Charles Hoskinson Envisions DeFi-Enabled Bitcoin Ecosystem Powered by Cardano

Charles Hoskinson, the founder of the Cardano blockchain, has revealed plans to build an ecosystem of hybrid applications powered by Bitcoin, with a DeFi layer integrated into the leading cryptocurrency.

Hoskinson shared his renewed interest in Bitcoin’s foundational code, aiming to restore its innovation by adding a DeFi layer on top.

Hoskinson outlined his vision of creating an ecosystem where Bitcoin users could seamlessly engage with decentralized applications. He emphasized that the goal is to make Bitcoin the key asset needed to access these functionalities. The integration would be facilitated by Cardano’s Babel fee mechanism, which allows users to pay transaction fees with assets other than ADA, promoting better interoperability.

This initiative builds upon Cardano’s recent integration with Bitcoin, notably through the BitcoinOS Grail Bridge, which connects the two networks and brings decentralized programmability to Bitcoin. The Grail Bridge is designed to enhance liquidity and address infrastructure gaps, making DeFi activities possible on Bitcoin.

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Hoskinson’s announcement comes as Cardano experiences a surge in on-chain activity, with retail interest growing alongside Bitcoin’s price rally towards the $100,000 mark. As a result, the ADA token recently surged above $1, reaching its highest value since April 2022 and significantly increasing its market capitalization.

Kosta Gushterov