The founder of Cardano, Charles Hoskinson, explained how the Cardano network could play a role in Bitcoin Defi, unlocking 2 billions of dollars of active ingredients.
Hoskinson underlined it during a conversation On the podcast Mr. Mr, in which he appeared alongside the adopter of early Bitcoin Davinci Jeremie. The founder of Cardano explained how Bitcoin holders could access decentralized financing opportunities without leaving the Bitcoin ecosystem.
Cardano presents a solution for Bitcoin Defi
Hoskinson noted that Bitcoin Defi could become a major sector. “So Bitcoin Defi will be a huge category because it’s like 2 billions of dollars of active ingredients to wake up”, ” The founder of Cardano pointed out.
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He stressed that the large Bitcoin market value is currently lacking total locked value (TVL) in DEFI applications. According to him, Bitcoin holders want performance and new financial tools. Interestingly, Cardano’s infrastructure presents a solution, in particular thanks to the costs of Babel.
For the context, Babel costs allow users to pay transaction fees using native assets instead of ADA. If Bitcoin is wrapped on Cardano, users can pay costs in Bitcoin rather than needing ADA, making the experience transparent.
He compared this process to the use of a credit card abroad, where transactions occur in a currency but are settled in another.
Midnight can help
In addition, Hoskinson stressed that Bitcoin Defi and the midnight project are both launched this year. He had previously suggested This night would make Cardano Multichain. According to him, innovation would increase the volume of transactions and user engagement.
As a result, more projects can integrate into Cardano. He compared the landscape of current blockchain to the islands, suggesting that an increased interoperability will transform these isolated ecosystems into a more connected environment, similar to the connection of Florida with the continent.
“You know, we have a dedicated group of people that that’s all they do for these types of integration so that, you know, the island’s stuff will disappear. It will become more like Florida. And it is now linked to a larger set and more and more people will enter, ” The founder of Cardano said.
Hoskinson: Cardano borrows bitcoin
Meanwhile, Hoskinson also stressed that Cardano borrows several Bitcoin principles. These include deflationary monetary policiesA fixed supply, the UTXO transaction model and elements of proof of starting that resemble the mechanism of proof of work of Bitcoin.
With the Cardano network incorporating these principles, it seems to provide a familiar but improved experience to users of Bitcoin Entering DEFI.
Meanwhile, Hoskinson also underlined the broader vision of the role of Cardano in the adoption of the blockchain. So that the network is thrriVE, it must attract more daily and monthly active users, increase the volume of transactions and gain the confidence of regulatory organizations.
He believes that, as Cardano develops on niche markets like Bitcoin Defi, industry leaders such as Metamask will look for integration opportunities. This, in turn, could lead exponential growth In TVL, user activity and the volume of transactions over the next two to three years.
Hoskinson predicted: “I think that probably within 24, 36 months following, we will continue to see exponential improvements in TVL, in the number of transactions, the number of transactions.”
Difles: This content is informative and should not be considered financial advice. The opinions expressed in this article may include the author’s personal opinions and do not reflect the basic opinion of cryptography. Readers are encouraged to do in -depth research before making investment decisions. The Crypto Basic is not responsible for financial losses.
