---
description: >-
  LayerX Bridge provides a direct connection channel between the Bitcoin
  blockchain and BTC Layer 2 networks, enhancing liquidity and functionality.
---

# 4.1 Product Introduction

**Token Deposit Initiation** Users start by transferring their BRC20 tokens to a designated address managed by the LayerX Bridge system. This initial action triggers a verification process to confirm the deposit details.

**Token Minting Activation** After verification, the LayerX Bridge system proceeds to create a corresponding amount of BRC20 tokens within the BTC Layer 2 network, reflecting the initial deposit.

**Robust Security Measures** The LayerX Bridge regularly consolidates tokens stored across its managed addresses. These tokens are then securely transferred to centralized cold storage systems to protect assets.

**Token Withdrawal Facilitation** For withdrawals, the LayerX Bridge revokes the designated amount of BRC20 tokens from the BTC Layer 2 network. It ensures prompt return of equivalent assets from centralized cold storage to complete secure token management cycles.
