DeFi on Bitcoin is possible with this new Layer 2: AMA with Mintlayer
Mintlayer, an open-source, Layer-2 solution for Bitcoin, has gotten the best from the Bitcoin (BTC) and Ethereum (ETH) ecosystems to make crypto operations efficient and secure. Its protocol allows batching transactions (even between different tokens), features a UTXO-based accounting system and uses Ethereum’s Access Control List for token security. By having complete support of Lightning Network, Mintlayer can scale its network assets limitlessly.
Users can directly exchange Bitcoin for tokenized assets via atomic swaps and transfer assets within the system with zero gas fees thanks to the dedicated Mintlayer wallet.
Its consensus mechanism, Dynamic Slot Allocation (DSA), is a variation of proof-of-stake but with a twist: Users don’t need to refer to external sources for time validation because every block anchors to a block on Bitcoin; and it has an integral checkpoint system that can be enabled by any network participant to prevent 51% attacks.
Mintalyer also incorporates Wasm, a general-purpose virtual machine that can compile from a wider range of programming languages. It’s a register-based machine and more flexible than EVM.
The Mintlayer protocol provides developers with multiple DeFi use cases, from building DEXs, marketplaces and lending platforms to token generation (utility, governance, security, etc.) and derivatives’ tokenization. For those who do not have software development experience, Mintlayer offers smart contract integrations in apps with zero coding.
To support new creative minds and projects that would like to contribute to DeFi on Bitcoin development, Mintlayer launched an ecosystem fund with an incubator, accelerator and grant programs.
The upcoming AMA will delve into the future of DeFi on Bitcoin.
Read more on cointelegraph.com
