Many projects claiming to be Bitcoin (CRYPTO:BTC) Layer 2 solutions may not meet the technical criteria, as they function more like sidechains rather than true Layer 2s that inherit security from Bitcoin's main chain.

The debate, highlighted by industry experts, centers on whether these solutions truly enhance Bitcoin's scalability and security as intended.

While Lightning Network stands out as a genuine Layer 2, employing off-chain channels anchored to Bitcoin's security, others rely on sidechains with separate security models.

This distinction is crucial for understanding the risks and capabilities associated with these scaling solutions amidst significant venture capital investment.