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Here Is Why Bitcoin Will Dominate Decentralized Finance

Sat 30 Nov 2024 ▪ 3 min read ▪ by Fenelon L.
Getting informed Event

Charles Hoskinson, the creator of Cardano, anticipates a major transformation of the crypto landscape in the coming years, predicting that decentralized finance based on Bitcoin will surpass all competing DeFi ecosystems.

Bitcoin evolue rapidement

A Radical Transformation of the Bitcoin Ecosystem

On November 27, Charles Hoskinson shared his vision during a notable intervention on YouTube. The founder of Cardano, who started his career in the Bitcoin universe, today observes a spectacular metamorphosis of the first cryptocurrency.

Bitcoin has transformed from a sleeping giant to an innovation force four times larger than Ethereum and Solana combined“, he asserts with conviction.

This renaissance is notably explained by the growing interest from institutions and governments in Bitcoin as a strategic reserve. The founder of Cardano believes that this momentum, combined with new DeFi capabilities, will propel the price of BTC to historic highs.

The expert emphasizes that the massive adoption of DeFi on Bitcoin is inevitable, mainly due to its unmatched liquidity and unique scale in the crypto industry.

A Technical Innovation Serving DeFi

To realize this vision, Hoskinson reveals a major innovation: the “DeFi mode” on the Cardano network. This new protocol will allow Bitcoin holders to fully participate in the DeFi ecosystem while retaining control of their private keys.

The system encapsulates Bitcoin in tokens on Cardano, thus providing access to decentralized exchanges and yield-generating financial products. The Cardano development team announced in October the launch of the Grail protocol, which establishes a direct bridge between the two blockchains.

The development of this infrastructure thus represents a significant advance towards the creation of DeFi applications secured by the power of the Bitcoin network, while preserving its fundamental characteristics as a store of value.

In conclusion, DeFi on Bitcoin could redefine the standards of decentralized finance, combining the unmatched security of the Bitcoin network with the flexibility of modern protocols. This evolution marks a decisive turning point in the maturation of the crypto ecosystem.

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Fenelon L. avatar
Fenelon L.

Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.