New Developments That Are Helping The Bitcoin Ecosystem Grow
Since the crypto industry has expanded so quickly over the past few years, Bitcoin ecosystem influence has grown significantly, going far beyond its status as just a store of money. This is because an increasing number of developers have continued to add to the infrastructure already present in the digital asset, making it possible for consumers to instantly utilize its high level of decentralization, network security, and scalability.
In this regard, it should be highlighted that smart contracts, or computer codes created to execute automatically, control, or document events and actions according to the requirements of a predetermined contract, can be performed on the Bitcoin network through specific third-party solutions.
Because of its superior transaction throughput capacity and Turing completeness, which allowed complex applications to be built and executed on top of it, Ethereum had previously been regarded as the darling of the crypto developer community. However, recent Bitcoin developments have made the flagship cryptocurrency extremely popular among app builders.
Bitcoin has made significant progress in enabling developers to use the network to create cutting-edge smart-contract-based solutions while giving them access to all the advantages provided by the project, such as censorship resistance, access to significant liquidity, high transparency, etc.
“It is inevitable that the Bitcoin ecosystem will continue to grow and contribute to the economy. The question is: where?”
— Jameson Lopp (@lopp) July 17, 2019
A closer look at the developing technological foundation of Bitcoin
Building on the Bitcoin blockchain has never been more straightforward, mainly because of the adoption of numerous auxiliary platforms that seek to enhance the Bitcoin ecosystem’s general functionality and scalability. In one such approach, Stacks uses the proof-of-transfer consensus method to act as an independent Layer-1 blockchain connected directly to the Bitcoin base layer (PoX).
To give more specifics, the project relies on Bitcoin’s safe, open, and permissionless framework while enabling the latter to easily access a variety of cutting-edge technology advancements like non-fungible tokens (NFTs), decentralized finance (DeFi), and smart contracts. In essence, without altering the underlying layer of the Bitcoin network, apps may be built on top of it using Stacks.
Last but not least, the native ledger of Bitcoin is used to settle every transaction conducted through Stacks or one of its affiliated apps, ensuring utmost security.
Initiatives using Stacks
As was already mentioned, Stacks is being used by several apps to broaden Bitcoin’s existing use cases. A few instances of the same are given below:
The Zest Protocol is an on-chain Bitcoin capital market that enables liquidity providers to generate sustainable returns on their assets through expertly run loan pools. Zest provides undercollateralized, on-chain Bitcoin lending for institutional borrowers without the ongoing worry of liquidation.
Finally, in terms of technology, Zest uses Clarity Smart Contracts on the Stacks network, which can both start certain protocol activities and liquidate staked funds or collateral if a borrower misses a payment. Last, Zest uses Discrete Log Contracts (DLCs) with Taproot support to ensure that the BTC in its native pools is assured, transparent, and reliable.
The console is an open-source, crypto-native chat created exclusively for the Bitcoin (using Stacks) and Ethereum communities. The project aims to let Web3 communities establish themselves, develop over time, and flourish. As a result, it has a chat platform specifically made for decentralized organizations, making it somewhat comparable to Discord but for the global Web3 economy.
Arkadio is an open source, non-custodial liquidity protocol focused on Bitcoin and enabled owners of the leading digital asset to access the Decentralized Finance (DeFi) market easily. Due to its unique configuration, users can boost their liquidity through a soft-pegged US Dollar stablecoin while preserving significant exposure to the original asset. To elaborate, it can be applied to earning returns on one’s deposited and loaned assets and minting stablecoins (USDA).