BTC-Fi: Outstanding Potential Projects That Get Little Attention
- Ordinals is a method of getting NFT into the Bitcoin chain, it’s been going on for a few weeks, and Bitcoin Punks are by far the most popular.
- eBTC is intended to be the most decentralized synthetic Bitcoin in DeFi, allowing anybody on the globe to borrow BTC for free.
- If REN focuses on Bitcoin’s hierarchical network, new growth opportunities will arise.
- ZeroDAO is developing from scratch and will go live soon.
BTC-Fi is a fairly new concept to us. With its development, the value of Bitcoin will likely increase, and projects will increasingly attract the community. Let’s take a look at this development with Coincu.
Ordinal Inscriptions, like NFTs, are digital assets inscribed on a satoshi, Bitcoin’s lowest denomination (BTC). Inscribing on satoshis, which are named after Bitcoin’s pseudonymous founder, Satoshi Nakamoto, is now feasible owing to the Taproot update, which was published on the Bitcoin network on November 14, 2021.
Ordinals are the foundation of everything. Ordinals are a method of putting NFTs on the Bitcoin chain. This phenomenon has been going on for a few weeks, and Bitcoin Punks is now the most popular.
The initial step in creating Ordinals is for users to download Bitcoin Core and sync the node with the blockchain. Following the completion of the sync, the next step is to create an Ordinals wallet and send some satoshis to the wallet.
To get the NFT on the Bitcoin chain, you must go OTC (over the counter) on Discord. This is a difficult process since you cannot spend the Satoshi containing the NFT art, or it will be lost forever. There is now a market on the Bitcoin chain where users may freely exchange NFTs.
NFT on the Bitcoin chain is quite popular. Many funds want access to it, and its popularity is only going to expand. Even Yuga Labs revealed that an Ordinal collection would be released.
The race is on to offer more seamless means of purchasing Bitcoin and wallets that allow you to examine the Bitcoin NFT after it has been produced.
Gamma, a Bitcoin NFT marketplace on Stacks, is offering a premium service that allows users to inscribe pictures and text in order to create a smooth manner for collectors to make Ordinal Inscriptions. Oridalsbot, from the developers of the Satoshibles NFT collection, is another project that provides similar function.
Many are paying attention to STX since these Ordinals initiate new innovations within Bitcoin. STX is controlled since it is meant to be a network layer for Bitcoin.
The STX price immediately rose, and the Bitcoin layer story was established. Because STX is not a “real” Layer 2 network, a lot of people are discussing it technically. Yet, according to their documentation, they are creating a new product called sBTC and have a matching market. Until sBTC is operational, STX may credibly claim to be the Layer 2 Bitcoin network.
Last week, Badger announced the launch of an LSD-backed Bitcoin through Spadaboom.
eBTC is a collateralized crypto currency based on the Ethereum network that is soft tied to the price of Bitcoin. It is backed only by Liquid Staked ETH (LSD) and driven by immutable smart contracts with no dependency on a counterparty. It is intended to be the most decentralized synthetic Bitcoin in DeFi, allowing anybody in the globe to borrow BTC for free.
It seems that the market doesn’t really care about it, as the majority of people don’t fully understand the future BTC-Fi story. eBTC will be the name given to Bitcoin (synth) backed by LSD. It is denominated in Bitcoin and is backed by liquid-collateralized Ethereum.
Like DAI, it is backed by a large number of assets, but it is a stable currency based on US dollars.
The Bitcoin Network and Ren
Ren Protocol (formerly Republic Protocol) was developed in 2017 and initially focused on trustless OTC trades. OTC brothers can simply understand P2P transactions and will not affect the market price of the token being traded.
However, then Ren Protocol carried out Rebrand and got the name it has today and the goal is to focus on developing Interoperability or interoperability, a platform that allows you to trade tokens between different blockchains securely. trustless and decentralized.
The project launched the Mainnet in May 2020 and allowed the conversion of BTC, Bitcoin Cash, and Zcash to the ERC 20 network through the Wrapped and Ren Virtual Machine (RenVM) mechanism.
RenVM is a network powered by decentralized virtual machines. These virtual machines are called Darknodes, and they work together to provide power, contribute bandwidth, and make the network more secure.
Darknodes will receive a portion of the trading volume of tokens on the Ren Protocol platform.
REN is the third intriguing location. Ren is an original DeFi protocol that has been in operation since 2017.
Binance CEO Changpeng Zhao (CZ) understands that BTC-Fi will be a future story. CZ isn’t CZ until he explores the story in order to get traffic exposure to that narrative.
Because of the incidents between Alameda and FTX, REN technology has essentially failed. If the takeover is actual, I wouldn’t be shocked. REN has never been successfully hacked and has always been dependable. If REN concentrates on Bitcoin’s hierarchical network, new prospects for growth will emerge.
Several large whales appear to be accumulating at the bottom, pushing the REN price up to around 15 cents on Binance.
Because on-chain liquidity is weak, the majority of liquidity is on controlled exchanges. If the claims are genuine, REN will have little trouble attaining a market valuation of 100 million and 0 unlocks as a Binance-backed Bitcoin layer.
Basically, ZeroDAO is a messaging protocol that connects Bitcoin/Zcash and Ethereum assets.
In order to merge the Ethereum ecosystem with the Bitcoin layer, you will need a proper way to send your assets from Bitcoin <> Ethereum. ZeroDAO used to be based on Ren technology.
Now that Ren has shut down their service, ZeroDAO is developing from scratch and will go live soon (layer zero networks).
ZeroDAO doesn’t have any tokens. There will be a way to get characters in their Discord, which will give potential incentives on ZeroDAO. You can help them with community work to introduce them to the BTC-Fi narrative.
All in all, a lot of things are being built with BTC-Fi. Like it or not, it’s happening. This can open up opportunities for us if we pay attention to these projects.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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