Charles Hoskinson proposes integrating Bitcoin with Cardano’s DeFi ecosystem using hybrid applications, focusing solely on Bitcoin transactions.
Cardano’s Babel fees mechanism will simplify transactions by allowing users to operate with native tokens without currency conversion.
The collaboration aims to combine Bitcoin’s security with Cardano’s advanced DeFi capabilities, enhancing blockchain interoperability and innovation.
Charle Hoskinson, the founder of Cardano, has outlined a strategy to link Bitcoin to DeFi through a hybrid application ecosystem. Highlighting Bitcoin's design and purpose, Hoskinson aims to apply Cardano technology to expand DeFi capabilities to Bitcoin while preserving them.
Hybrid Ecosystem Proposal
In a recent post on X, Hoskinson detailed his vision for a hybrid application ecosystem enabling Bitcoin’s seamless integration with DeFi. The proposed system would be powered by Cardano and designed to allow transactions exclusively in Bitcoin. However, By restricting the entry of other tokens, the ecosystem would prioritize simplicity and user-centricity, creating a focused environment for Bitcoin users.
https://twitter.com/IOHK_Charles/status/1861286232241906047
A notable feature of this proposal is Cardano’s Babel fees mechanism, which allows transactions using native tokens without requiring conversion to other currencies. This system is expected to enhance usability and streamline transactions, reducing user barriers. Hoskinson argued that such integration could solve Bitcoin’s stagnation problem while using Cardano’s highly sophisticated DeFi ecosystem.
Impact of Bitcoin’s Taproot Upgrade
Hoskinson acknowledged the contributions of Bitcoin’s core developers, particularly the implementation of the Taproot upgrade. It improves the works of Bitcoin’s scalability and improves its attribute for privacy, from which the Taproot protocol provides a stable sandbox for further improvement.
During his speech, Hoskinson described Taproot as a revolutionary outcome and expressed his desire to combine Bitcoin and Cardano. He believes this synergy could elevate both networks by combining Bitcoin’s security with Cardano’s technological advancements in DeFi.
Collaboration to Drive the Vision
Hoskinson highlighted the importance of partnerships in realizing this integration. Following recent discussions with Ripple CEO Brad Garlinghouse, he signaled plans to connect with other key players in the blockchain space. These collaborations aim to ensure that the ecosystem of hybrid applications remains free from greed and distractions while delivering its intended value to users.
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