Bitcoin, the original cryptocurrency, has seen tremendous growth over the past decade and a half, now boasting a market cap of ~$1.2 trillion. However, despite its broad retail and institutional adoption, the network remains underutilized due to its deliberate limitations prioritizing security and decentralization.
Due to its rigid focus on protecting the key characteristics of the Bitcoin asset, such as its finite supply, the Bitcoin network has historically enjoyed no native yield, complex dapps, or efficient financial rails. Its 1MB block size is great for security but severely limiting for nearly everything else. The same is true regarding its throughput of 5-7 transactions per second. However, the most critical issue is Bitcoin’s lack of programmable financial rails for its otherwise programmable monetary asset.
Given Bitcoin’s purposeful limitations, the network’s untapped potential has inspired supporters to invent unique ways to scale Bitcoin without changing Bitcoin’s nature.
Amid growing interest in extending Bitcoin’s security, tapping into Bitcoin’s value, and unlocking Bitcoin-specialized dapps, Core (CORE) has emerged as a leading and influential project. It is pioneering Bitcoin DeFi (BTCfi) in many ways including delivering Bitcoin-native yield and hosting a Bitcoin-secured smart contract platform.
The Core network is a Bitcoin-aligned layer one blockchain compatible with the Ethereum Virtual Machine (EVM). As a Bitcoin-powered scalable smart contract platform, the Core blockchain enables Bitcoin miners and Bitcoin holders to participate in its security in exchange for earning CORE token rewards.
This is all made possible through Core blockchain’s unique Satoshi Plus consensus mechanism, which combines Delegated Proof of Work (DPoW), Delegated Proof of Stake (DPoS), and Non-Custodial Bitcoin Staking.
Delegated Proof of Work enables Bitcoin miners to expand their security coverage to a neighboring blockchain. That neighboring chain, Core, then provides miners with what is effectively a second block reward, thus reinforcing the Bitcoin network’s security by incentivizing miners to secure both Bitcoin and Core. Importantly, these rewards come at no additional cost to miners, as the process for their participation in Core’s security involves no new energy expenditure. To receive rewards from Core, miners go through their normal Bitcoin-securing processes and then delegate that existing hash power to vote for Core validators. In sum, Core receives Bitcoin miner protection, and Bitcoin receives more highly incentivized miners. It’s a win-win.
In addition to involving Bitcoin miners via DPoW, Satoshi Plus also involves Bitcoin holders through Non-Custodial BTC Staking. Core’s Bitcoin staking mechanism is the first live product of its kind, enabling Bitcoin holders to earn a yield on their Bitcoin without giving up custody for the first time ever. As a result of this yield opportunity involving no new trust assumptions, Core’s Bitcoin staking is setting the ‘Bitcoin Risk-Free Rate.’ Whenever any financial opportunities are considered in the world of Bitcoin, they now must be decided upon in relation to Core’s risk-free staking rate. Furthermore, as Bitcoin is staked with Core, the protocol gains security as both Bitcoin miners and Bitcoin holders come aboard.
Complementing the Bitcoin stakeholders’ involvement in Satoshi Plus, Delegated Proof of Stake involves Core’s users through CORE token staking. Just as Bitcoin stakers stake their Bitcoin, Core users can stake their CORE tokens. Combined, this tripartite consensus mechanism serves to secure Core in a way that symbiotically binds Core and Bitcoin together.
Transforming Bitcoin with Core: A New Era of Finance
Since its January 2023 mainnet launch, the Core network is off to a strong start with 100+ dapps, 19M+ total addresses, and 272M+ total transactions. Even more important is that ~55% of Bitcoin’s hash rate is contributing to the blockchain’s security. Additionally, over 5k Bitcoin has been staked with Core, driving hundreds of millions of dollars in value to securing Core and earning the ‘Bitcoin Risk-Free Rate.’
Prior to Core, Bitcoin had largely played a passive role, but it is now finally being transformed into a much more active center of the blockchain space. With Core, Bitcoin becomes crypto’s primary security provider and a destination for earning native yield.
This is the starting point, but the vision behind Core is even greater. As hash power and bitcoin continue to secure the Core network, it continues to grow into the perfect platform to host all of Bitcoin DeFi (BTCfi). Bitcoin financial activity can grow on Core’s scalable rails without relying too heavily on Bitcoin or abandoning Bitcoin’s secure design. The next big DeFi movement is happening on Core.