# How does SOULBOUND Contribute?

Innovation in Layer 2 Solutions: By building on Bitcoin's Layer 2, SOULBOUND brings scalability and efficiency to transactions, enabling faster and more cost-effective interactions while retaining the security benefits of the Bitcoin blockchain.&#x20;

Cross-Chain Integration: SOULBOUND’s foray into bridging the Bitcoin ecosystem with other blockchains, such as the BNB Chain, is a pioneering step towards interoperability. This not only enhances the utility of Bitcoin but also encourages a more interconnected blockchain ecosystem.&#x20;

New Financial Instruments and Services: Through features like BRC-20 and RGB-20 Minting, and Taproot Asset Creation, SOULBOUND is introducing new ways to utilize Bitcoin for asset tokenization and smart contract applications. This expands the scope of Bitcoin from a digital currency to a foundational layer for a variety of financial instruments.&#x20;

Empowering Community Governance: By creating a governance model centered around the $SBB token within the Bitcoin ecosystem, SOULBOUND empowers users with decision-making capabilities, fostering a community-driven approach to platform development and project selection.&#x20;

Strengthening the Bitcoin Investment Landscape: The SOULBOUND protocol, with its unique investment platform model, contributes to diversifying the investment opportunities available within the Bitcoin ecosystem, making it more accessible and appealing to a broader range of investors.
