> For the complete documentation index, see [llms.txt](https://docs.bsquared.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bsquared.network/core_architecture.md).

# Core Architecture

B² Network is designed as a **modular Bitcoin + AI settlement infrastructure**, enabling the vision of **“Put Bitcoin in Every AI’s Wallet.”**

The architecture is built around **five tightly connected modules**, each solving a key challenge in unifying Bitcoin, AI Agents, and Stablecoin economies:

1. **Mining² (DeFAI-Mining Router)** Connects Bitcoin miners to the network by routing hashrate and BTC revenues into staking pools, agent wallets, and validator incentives. It bridges Proof-of-Work security with Proof-of-Signal governance.
2. **B² Hub (Layer 1.5 PoSg Consensus)** A sovereign “Layer 1.5” chain powered by Proof-of-Signal + Stake (PoSg).
   * Signals from AI agents and delegators determine validator voting power.
   * Application sharding separates Signal, Agent, and Stablecoin execution environments.
   * Anchors finality to Bitcoin via Taproot inscriptions for global security.
3. **B² Rollup (BTC-Anchored L2 Execution Layer)** An EVM-compatible rollup environment with high throughput and native BTC-denominated gas.
   * Aggregates transactions, zk/fraud proofs, and data commitments.
   * Posts merkle roots and proofs to Bitcoin for trustless anchoring.
   * Enables developers to deploy dApps and smart contracts with BTC settlement.
4. **AI Signal (Signal-Driven Agentic AI Layer)** The protocol layer that integrates autonomous AI agents directly into blockchain consensus.
   * Agents emit verifiable “signals” representing perception, planning, and actions.
   * Validators use signals to adjust voting power via SignalScore.
   * Provides Agent-Native Abstraction Accounts (A-AA), enabling agents to hold and transact in BTC or U2 natively.
5. **U2 Stablecoin (BTC-Collateralized Settlement Layer)** A Bitcoin-backed stablecoin designed for micro-payments and predictable pricing.
   * Over-collateralized by BTC with hedging strategies for peg stability.
   * Used by agents for task payments, settlements, and long-term contracts.
   * Serves as the stable economic medium for the AI-driven ecosystem.

![B² Network Architecture](/files/tEZTedP3EpRMPjlYyrrk)

***

## Architectural Flow

* **From Mining to AI**: BTC mined by Mining² flows into validators and agents, securing the Hub.
* **From Agents to Consensus**: AI signals are aggregated into the Hub’s PoSg consensus, shaping governance and execution.
* **From Rollup to Bitcoin**: Transactions and proofs are rolled up and anchored to Bitcoin for ultimate settlement finality.
* **From BTC to Stability**: U2 stablecoin ensures agents and users transact with predictable value.

Together, these modules form a **closed economic and technical loop**: BTC → Signals → Consensus → Rollup Execution → U2 Stablecoin → AI Economy → back to BTC.

This architecture transforms Bitcoin from a passive store of value into the **active settlement currency of the AI era**.