🔥🔥🔥 Bitcoin needs #DEFI , consumer apps, to see mass adoption: L2 devs
Several layer-2 networks for Bitcoin, including Bitcoin Virtual Machine (BVM), Spiderchain, and BitVM, are emerging to expand Bitcoin's functionality beyond its current roles as a currency and "digital gold." Developers argue that for Bitcoin to achieve mass adoption, it needs to open up to the decentralized finance (DeFi) sector, estimated to be a $57 billion industry.
Bitcoin layer-2 networks like BVM are adopting a modular meta-protocol architecture, allowing the creation of customized layer-2 blockchains on Bitcoin. BVM connects the Ethereum Virtual Machine (EVM) with Bitcoin, enabling the development of decentralized applications (DApps) and DeFi projects on the Bitcoin network.
Willem Schroé, founder of Botanix Labs and creator of Spiderchain, emphasizes that Bitcoin's potential won't be fully realized until it integrates with the broader financial system. Spiderchain, a proof-of-stake layer 2 with EVM to EVM bridges, facilitates interaction between Bitcoin and the Ethereum ecosystem, including real-world assets, stablecoins, DeFi, and NFTs.
However, the expansion of Bitcoin's capabilities through layer-2 solutions is not without controversy. SatoshiVM, a community-driven project with an EVM-compatible #Layer2 solution , faced controversy over its recent token launch, leading to a significant drop in its token value.
BitVM, led by ZeroSync project lead, focuses on scaling Bitcoin's transaction speed instead of implementing smart contracts or introducing Ethereum Virtual Machine-like tokens. Some developers caution against building decentralized exchanges on Bitcoin, viewing it as a potential step backward for the network.
Developers agree diversifying Bitcoin's use beyond peer-to-peer payments is crucial. GameFi, SocialFi, art, and AI apps on platforms like BVM show a growing interest in making Bitcoin more programmable, aligning with #satoshiNakamoto 's vision.
Source - cointelegraph.com
