Can bitcoin be valuable beyond being used as a currency? Can it have its “DeFi” effect like Proof of Stake blockchains? Is there a need for Bitcoin Finance (BiFi)? Maxim Orlovsky, the founder of Pandora Prime, explained the BiFi concept and its importance at the Bitcoin Amsterdam event.
The founder explained that the explosion of DeFi in 2021 was driven by real and legal use cases including trading, lending, NFTs, and DAOs. However, the development of DeFi shows that it needs bitcoin because DeFi lacks scalability, censorship resistance, the presence of real money like Bitcoin as opposed to altcoins, and the security of Proof of Work, he added.
The LNP/BP Project
The deficiencies of DeFi are what made us start the LNP/BP (Lightning Network Protocol/Bitcoin Protocol) ecosystem, Maxim revealed to the audience. The LNP/BP Association has its headquarters in Switzerland, where it is registered.
He explained further that the LNP/BP ecosystem consists of:
- RGB, which provides smart contracts, off-chain scalability, turing complete and privacy for applications to be built on the Bitcoin network and currently has three wallets, four exchanges, and two Dev kits.
- Bifrost, which supports taproot and schnorr, DAOs, and other BiFi activities.
- Storm protocol which permits messaging, storage, and data querying on the bitcoin and lightning network.
Maxim also mentioned that RGB-Wrapped Bitcoin, on-chain Bitcoin on the RGB network, and a bridge for stablecoins on the RGB network would be released soon. The stablecoins will be accessible via the Lightning Network.
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