In the context of decentralized finance (DeFi), Bitcoin has often been seen as a dominant yet underutilized asset due to its lack of integration with DeFi platforms.
Traditionally, Bitcoin's involvement in DeFi has been limited by several factors:
- ๐ช๐ฟ๐ฎ๐ฝ๐ฝ๐ฒ๐ฑ ๐๐๐๐ฒ๐๐: Bitcoin is typically converted into wrapped versions (e.g., WBTC) to be used in DeFi, which introduces additional layers of trust and complexity.
- ๐๐๐๐๐ผ๐ฑ๐ถ๐ฎ๐ป๐: Centralized entities often hold the actual Bitcoin, requiring users to trust these intermediaries.
- ๐๐ฟ๐ถ๐ฑ๐ด๐ฒ๐: Cross-chain bridges are used to transfer Bitcoin to other blockchain networks, adding potential points of failure and security risks.
- ๐ ๐๐น๐๐ถ๐๐ถ๐ด๐: Multi-signature setups are employed to enhance security but can complicate the user experience and introduce dependency on multiple parties.
- ๐จ๐ฝ๐ด๐ฟ๐ฎ๐ฑ๐ฒ๐ฎ๐ฏ๐น๐ฒ ๐๐ผ๐ป๐๐ฟ๐ฎ๐ฐ๐๐: These contracts, while flexible, can be a source of vulnerability if not managed properly.
@PortaltoBitcoin integrates with protocols like Babylon Genesis to enable trustless Bitcoin staking, allowing native BTC to secure proof-of-stake validators without intermediaries therefore getting rid of all the above stated problems.
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