Mmm, I can have my #Bitcoin and eat it too! ...with BITCOIN LAYERS 🍰 😋 Many projects are scaling Bitcoin's productivity, with @Stacks and ICP leading the way (imo), however not all meet technical standards to be considered a genuine sidesystem.

Therisk analysis initiative has established minimum standards to determine what qualifies as a true Bitcoin Layer. These include having an official, federated 2-way peg with a disclosed operator set, among other trust and security benchmarks. Many well-known projects - Merlin Chain, Bsquared Network, Rollux, and others - fail to meet these requirements and are now being reclassified as alternative chains.

Stacks, however, satisfies these criteria, firming its position as a Bitcoin Layer. This is recognition of Stacks’ role in creating Bitcoin-native solutions that inherit Bitcoin’s security while enabling innovation through smart contracts, decentralised apps and more.

For those of us advising businesses and startups, this distinction matters. Unlike financial advisers who may be appropriately focused on “Bitcoin Only” investment strategies, accountants help clients unlock value from their assets to grow their businesses.

Bitcoin Layers like Stacks and its sBTC protocol are where businesses can innovate with income-generating digital assets that stay grounded in Bitcoin’s security. The Bitcoin on their balance sheet can be used in commercial applications to make more Bitcoin.

Tim Draper once likened Stacks to early Microsoft. For those of us who remember the early days of the internet, it’s clear what he means. Just as Microsoft enabled businesses to harness the internet for growth, I think Stacks will lead businesses to integrate Bitcoin into their operations - making Bitcoin more productive across the economy.

I also see the potential of Stacks sBTC inspiring the design of new currencies to run on Bitcoin rails, leading to a universal Bitcoin unit-of-account and global reserve asset (everything divided by 21m).

The role of an accountant in this emerging economy goes far beyond compliance. We focus on governance, internal controls, and managing risk. The Bitcoin Layers initiative’s emphasis on trust assumptions triggers our instincts. Businesses navigating these technologies need guidance, not only on what they can do with Bitcoin but also on the risks they take when using Bitcoin Layers and sidesystems.

This is why I’m not “Bitcoin Only.” I’m Bitcoin Everything. Bitcoin Layers like Stacks are the bridge between Bitcoin’s foundational strength and the growing need for productive use cases in a digital economy.

For accountants advising in the Bitcoin economy, this is where we find our place - helping businesses make smarter, more informed decisions while keeping their Bitcoin safe.

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This post was a fun excuse to play with Canva. Now I have to get back to work... trying to do the accounting for these transactions is like losing cake-binge weight gain 😆
#Bitcoin