Decentralized finance (DeFi) can become unstoppable

One of the best-funded cryptocurrency companies in the world is preparing for a massive bull run of decentralized finance (DeFi), which according to her should come by the end of this year. What does DeFi look like?

The future of decentralized finance

In July of this year, the innovative company DG Lab showed its proposal to trade cryptocurrencies on the Bitcoin blockchain using the Lightning Network. The proposal shows Bitcoin as an asset itself, which will be enabled for a wider range of functions.

DG Lab conglomerate, which like Ethereum powerhouse ConsenSys includes both an investment arm and an adjacent software company, open-sourced its proposal for self-sovereign derivatives trading on the Bitcoin blockchain, using discreet log contracts (DLC). (The company is currently researching whether DLC can be integrated with the Lightning Network.)

These contracts turn bitcoin, the asset itself, into programmable money capable of a wider variety of functions. 

Thanks to DG Lab, Bitcoin will thus enter the ranks of decentralized finance together with other DeFi projects based on the Ethereum blockchain. Founded in 2015, DG Lab is currently the leading company working on DeFi for the world’s most important cryptocurrency.

DG Lab’s leading researcher, Ichiro Kuwahara, said of DeFi for Bitcoin in his recent work published on GitHub:

I’ve been working on a proposal to integrate DLC channels into the Lightning Network. We can establish many contracts without broadcasting transactions on the blockchain.

DLC could one day tap the Lightning Network to execute business logic without clogging up the base-layer blockchain. The hottest trend among Bitcoin veterans these days is imagining DeFi functionality applied to the bitcoin currency through such layers. There are many opinions on how to approach this opportunity, from DLC to soft forks.

Japanese bulls are getting ready

DG Lab received over $ 93 million in 2019 and, according to the latest information provided by the company in 2020, expects much higher funding and the opening of a new fund.

We have several startups that are working with DLC. For example, Suredbits is one of the key players in this field and we are working closely with them.We wanted to show what is possible using the Bitcoin protocol by using our peer-to-peer [P2P] derivatives.

Conclusion

It turns out here that the advocates of Ethereum DeFi offer a different interpretation of decentralized finance. Advocates of Bitcoin focus mainly on every user of the bitcoin network who can get involved in the operation of the network. In the near future, DeFi may become the new standard for most of the world.

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