This article explains why Bit2 (a new Bitcoin L2 based on client-side validation) is immune to the Mass Exit Problem.
Even if the entire Bit2 infrastructure fails, there's no bank-run scenario. Funds remain safe, and users can exit whenever they choose—or simply swap their BTC and avoid the exit process altogether.
Our series on Bit2's features continues. This time: what self-custody actually means in a Layer 2 payment network.
Holding your private keys is only part of the story. A user truly controls their assets only if they can spend them, recover them, and withdraw them under adverse conditions.
Three properties determine whether that's real: Unilateral Access, Uncensorable Exit, and Mass Exit Safety.
Most networks satisfy one or two during normal operation. The real test is whether all three hold when everything goes wrong simultaneously.
Bit2 was designed around that standard from the start.
Discover the latest entry in our series on the features defining Bit2, Fairgate's Bitcoin-native payment layer for the agentic economy.