Smart Contracts Have Arrived on the Bitcoin Blockchain – Will BTC Become a DeFi Powerhouse?
A new era has begun for the Bitcoin blockchain.
Last week, a group of developers deployed a suite of Uniswap smart contracts directly onto the Bitcoin blockchain.
Uniswap is a decentralized cryptocurrency exchange (DEX) that operates on multiple smart contract-enabled blockchains like Ethereum and Polygon and operates based on automated market maker (AMM) smart contracts.
The new Bitcoin-based DEX, called Trustless Market, allows its users to swap so-called “Smart BRC-20 tokens”, provide liquidity and earn a 2% transaction fee and issue new Smart BRC-20 tokens, according to @punk3700, one of the developers behind the DEX. ‘
BRC-20 is a new Bitcoin-based token standard that allows users to write information into each Satoshi, which is the smallest unit of denomination of BTC – there are 21 million Satoshi’s per Bitcoin.
According to Trustless Market’s website, “Smart BRC-20s are the first smart contracts deployed on Bitcoin”.
“They run exactly as programmed without any possibility of fraud, third-party interference, or censorship,” the protocol added, saying they can be issued for “virtually anything: a cryptocurrency, a share in a company, voting rights in a DAO, and more”.
“DeFi is coming to @Bitcoin… And we couldn't be more excited to be part of the movement,” @punk3700 said.
The deployment of AMM smart contracts on Bitcoin marks its official emergence as a smart chain, whether its creators and strongest proponents intended for it to be used as such.
Prior to the arrival of the Ordinals protocol late last year, which introduced text and image-based inscriptions to the Bitcoin blockchain, the BRC-20 token standard in March and now smart contracts, Bitcoin’s use in decentralized finance (DeFi) had been limited.
Tokenized versions
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