Bitcoin Season 2: Why the next wave of Bitcoin innovation is all about utility

Bitcoin’s (BTC) adjacent improvement isn’t conscionable astir price. It’s astir potential. 

On this week’s occurrence of The Clear Crypto Podcast, hosts Nathan Jeffay and Gareth Jenkinson beryllium down with Isabel Foxen Duke, wide spouse astatine Unbroken Chain and longtime Bitcoin advocate, to unpack what she calls “Bitcoin Season 2.”

Bitcoin beyond money

“Bitcoin Season 2 is truly astir seeing what we tin bash with Bitcoin extracurricular of conscionable being money,” said Duke.

“What are the wide scope of fiscal usage cases for [Bitcoin] different than conscionable being wealth by itself?”

New developments similar ordinals, runes, and decentralized fiscal (DeFi) tools are pushing Bitcoin beyond its accepted individuality arsenic a integer store of value.

One cardinal innovation nether treatment is trustless lending — allowing users to get against their Bitcoin without involving third-party intermediaries. “We don’t person the quality to lend against our Bitcoin successful a trustless mode without third-party intermediaries,” Duke said.

“I would reason that is the 2nd astir important and 2nd astir utilized usage lawsuit successful the existent satellite different than making payments.”

Lending connected Bitcoin

One emerging solution involves Discreet Log Contracts (DLCs), which fto users support power of their Bitcoin portion locking it arsenic collateral. Smart declaration logic enforces repayment, not a cardinal authority. “That’s proven by mathematics alternatively than trust,” Duke said.

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Duke said she is arsenic excited astir trustless bridging, which could let Bitcoin to interact with outer computation platforms without compromising its decentralized ethos. 

“If you could usage Bitcoin not conscionable arsenic wealth but arsenic a basal plus that tin trustlessly plug into immoderate fiscal system, that would be… the extremity of the roadworthy for this asset.”

Looking ahead, Jenkinson highlighted however Bitcoin-native DeFi could unlock real-world fiscal entree for radical excluded from accepted banking. “A fewer small changes to immoderate lines of codification mightiness conscionable unlock [permissionless finance] for each of us,” helium said. “And that’s the benignant of aboriginal I’m hopeful about.”

To perceive the afloat speech connected The Clear Crypto Podcast,  perceive to the afloat occurrence connected Cointelegraph’s Podcasts page, Apple Podcasts oregon Spotify. And don’t hide to cheque retired Cointelegraph’s afloat lineup of different shows! 

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