In order to use bitcoin in a decentralized financial marketplace, it is necessary to convert the superior digital currency from an inactive asset into an active one. The problem is that many activists in the Bitcoin community do not consider things like WBTC to be bitcoin at all. The Bitcoin and Ethereum communities are very different from each other. That is to say, they have distinct approaches; Ethereum has developed a culture of product testing and experimentation ,but people in the Bitcoin community care about keeping their assets safe, and they have no interest in taking any risk.
Creating bitcoin on the Ethereum blockchain is one of Defi’s innovations that seeks to combine the two philosophies. Putting a valuable asset like Bitcoin in a smart contract is not pleasant for Bitcoin users at all. You need to think of safer and better ways to get Bitcoin into such a market.
Recognizing this opportunity and introducing Bitcoin to Defi will turn bitcoin into the king of the Chinese blockchain in the future. The Defi market is growing rapidly, and Bitcoin has the widest appeal in the crypto space. With the application of smart contracts, Bitcoin will take advantage of the huge market volume of this digital asset in a decentralized financial environment, which in turn will be revolutionary.
Use of bitcoin in the Defi space is in its early stage, and this is a process that has just begun. Bitcoin can be used in two ways in decentralized finance products. One way is to use a bitcoin presentation in another blockchain for example, the WBTC as an ERC20 token on the Ethereum blockchain. The second method is to use the smart contract of this environment directly on the Bitcoin blockchain, which is very difficult due to the limited scalability of bitcoin and its programming language. Recently, the demand for using Bitcoin in a decentralized financial environment has increased noticeably, and many suggest a number of unusual and perilous ways to use bitcoins in this environment.
Defi programs require logic on the smart contract chain, and many of these decentralized finance programs continue to operate in the Ethereum ecosystem today. Many successful projects have been conducted in this space with the support of Ethereum, including Uniswap, which has been in a turmoil recently. Today, there is a growing demand in the decentralized financial environment for the use of Bitcoin, and at least the initial use of this monarch is being readily perceived in this space. The truth is that it is very difficult to survive in this space without Bitcoin.