Since its birth Bitcoin ((((BTC-USDIn 2009, centralization was the main opponent of almost all projects. But lately, every time one of Hydra’s heads is cut off, it seems that two more pop-ups will appear, from hacking the Ethereum bridge to the turmoil of exchange sanctions. Who is the next community to be thrown into the loop after today’s presidential directive on Biden’s cryptocurrency?
Currently, four projects in the Bitcoin ecosystem aim to bring new life to the dream of decentralized finance (DeFi) … providing BTC’s most famous and superior security and durability.
“All roads lead to Bitcoin”
Our own Charlie Shrem dedicated his latest episode Secret story Russia’s invasion of Ukraine means “today everyone sees Bitcoin as this money rather than traditional fiat money,” so a podcast to this topic.
“It’s a little sad that the power of Bitcoin actually shines in the event of a conflict,” said Charlie’s guest, Dr. Muneeb Ali, co-founder. stack ((((STX-USD) And another OG of Bitcoin. “Hopefully, no one in the world needs to personally seize assets and experience a currency collapse.” “They can still see big events and realize that this is very important.”
And, of course, Bitcoin not only offers the benefits of borderless and neutral transactions, but also has the highest security … but as the greatest crypto, it also offers the greatest value “available for anything else”. increase Moreover Money, as Charlie mentioned elsewhere in the podcast yesterday.
Below, we can see that even if BTC has a market capitalization of less than $ 1 trillion in these crypto slumps, its value is more than doubled. Ethereum ((((ETH-USD) Is working in multiples of other competitors.
Of course, the reason why Bitcoin has the highest security and is only used for one purpose: currency.
Bitcoin’s streamlined programming reduces openings for malicious individuals and also reduces versatility. There was no such thing as a smart contract in the world of Bitcoin … until a project like Stacks on Muneeb Ali came out. Let’s take a look at the stack and three other Bitcoin DeFi projects you should know about.
Smart contract on stack (STX-USD)
Do you remember CityCoins? By agreeing to pay in Bitcoin, the mayors of Miami and New York influenced a project that would allow their members to invest in their hometown using cryptography. But to do that most efficiently, CityCoins was built on the stack.The stack covers the entire block of STX transactions one Bitcoin trading.
Stacks does this using smart contracts that are virtually unprecedented in the Bitcoin ecosystem. Indeed, Bitcoiner will be off-chain via Lightning Network. But still it’s all about making payments … just at faster speeds and quantities.
However, smart contracts Any The crypto community, Muneeb Ali, says. Without them, there is not much room for developers to bring new value to their users and keep the Bitcoin ecosystem at the center of the new digital world.
“For example, if you are interested in starting Stablecoin that uses Bitcoin as a reserve asset behind it. Or if you want to create a Bitcoin NFT. Or you can lend Bitcoin in an unreliable way. You need a lending protocol that you can. As Muneeb explained in Charlie’s podcast on Tuesday, these types of applications can be built through a programming layer like Stacks.
Also, there are many loopholes for hackers to exploit in other networks, so “in my dissertation, you’ll see much of that activity in the Bitcoin ecosystem.”
If you are looking for a secure yield on your crypto-without trusting it to one of the crypto bank startups-you can earn Bitcoin by holding STX! This is due to Stacks’ proprietary protocol called Transfer Proof (PoX). STX miners need to use BTC to create new blocks. The BTC will be sent to the “stacker” who chooses to lock up the STX to assist in validating the new block.
Also, a new project called Arkadico is being developed, “you can actually deposit Bitcoin in some kind of reserve and mint stablecoin,” said Munib Ali. Secret story.. By putting STX coins in Arcadico’s “vault”, you can earn rewards with USDA, a decentralized stablecoin. Second, if you want to access your funds without actually selling the crypto, Vault will be your loan collateral.
Stack’s smart contracts allow Bitcoiners to develop new applications of any kind.
Three more projects to bring DeFi to Bitcoin Land
Another Bitcoin smart contract solution is Mint layer ((((MLT-USD).
Mintlayer “is a sidechain of Bitcoin, remains close to Bitcoin’s design philosophy, and deviates from it only when it is absolutely necessary to provide advanced features.” It will be the “prime layer of Bitcoin for tokenization”. Real vision encryption.. The Mintlayer protocol also runs “embedded DEX” or decentralized exchanges.
The main issues with interacting with you #Bitcoin Today, you need to trust it in a much less secure distributed network. Wrap Bitcoin or “vault” within the PoS blockchain.When @mintlayer You get almost the same level of security as Bitcoin blocks.
— Charlie Shrem (@CharlieShrem) February 9, 2022
Then there is RSK Smart Bitcoin ((((RBTC-USD), About the details of mining play.
RSK’s smart contracts are “protected by the Bitcoin hash power of merged mining.” Miners can reuse calculations from Bitcoin in RSK to get more profit (and energy used).Good at the time of pressing 49% Bitcoin miners are also mining RSK!
Sovryn ((((SOV-USD) Is one of the DeFi projects feature By Bitcoin celebrity Anthony Pumpriano. In fact, it is “mainly resident” on the RSK blockchain and uses RBTC in smart contract systems, reports fellow Bitcoiner Dan Held.
Sovryn is known as a trading and lending platform. We offer an automated market maker (AMM) that allows you to make instant trades, take out loans with only 2.86% APY and enter harvest farming using wrapped Bitcoin RBTC.
“Everyone understands that even the hardcore Excessivists of Ethereum are the healthiest money they have,” Charlie said. Secret story.. “I’ve invested in dozens of blockchains, [and] Last year or two or so, I’m really back. If it concerns people’s money, my money, then this needs to be related to Bitcoin. “
Conclusion: Bitcoin can be very noteworthy when looking to the future of decentralized finance.
Contribution Editor, New digital world
As of the date of publication, Ashley Kassel did not have (directly or indirectly) the position of the securities listed in this article. The opinions expressed in this article are those of the authors covered by InvestorPlace.com. Public guidelines.. To send news from your new digital world to your inbox Click here to sign up for our newsletter.