EVM Chains as Bitcoin L2: Solving Native Wallet Incompatibility

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The Bitcoin ecosystem is undergoing a transformative phase, with Layer2 (L2) solutions emerging as pivotal players in enhancing scalability and functionality. Unlike Ethereum, which has a more standardized path toward L2 adoption via Rollups, Bitcoin lacks a universally accepted "canonical" Layer2 framework. This absence has opened the door for innovative — and sometimes controversial — approaches, such as leveraging EVM-compatible chains as de facto Bitcoin L2s.

This model treats Bitcoin’s mainnet primarily as a secure settlement layer while offloading computation and transaction throughput to high-performance EVM chains. However, this hybrid architecture introduces a critical challenge: Bitcoin-native wallets like Unisat or Xverse are incompatible with EVM environments, forcing users to rely on MetaMask or similar multi-chain tools. This friction disrupts user experience and creates barriers for native Bitcoin users, especially those drawn into the ecosystem through inscriptions and ordinals.

Enter Particle Network — a project introducing BTC Connect, an account abstraction solution designed to bridge Bitcoin wallets directly to EVM chains without requiring users to switch tools or understand complex cross-chain mechanics.


Why Use EVM Chains as Bitcoin Layer2?

Bitcoin’s UTXO model and limited scripting capabilities make native smart contract development cumbersome. While promising technologies like BitVM and client-side validation are in early stages, they remain technically intricate and slow to deploy. In contrast, EVM chains offer:

Projects like Merlin Chain and LumiBit capitalize on these advantages by anchoring Bitcoin’s security while building scalable execution layers on EVM-compatible blockchains. Their approach is simple: lock BTC on the mainchain, mint wrapped BTC (or other representations) on an EVM chain, and enable rich interactions within that environment.

👉 Discover how seamless cross-chain integration can transform user experience

But the real bottleneck lies not in the technology itself — it's in user accessibility.


The Wallet Compatibility Problem

Bitcoin wallets such as Unisat, Xverse, or Leather use Bitcoin-specific cryptographic signatures based on ECDSA over secp256k1, but with different message formatting and signing logic than Ethereum’s personal_sign standard used by MetaMask. As a result:

For example, a user holding BTC and BRC-20 tokens in Unisat who wants to participate in Merlin Chain’s DeFi protocols must:

  1. Bridge BTC to Merlin (e.g., via a dedicated portal)
  2. Receive wrapped BTC on Merlin
  3. Import or connect MetaMask to interact with DApps
  4. Manage two separate wallets and seed phrases

This disjointed flow contradicts the core principle of Web3: self-custody with simplicity.


Particle Network’s Solution: BTC Connect & Account Abstraction

Particle Network introduces BTC Connect, an account abstraction layer built on ERC-4337, enabling native Bitcoin wallets to interact seamlessly with EVM chains. Here’s how it works:

When a user connects their Unisat wallet to a supported DApp on Merlin Chain:

  1. Particle generates a corresponding smart contract wallet (Smart Account) on the EVM chain.
  2. This Smart Account acts as a proxy, linked cryptographically to the user’s Bitcoin address.
  3. All transaction signing requests are routed back to Unisat via Particle’s relay infrastructure.
  4. The user signs using their familiar Bitcoin wallet interface — no new keys, no MetaMask required.

Behind the scenes, Particle handles the translation between Bitcoin’s signing format and Ethereum’s EIP-1271 verification standard, ensuring full compatibility without compromising security.

Real-World Use Case Example

Imagine Alice wants to swap her bridged BTC for another token on Merlin Chain:

To Alice, it feels identical to using any Web2 service — except she retains full control of her keys.


Beyond Wallet Bridging: Advanced Features Enabled by AA

Because BTC Connect is built on ERC-4337, it unlocks powerful capabilities beyond simple compatibility:

👉 Explore how next-gen wallet experiences are reshaping blockchain adoption

In essence, one Bitcoin wallet could eventually access the entire EVM universe — all without exposing users to technical complexity.


Challenges and Considerations

While promising, this architecture raises important questions:

1. Asset Security During Bridging

Transferring BTC or inscription-based assets (like BRC-20s) requires trust-minimized bridges. Projects must implement robust fraud-proof systems or decentralized validation layers to prevent theft or double-spending.

2. Indexing and Data Availability

EVM chains need reliable indexers to track Bitcoin state changes, including UTXO updates and inscription mints. Without accurate data pipelines, cross-chain operations risk inconsistency.

3. Decentralization Trade-offs

Some implementations rely on centralized sequencers or relayers. Long-term sustainability demands decentralization of these components.

4. User Education

Even with seamless UX, users should understand that wrapped assets are representations — not native BTC — and depend on bridge integrity.


FAQ: Common Questions About Bitcoin L2s and Wallet Integration

Q: Can I use my Unisat wallet directly on Ethereum or other EVM chains?
A: Not natively — but with Particle’s BTC Connect, you can interact with EVM-based DApps without leaving Unisat. The system abstracts away technical differences behind the scenes.

Q: Is my private key ever exposed when using account abstraction?
A: No. Your private key remains securely within your Bitcoin wallet. Particle only receives signed messages; it never accesses your keys.

Q: What happens if the bridge gets hacked?
A: The security of bridged assets depends on the bridge design. Trust-minimized models (e.g., fraud proofs or ZK proofs) reduce risk compared to centralized custodians.

Q: Does this make Bitcoin ‘Ethereum-like’?
A: Not exactly. Bitcoin retains its role as a secure settlement layer. The EVM chain handles execution — combining strengths without altering Bitcoin’s core properties.

Q: Are there gas fees involved?
A: Yes — but thanks to paymaster support, dApps can sponsor gas costs for users, enabling truly gasless experiences.

Q: Can I move inscriptions (e.g., BRC-20 tokens) using this method?
A: Currently, most solutions focus on BTC bridging. Supporting inscriptions requires additional infrastructure for tracking and verifying metadata across chains — an area under active development.


Final Thoughts: Pragmatism Over Purity

Critics may argue that using EVM chains as Bitcoin L2s deviates from “true” Bitcoin ideals — favoring convenience over native innovation like BitVM or Taproot Assets. But history shows that adoption often favors usability over theoretical purity. Ethereum’s Rollup-centric roadmap wasn’t obvious at first; it emerged from experimentation and market feedback.

Similarly, treating EVM chains as pragmatic extensions of Bitcoin’s ecosystem allows rapid iteration, broad access, and immediate utility — especially for users already invested in Bitcoin’s cultural and economic momentum.

Particle Network’s BTC Connect exemplifies this trend: solving real-world friction with elegant engineering, enabling millions of Bitcoin holders to explore DeFi, NFTs, and Web3 without abandoning their preferred tools.

👉 See how unified crypto experiences are evolving in 2025

As the Bitcoin L2 landscape evolves, solutions that prioritize interoperability, security, and user-centric design will likely shape the future — regardless of ideological debates.