For years, Bitcoin (BTCHe remained in digital hibernation, which means that it is tightly kept in governors and admired as “digital gold”, although it is rarely used. According to Starkware’s Bitcoin Lead Ilia Volokh, that era may end.
In the latest episode of Clear Crypto Podcast, Nathan Guevai and Gareth Genkson hosts what it means to develop Bitcoin from a fixed value store into a dynamic financial tool.
Opening new use cases
The conversation focuses on how to open innovations such as Bitcoin wrapped and unreliable bridges of the new uses of the most famous cryptocurrency in the world.
“There is a fantasy that people link that they will put gold under their bed and that it will double in one way or another. It is clear that gold is below the rank in the literal sense, this is not possible.” “For Bitcoin, it is not clear that it is not possible.”
He explains that the technical barrier is that the Bitcoin base protocol has been deliberately designed with limited functions.
Unlike the ether (Eth) Or Solana (TellerBitcoin does not originally support smart contracts or decentralized financing applications (Defi). However, the demand grows exactly this type of job.
“People want to do things with her, but they cannot do so much yet,” Genkenson said. However, Volge refers to the near future where this may change.
“We have finally reached a point where there are technological innovations that allow you to do different things with Bitcoin.”
Related to: Is Fomo’s return? Bitco First Timers Buy 140K BTC in two weeks
Bitcoin ftw wrapped?
The first solution is “Bitcoin Cabbage”, which allows users to deposit BTC with a trusted tip that issues a symbolic version of another chain like Ethereum. But this method requires abandoning custody, which is something that the harsh bitcoin opposes.
“For many bitcoin, this is largely the worst scenario of cases … they don’t want to accept this defect.”
Enter the following generation: unreliable or low -confident bridges. These tools allow bitcoin holders to interact with Defi protocols without giving up their assets.
While the unreliable solutions really require protocol changes, such as OP_Cat empowerment, the OPCoss symbol that has long been discussed, Volokh admits that cultural resistance within the Bitcoin Core community makes this unlikely.
However, the hybrid methods gain strength, especially for two cases of use in the real world: borrowing dollars against bitcoin and generating the return through the “BTC” of third parties. Both are already widely used.
“It would be good to connect this huge capital to the rest of the financing.” – Elijah Volkh
To hear the full conversation on PodCast Clear Crypto pageand Apple podcast or Spotify. And don’t forget to check for the complete Cointegraph collection from other offers!
publish_date
