Bitcoin (BTC), the original cryptocurrency with the largest market cap, continues to lead the crypto market — to both the green and red. Even though the crypto space gave birth to quite a few projects, the rest of the herd is no match for the brainchild of Satoshi Nakamoto for financial transactions.
The unique unspent transaction output (UTXO) model used for the Bitcoin blockchain enables BTC to act much like a paper currency, resulting in superior security and robustness as a peer-to-peer currency. Especially compared to the bank-account-like model that Ethereum-based DeFi solutions typically adopt. As the pioneering cryptocurrency, Bitcoin presents massive liquidity, but Ethereum-based DeFi solutions have yet to develop a secure and effective way to tap into that.
With the introduction of the Taproot upgrade, which enabled the implementation of smart contracts, DeFi found its route to the Bitcoin base layer for the first time. However, it started on the wrong foot: As the Taproot upgrade allowed people to bypass the initial 80-byte limit on the Bitcoin blockchain, people wasted no time in uploading all sorts of digital properties, including images, NFT-like inscribed assets and more, clogging up the base layer with unnecessary digital junk and possibly making Satoshi Nakamoto cringe.
Bitcoin needs its own layer-2 DeFi ecosystem that expands the use of BTC putting no additional pressure on the base layer, and that’s where Mintlayer comes in. Mintlayer is an L2 solution rooted in the established network of the Bitcoin blockchain. Similar to how the Lightning Network solved Bitcoin payments at scale, Mintlayer is poised to bring decentralized finance to Bitcoin’s toolkit, without compromising the Bitcoin community’sRead more on cointelegraph.com