- The BRC-20 fork will map each token to a new BRC-100 token, ensuring users receive equivalent assets post-fork.
- Mikael.btc aims to overcome BRC-20’s limitations by integrating DeFi capabilities directly into the Bitcoin network.
- The BRC-100 protocol will support various DeFi applications, including DEXs, stablecoins, and lending, expanding Bitcoin’s utility.
A blockchain developer, Mikael.btc, renowned for creating the BRC-100 token standard, has announced plans to fork the existing BRC-20 protocol. This move is designed to introduce decentralized finance (DeFi) capabilities to the Bitcoin network.
The planned fork, set to occur on September 2, aims to overcome the limitations of BRC-20, such as lack of programmability and scalability issues, and integrate DeFi infrastructure directly onto Bitcoin.
Bringing DeFi to Bitcoin
Mikael.btc outlined the new protocol’s approach, leveraging technologies like Inscriptions and OP_RETURN to enhance Bitcoin’s functionality. The upgrade will allow Bitcoin users to engage in decentralized finance activities, expanding the cryptocurrency’s capabilities beyond simple transactions.
By mapping each BRC-20 token to a corresponding BRC-100 token, the developer ensures that current BRC-20 holders will automatically receive equivalent assets on the new protocol, mirroring their original holdings.
In his August 9 post on X, Mikael.btc emphasized that the fork would preserve the same ticker and supply for each token, ensuring a smooth transition for users. However, holders of BRC-20 tokens on centralized exchanges will need to wait for these platforms to distribute the new tokens.
The BRC-100 protocol is expected to enable a range of DeFi applications, including decentralized exchanges (DEX), stablecoins, and lending platforms, ushering in a new era of decentralized finance on Bitcoin.
A Growing Push for Bitcoin-Based DeFi
The move towards DeFi on the Bitcoin network has been gaining traction, particularly following a report from Pantera Capital projecting that Bitcoin’s DeFi ecosystem could attract significant liquidity.
The fork of BRC-20 is positioned as a critical step in Bitcoin’s evolution, aiming to match the DeFi capabilities currently seen on Ethereum. As the September 2 launch date approaches, the Bitcoin community is poised to witness a significant expansion in the network’s use cases, potentially drawing in new participants eager to explore Bitcoin-based DeFi opportunities.
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