BTCFi: Unlocking the Innovative Journey of Bitcoin's Trillion Market Capitalization
Summary
Background of the rise of BTCFi: The narrative of Ethereum and its competing public chains has weakened, infrastructure has become saturated, and the industry lacks fresh concepts; in contrast, the BTC ecosystem has not yet formed a comprehensive monopoly.
The main scaling solutions for BTC include state channels, sidechains, Rollups, UTXO + client validation, and large blocks, but each solution must meet the technical requirements of "consensus" verification.
Key conditions for the development of BTCFi: cross-chain interoperability, layer two scaling solutions, smart contract functionality, complete infrastructure, and development tools.
The main challenges faced by BTCFi are: limitations of the Bitcoin protocol, insufficient liquidity, security issues with cross-chain bridges, difficulty in precise pricing by oracles, and the need to explore a unique development path.
1. Overview of BTCFi
1.1 Definition of BTCFi
BTCFi aims to Bit