- DeFi and Bitcoin can finally come together, thanks to RSK.
- Bitcoin is considered the crown jewel of cryptocurrency, so it is essential for DeFi’s wonders to be fully felt via it.
- The RSK based ‘Money on Chain’ protocol is servicing a need for DeFi and Bitcoin.
DeFi and Bitcoin can finally merge
The RSK based ‘Money on Chain’ protocol is servicing a need for DeFi and Bitcoin. The wonders of RSK, a smart contract protocol launched in 2016, and it has become a key player in ensuring Bitcoin can have DeFi.
RSK is an online place for developers to create whatever they want with code. They have a virtual machine that is based on Bitcoin.
RSK smart contracts can use RSK’s virtual machine without any risks. Currently, Bitcoin users could not wrap their coin so that it could be used on a different chain and use their capital in a reliable decentralized way.
Decentralized finance needs to operate on Bitcoin because it is said to be the coin that could replace reserve currency. Decentralized finance is so important because people are seeing the value of earning yields on their capital. In the past, decentralized finances managed to gather $12 billion worth of deposits.
Innovators have sought opportunities to use smart contracts to make financial applications and diversify the use of crypto.
The original decentralized finance came from Anthony Pompliano. The DeFi industry has become a significant player in the crypto industry, mainly because of its ability to operate on Ethereum.
Before RSK’s discovery, decentralized finance could not function on Bitcoin, which was having a dampening effect on the industry’s success.