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DeFi on the Bitcoin blockchain is already a reality

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Ethereum Q&A: DeFi Explained in Laymans Terms

DeFi on the Bitcoin blockchain is already a reality

DeFi on the Bitcoin blockchain is already a reality
CONTENT

  • Bitcoin Blockchain Will Serve DeFi Smart Contracts

  • Fast and efficient payments on the Bitcoin blockchain are already a reality

  • The efficiency of payments does not depend on the volatility of the cryptocurrency market

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The DeFi (decentralized finance) market is growing rapidly. Already today, users have access to loans and borrowings in cryptocurrencies secured by DAO and some other tokens. More recently, well-known American investor, cryptanalyst and bitcoin enthusiast Tim Draper said that he sees the huge potential of the DeFi marketDecentralized finance (DeFi) is a financial services built on the basis of blockchain technology that offer users access to an open, efficient and … More and is ready to invest in DeFi Money Markets DAO (DMM DAO).

DeFi on the Bitcoin blockchain is already a reality

Until recently, the smart protocols that power the DeFi market were primarily built on the Ethereum blockchain. Hundreds of smart contracts and applications were created on this blockchain, and the amount of funds circulating in the DeFi network totaled millions of dollars. Experts predicted Ethereum’s key role in the decentralized finance market. Especially bright prospects were promised after the launch of Ethereum 2.0.

The Bitcoin blockchain has also joined the DeFi market. So, recently, a new Money On Chain protocol was launched, created on the Bitcoin blockchain. The development is based on RSK technology, which is a smart contract platform compatible with Ethereum standards and secured by bitcoin fusion. In fact, this is a mix of two blockchains at once – Bitcoin and Ethereum. For example, from Ethereum, the technology received features such as account format, VM and Web3 interface. To circulate bitcoins within the network, RSK has a two-way peg to bitcoins. In practice, it looks like this. When a user transfers bitcoins to the RSK platform, they become “smart bitcoins” (ticker RBTC1). Smart bitcoins are equivalent to bitcoins operating on the RSK blockchain and can be converted back to bitcoins at any time at no additional cost, except for standard transaction fees in RSK and Bitcoin.

Inside the Money On Chain (MOC) protocol, two main tokens will be used: DOC and BPRO.

Dollar on Chain (DOC) is a stable token As the use of cryptocurrencies grows, new types of tokens are emerging. They can represent value or something intangible like voices. Two … More, which will be pegged to the USD with a value of USD 1 per DOC.

BPRO is a token for bitcoin holders that will absorb the unwanted bitcoin risk from DOC. Some of this will be transferred to the leveraged bitcoin exchange, which will give BPRO holders passive income..

The MOC will have three functions:

DeFi on the Bitcoin blockchain is already a reality
  1. MOC holders receive a discount when paying platform fees using MOC.
  2. MOC holders will have the right to vote and veto platform updates.
  3. MOC is used as an incentive for those using MOC nodes and as an incentive for BitPro owners.

In fact, Money On Chain will provide users with fast and cheap cryptocurrency money transfers that do not depend on the current volatility of the cryptocurrency market..

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