DeFi

Jade ARdinals CEO Says Future of Bitcoin Defi Includes Smart Contracts

Published

8 months ago

25 May, 2024

Jade ARdinals CEO Says Future of Bitcoin Defi Includes Smart Contracts

2024-05-24 03:43:16 ET

Bitcoin is now entering the DeFi space with the introduction of BRC-20 tokens and ordinals. The Taproot upgrade made this possible by enabling the creation of decentralized applications (DApps) on the Bitcoin blockchain. This change enhances Bitcoin’s potential, allowing it to offer diversified financial services. These include decentralized exchanges, automated lending platforms, and non-fungible tokens (NFTs).

However, challenges remain. Scalability and transaction fees are major concerns. The increased transaction load of

BRC-20

tokens and

Ordinary

could make these problems worse. Solutions like

Layer 2 protocols

And

side chains

, such as Lightning Network, Stacks and Rootstock, are crucial. They help improve transaction throughput and reduce fees, ensuring network efficiency. Despite these obstacles, Bitcoin’s evolution into DeFi is promising, driven by continued innovation.

To dig deeper into these developments, Invezz spoke with Nathan, an analyst at Jade ARdinals, to discuss the opportunities and challenges in Bitcoin’s DeFi space.

Impact of BRC-20 tokens and ordinals

Invezz: BRC-20 tokens and ordinals now enable NFTs and fungible tokens directly on the Bitcoin blockchain. What impact do you see on the DeFi space of Bitcoin in terms of opportunities and challenges that could arise, particularly in terms of scalability and transaction fees?

The integration of BRC-20 tokens and ordinals into the Bitcoin network is a game-changer for Bitcoin’s DeFi space, but it also creates many challenges.

On the opportunity side, developers will be able to create DApps that take advantage of the security and decentralization of Bitcoin. This unlocks new tokenomic models and user engagement strategies, such as staking, farming, and liquidity management, similar to what we see on Ethereum and Solana.

Yet with these opportunities come challenges. Scalability is a major concern: transaction throughput has been the Achilles heel of the Bitcoin blockchain, and the addition of BRC-20 tokens and ordinals could make this problem worse. As more people use the network for these new functions, we may see transaction processing times slow down. Increased demand on the network could also lead to higher transaction fees, making it more expensive for users to process their transactions quickly.

Then there’s the technological complexity: maintaining a fast and efficient system while supporting a large volume of transactions is no easy feat. Solutions such as partially signed Bitcoin transactions (PSBT) and transaction batching manage these challenges, but do not completely solve them. I think layer 2 solutions will be more effective here.

Strategies for Resolving Scalability Issues

Invezz: As more people use Ordinals and BRC-20 tokens on Bitcoin, network congestion and rising fees have become significant issues. What strategies or innovations do you think are crucial to addressing these scalability challenges?

First, it’s crucial that we use layer 2 solutions. The Lightning Network is a good example: it processes instant, low-cost transactions through a network of payment channels that only settle net results on the Bitcoin blockchain. Similarly, projects like Stacks and RootStock (RSK) add programmability to Bitcoin, allowing more complex operations and smart contracts to be executed off-chain and using the mainnet for settlement.

Another solution is to improve the efficiency of blocks on the main chain. The Segregated Witness (SegWit) protocol upgrade, which separates transaction signatures from transaction data, has already helped increase the block size limit and improve transaction throughput. Future developments could also rethink how data is stored and processed within blocks.

Increasing block size or implementing dynamic block size adjustments can also help. By allowing block sizes to scale based on network demand, we can accommodate more transactions per block during peak times. However, it is crucial to maintain this balance: scaling too much could compromise the decentralization and security of the network.

In addition to the above, transaction bundling – in which multiple transactions are grouped into a single transaction – can help reduce the number of individual transactions, reduce congestion and reduce fees.

Invezz: There are obvious differences between BRC-20 tokens on Bitcoin and ERC-20 tokens on Ethereum, particularly regarding smart contracts and integration. How do you think these differences will impact Bitcoin’s ability to develop strong DeFi protocols and applications?

BRC-20 tokens and ERC-20 tokens are like different types of building blocks. For example, Ethereum’s ERC-20 tokens are similar to Lego. They are designed for seamless interoperability, flexibility, and integration, allowing developers to easily build complex DeFi applications.

Bitcoin’s BRC-20 tokens are more like traditional commodities: sturdy and reliable, they reflect the security and robustness inherent in Bitcoin. However, they are not as flexible or easy to use as ERC-20 tokens, making the development of integrated DeFi applications more difficult.

This difference makes Ethereum the preferred platform for DeFi protocols; Bitcoin, on the other hand, requires a more innovative approach to achieve similar functionality. For example, mechanisms such as Partially Signed Bitcoin Transactions (PSBT) and Taproot provide Bitcoin with some level of smart contract capability, although they are not as transparent or intuitive as Ethereum’s solutions.

Despite this, the strong foundations of Bitcoin and the growing use of BRC-20 tokens open up new opportunities for innovative financial solutions. Although it may face a steeper climb in the DeFi space compared to Ethereum, its secure backbone and ongoing innovations suggest a promising future.

Invezz: Layer 2 solutions have played a vital role in improving the scalability of Bitcoin and the implementation of DeFi applications. How do you think these networks will evolve to support a wider range of DeFi functionality on Bitcoin?

Think of Layer 2 solutions as tunnels that help Bitcoin handle more traffic without being too congested. These tunnels, like the Lightning Network, have already made Bitcoin faster and cheaper to use, which is very beneficial for DeFi.

As Layer 2 solutions continue to develop, they will become even more advanced, evolving to support features such as lending, borrowing and trading. This means that Bitcoin will be able to offer its users more convenient tools and opportunities – like Ethereum and its DeFi projects do.

We could also see new networks emerge, each specializing in different DeFi functionalities or serving specific needs. This diversity could make Bitcoin’s DeFi ecosystem richer, more powerful and more versatile.

Invezz: Projects like BitVM are considering adding smart contracts to Bitcoin. How do you think this will influence the development of Bitcoin’s DeFi ecosystem?

Imagine Bitcoin going from being just a currency to automating things like Ethereum does. This is what adding smart contracts, such as those BitVM is working on, could bring to Bitcoin.

If Bitcoin begins to support smart contracts, it could attract developers and users looking to create and use these new tools. Users could access a variety of financial tools and applications directly on the Bitcoin blockchain, without the need for intermediaries.

Bitcoin is already the largest cryptocurrency, so adding smart contracts could make its DeFi ecosystem one of the most robust and influential in the world.

Invezz: As Bitcoin’s DeFi ecosystem continues to evolve, what emerging innovations do you believe will shape Bitcoin’s DeFi landscape and strengthen its position in decentralized finance?

First, I believe we will soon see smart contracts integrated into the Bitcoin blockchain. Bitcoin will then be able to support a wide range of financial applications without relying on third-party platforms.

Second, Layer 2 products are the backbone of Bitcoin’s future. As solutions like Lightning Network are developed and adopted, they will improve scalability and transaction throughput, making DeFi applications on Bitcoin more user-friendly and efficient.

Third, protocols that enable transparent communication and asset transfers between different blockchains will allow Bitcoin to interact more effectively with other ecosystems. Interoperability is key to creating a more diverse and interconnected DeFi environment, where assets can flow freely across various platforms, increasing liquidity and usability.

Fourth, RWA tokenization is another important trend. It expands the range of assets available for DeFi applications, increases liquidity and introduces new financial products to the Bitcoin ecosystem.

Security enhancements such as confidential transactions and zero-knowledge proofs are also essential. They will bring more confidential DeFi transactions, protecting users’ financial privacy and network integrity.

Finally, we cannot overlook the power of community efforts. Just as enthusiasts tinkering in their garages laid the foundation for Silicon Valley, members of the Bitcoin community are experimenting and collaborating, leading to the creation of new protocols, applications, and governance models. This popular spirit is vital for the ecosystem to evolve and strengthen.

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Jade ARdinals CEO Says Future of Bitcoin Defi Includes Smart Contracts

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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