Bitcoin-based DeFi: The budding ecosystem has begun to make its mark

The Decentralized Finance (DeFi) space is a budding ecosystem that came to life after Ethereum introduced smart contracts to blockchain technology in 2017. Since then, investment into DeFi and the development of Decentralized Applications (DApps) have blossomed this space into a multi-billion dollar sphere.

While this field is on an upward trend, the inclusion of Bitcoin into its integral infrastructure could further push the DApps industry into a position of global intribute and investment.

DeFi Before It Reached Bitcoin

The emergence and rise of chains such as Cardano, Solana, Avalanche, etc., diversified both investment and development options. While there was once only a singular option for building a DeFi application, the development of these other ecosystems has opened up the space significantly.

Yet, Bitcoin, the market leader for cryptocurrency, was commonly lagging behind its counterpart cryptos in terms of DeFi building opportunities. Bitcoin lacked the developer tool kit, transaction speeds, and usability to make it a viable option for building DeFi applications. Despite other achievements and legacy value, Bitcoin is seen only as "peer-to-peer" money.

Statistics like these demonstrate how other blockchains are failing to compete with Etheruem in this manner.

Until The Arrival of DeFiChain

DeFiChain is a decentralized blockchain platform, created to support layer one ecosystems like Bitcoin in their efforts to become more hospitable to DeFi applications. By utilizing Proof of Stake as its consensus mechanism, while leveraging Bitcoin’s own security, it provides a comprehensive environment for developers to turn to.

While Bitcoin has always been criticized as slow and ineffective for building, the introduction of DeFiChain into the system allows for faster transactions, low gas fees, and secure smart contracts.

Blockchains like DeFiChain are enabling developers to build a wide range of dApps, and given that Bitcoin remains the first choice for both individual and institutional investors, the DeFi ecosystem will demonstrate to them all that they can do rather than just HODLing.

Alongside its integration into Bitcoin, DeFiChain is known for providing dTokens of assets listed on traditional stock markets across the world. These dTokens mimic the prices of the stocks and can be used to gain price exposure to the underlying stocks, ETFs, and other assets. This allows users to wager on the prices of their favorite stocks, all while remaining in a decentralized ecosystem where they have full control of their finances.

As a comprehensive system that capitalizes on the inherent security of Bitcoin while also bringing its own range of offerings to the table, it’s no wonder that DeFiChain is getting so much attention. With the positive sentiment around its development, and all it can do, we won’t be surprised if we see Bitcoin rapidly become a primary contender in the DeFi space.