Bridging Bitcoin with the World of Smart Contracts Using CoreDAO
From the outside looking in, the blockchain landscape has evolved at breakneck speed over the past decade, with new projects emerging seemingly every day. Despite this progress, one major challenge that has continued to loom large has been the underutilization of Bitcoin’s dormant capital reserves, which currently stand at over $1 trillion. While bitcoin is a great asset for holding, it shouldn’t be relegated to just that.
Bitcoin’s dormancy, while a testament to its strength as an unbreakable “digital gold” asset, has also meant that a vast amount of potential capital has remained untapped for more dynamic economic activities. That said, over the past couple of years, a new wave of innovative projects has emerged, aiming to unlock bitcoin through novel yield opportunities and more scalable, Bitcoin-aligned financial rails.
In this regard, Core stands out as the first Bitcoin-aligned EVM blockchain aiming to bridge the gap between Bitcoin’s robust security and the need for scalable smart contracts. By bringing native yield, smart contracts and DeFi dapps to Bitcoin, Core is pioneering Bitcoin DeFi (BTCfi) and unlocking the Bitcoin asset.
Helping Bitcoin flourish
At the heart of Core’s innovation is the Satoshi Plus consensus mechanism, which combines Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking. This blend helps leverage Bitcoin’s security and decentralization while enhancing scalability and utility. Through DPoW, Bitcoin mining pools can delegate their hash power to Core Validators, earning additional CORE token rewards alongside their regular bitcoin rewards. This alignment strengthens network security and incentivizes participation from the Bitcoin mining community.
Core’s Non-Custodial Bitcoin Staking feature is particularly unique since it allows bitcoin holders to earn yield without moving their assets off the Bitcoin blockchain. By locking their bitcoin on the Bitcoin blockchain, holders can delegate their tokens to Core Validators, thus earning rewards while maintaining asset integrity. This innovation introduces the concept of the “Bitcoin Risk-Free Rate,” providing a secure way for holders to earn yield on their bitcoin holdings without any new trust assumptions.
Within this larger context, the Core blockchain has demonstrated impressive growth and adoption metrics, with the network boasting over 7 million CORE token holders, 19 million total addresses, 272 million total transactions processed, and $300 million in total value locked.
Bridging Bitcoin to DeFi with coreBTC
To further bridge the divide between Bitcoin and the larger DeFi landscape, Core also enjoys a native wrapped bitcoin asset called ‘coreBTC.’ It addresses many of the centralization bottlenecks found in previous wrapped bitcoin implementations by ensuring that the minting and redemption processes are decentralized and trustless. This is achieved through a network of Lockers, entities that securely hold users’ Bitcoin on the Bitcoin blockchain. This approach makes coreBTC a robust, Bitcoin-backed asset for scalable use within BTCfi.
Shaping the Future of Bitcoin DeFi
As the cryptocurrency industry continues to evolve and grow, contributors to Core are actively working on developing the BTCfi ecosystem. Initiatives like Core Ignition and events such as the BTCfi Summer Hackathon have been invaluable in terms of fostering innovation and growth in the BTCfi space.
Therefore, as more developers and users explore the possibilities presented by Bitcoin-powered smart contracts on Core, it is not unreasonable to expect a new wave of dApps that leverage Bitcoin’s security and liquidity in novel ways. With over $1 trillion in Bitcoin value currently underutilized, Core’s innovative suite of solutions stands to unlock significant economic activity within the broader crypto economy.
Disclaimer
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About The Author
Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
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Gregory, a digital nomad hailing from Poland, is not only a financial analyst but also a valuable contributor to various online magazines. With a wealth of experience in the financial industry, his insights and expertise have earned him recognition in numerous publications. Utilising his spare time effectively, Gregory is currently dedicated to writing a book about cryptocurrency and blockchain.
