Disclaimer: The Industry Talk section presents insights by crypto industry players and is not part of Cryptonews.com’s editorial content.
Since its inception, the Bitcoin blockchain has undergone several transformations, resulting in several hard forks and soft forks. Recently, Bitcoin’s core developer performed a technical upgrade of Taproot to improve transaction privacy and efficiency while at the same time introducing intelligent contract functionality in the legacy blockchain.
Among the benefits this upgrade delivers, Taproot will ensure significantly reduced transaction costs, which will play a key role in supporting projects that connect Bitcoin to a wider DeFi and NFT ecosystem. At the same time, the Taproot upgrade also improves privacy and security, thus benefiting the entire Bitcoin user community.
Several promising projects have already used these newly added features, thus accelerating the growth and adoption of DeFi and NFT in Bitcoin blocks. Below are some Bitcoin -based projects that have led the transition of legacy blockchain to new technologies.
Layer-2 Revolution For Bitcoin Network
While the idea of integrating DeFi into the Bitcoin network has been circulating for some time, RSK Network has successfully created the first Bitcoin-secure smart contract platform. To ensure Bitcoin and the DeFi ecosystem achieve long -term sustainability, RSK’s promise solution adds value and functionality to its legacy network by enabling the above -mentioned smart contracts.
By combining the best attributes of the Bitcoin and Ethereum networks, RSK has positioned itself as the highly scalable and first smart contract platform covered by the Bitcoin network. As a result, the RSK infrastructure enables unreliable and transparent DeFi opportunities such as lending, borrowing, trading, and gaining interest in crypto assets.
RSK offers native -level support for all Smart Solidity Contracts and Ethereum APIs, making it relatively easy for dApp developers to migrate existing dApps into the Bitcoin ecosystem. Recently, the RSK ecosystem gained 72%hash power, strengthening its position as the best Layer-2 solution in Bitcoin blockchain.
When it comes to Total Value Locked (TVL), RSK has more than USD 134 million locked in a DeFi project built on top of it. The platform has also amassed more than 50,000 active users in a short period of time. In addition, the RSK ecosystem has completed more than 259,000 smart contract transactions to date, further underscoring the ever -increasing demand for Bitcoin DeFi.
In addition to DeFi, RSK simultaneously facilitates the growth of NFT in Bitcoin blocks. For example, Nifty Labs is currently building an RSK -supported NFT marketplace, which will allow creators to print NFT on the Bitcoin blockchain directly. Users can also trade NFT for a number of RSK-based tokens and stablecoin, including rBTC, RIF, DOC, RDOC, MOC, and more.
Finally, there are various stablecoins based on RSK, which are backed by Bitcoin (BTC) – the most liquid cryptocurrency. The RSK MoneyOnChain -based stablecoin project offers DollarOnChain (DoC) stablecoin, guaranteed in a 1: 1 ratio with BTC. Stablecoin specializes other platforms such as RIF On Chain DeFi platform RIF Dollar on Chain (RDOC) and XUSD original RSK pegged at 1: 1 with the US Dollar.
The DeFi Platform Uses Bitcoin And Layer-2
Built on the Bitcoin blockchain, PortalThe self-hosted and cross-chain Layer-2 DEX wallet, is committed to lowering DeFi entry barriers by facilitating a private and secure environment with the narrowest fee possible.
The platform combines the best features of the Bitcoin network and a Layer-2 solution to enable a sensor-resistant, trust-minimized, and peer-to-peer DeFi ecosystem. The portal uses Fabric, a layer-3 peer-to-peer marketplace for computing, to implement an ephemeral computing infrastructure using smart contracts across various blockchain platforms and chains based on smart contracts.
Due to its design, the Portal ensures that cross-chain contracts are moved to Layer-2 and Layer-3, thus increasing transaction speed and reducing transaction costs. At the same time, it uses the core features of Bitcoin to maintain security, privacy, and transparency and the value of BTC to maintain liquidity. Simply put, the Portal opens up the real potential of the Bitcoin network to achieve “true” decentralization.
Supported by leading investors like Coinbase Ventures and a few others, the Portal supports a variety of DeFi services in the Bitcoin chain while maintaining anonymity in an open and transparent marketplace. For example, the DEX Portal, the world’s first sensor-resistant decentralized (DEX) cross-chain exchange, facilitates anonymous and zero knowledge exchange. Eliminates the need for bridges to connect other chains or bundles of assets (BTC to wBTC, etc.) before transferring digital assets from one chain to another.
Enable Advanced DeFi Application In Bitcoin
As a decentralized blockchain platform used to provide fast, intelligent, and transparent DeFi services, DeFiChain aims to bring full DeFi capabilities to the Bitcoin ecosystem.
Launched in 2019 on the Bitcoin network as a soft fork, DeFiChain is a fully decentralized platform that offers a variety of DeFi services, including token wrap, loans, loans, decentralized exchanges, asset tokenization, yield farming, price oracle, and more . . All transactions on DeFiChain are non-Turing complete, which makes them faster while lowering gas costs and reducing the chances of smart contract errors.
Although built on top of Bitcoin, DeFiChain uses a hybrid version of Proof-of-Stake (PoS) and Proof-of-Work (PoW) consensus mechanisms to facilitate transactions and encourage network participation. This addresses three critical issues that currently cloud the DeFi ecosystem: issues of scalability, security, and decentralization.
Users can generate passive returns on ownership by using DeFiChain’s staking features, liquidity mining, and dLoans. By following DeFiChain’s consensus mechanism, users can achieve up to 63% APY. Alternatively, users can lend assets to the DEX platform and get an APR of up to 100%. Lastly, DeFiChain also offers instant collateral -backed crypto loans, with users eligible to mint dUSD from DFI, BTC, ETH, and USDC.
