programmability, particularly in regions with high Bitcoin adoption such as Latin America, Africa, and Asia. The introduction of a Bitcoin DeFi ecosystem could scale quickly. We believe that this could catalyze the BTC DeFi market cap to range from about $50 billion to $400 billion, depending on adoption rates.
Furthermore, macro trends in technology improvement and institutional adoption provide strong tailwinds. The acceptance of Layer 2 solutions and increasing institutional interest, evidenced by Bitcoin ETF applications from major firms, indicate a promising future for Bitcoin's expansion beyond its current limitations.
Key Players and Their Contributions
At the core of Mezo's groundbreaking vision are several key individuals, who bring a wealth of experience and expertise. Leading the charge is Mezo’s CEO Matt Luongo, who co-founded Thesis and previously served as CTO of Scholrly. Carolyn Reckhow, Mezo’s COO, has extensive experience from her roles in global operations at Consensys and Casa, ensuring the smooth execution of operating strategies. Mezo’s CTO Antonio Salazar Cardozo leverages his deep technical expertise from his tenure as Tech Lead at Keep Network to drive technological innovations. Together, these leaders, supported by a team of seasoned professionals, are dedicated to building a scalable and innovative Bitcoin Layer 2 solution.
Pantera led a $21m round into Mezo with other top tier investors.
Conclusion
In conclusion, Mezo represents a significant advancement in the Bitcoin ecosystem, addressing long-standing issues of scalability and programmability. By building an EVM-compatible Bitcoin Layer, Mezo is set to unlock new potentials for Bitcoin in DeFi and beyond. With strong leadership, recent technological upgrades, and growing institutional interest, Mezo is positioned as a key player in the future of Bitcoin scalability and Bitcoin applications.
Interested in learning more? Check out Mezo’s website here!
- Paul Veradittakit
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ABOUT ME
Hi, I’m Paul Veradittakit, a Managing Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing in blockchain companies and cryptocurrencies. I’ve been in the industry since 2014, and the firm invests in equity, early stage token projects, and liquid cryptocurrencies on exchanges. I focus on early-stage investments and share my thoughts on what’s going on in the industry in this weekly newsletter.
If you have an projects that need funding, feel free to DM me on twitter.