Overgrown with L2 Weeds: “Bitcoin Magazine” Sets Reporting Standards for Bitcoin Layer 2 Protocol

Utilizing Native Assets: L2 must essentially use Bitcoin as its primary currency, including for payment fees, and any tokens must be backed by Bitcoin.
Settlement Mechanism: L2 users should be able to exit to the underlying layer of Bitcoin, maintaining control over their funds through a reliable settlement process.
Dependency on Bitcoin’s functionality: The feasibility of L2 is closely linked to Bitcoin; without Bitcoin, it can still operate, but it would not meet the criteria for a true L2.