In the wake of 2024, Cointelegraph’s podcast, Hashing It Out, is turning its attention to the narratives that are expected to dominate the cryptocurrency conversation this year.
In the latest episode, Rich Rines, an early contributor to Core DAO, a layer-1 blockchain network that enables Ethereum Virtual Machine-compatible decentralized applications on top of Bitcoin’s governance, discusses the potential rise of BRC-20 tokens and the movement to develop utility and financial applications on the Bitcoin network (BTCFi) in 2024.
Rines explains why BRC-20 has a place in the Bitcoin ecosystem despite the ongoing ideological debates and technical criticisms. He also highlights how BRC-20 and BTCFi can create a sustainable economic environment on Bitcoin, drawing lessons from decentralized finance (DeFi) implementations on Ethereum and other layer-1 networks.
During the podcast, host Elisha Owusu Akyaw asks Rines if Bitcoin was considered boring before the introduction of BRC-20. Rines argues that Ordinals and BRC-20 have brought innovation and excitement to the Bitcoin ecosystem that was previously lacking.
He acknowledges that Bitcoin’s role as digital gold may seem boring to some, but it serves as an essential real-world use case that cannot be overlooked. For Rines, Bitcoin was not boring before BRC-20, but BRC-20 introduced a level of excitement that was previously absent.
Regarding the ongoing ideological debate around building utility on Bitcoin and Satoshi Nakamoto’s vision, Rines contends that Satoshi’s original vision was to create better money with Bitcoin (BTC). He adds that Bitcoin faces challenges in becoming the best form of money due to scalability issues that layer-2 networks could address.
These layer-2 networks provide an alternative space where the Bitcoin base layer remains untouched to protect the billions of dollars on the network, while layer-2s allow for experimentation and the development of new financial systems within the Bitcoin ecosystem.
Rines acknowledges the value of existing layer-1 networks like Ethereum and Solana, as well as the DeFi ecosystems built on them. However, he believes that the landscape could shift, and users may be drawn towards other ecosystems like layer-2s built on Bitcoin once their needs are met.
To listen to the full episode of Hashing It Out, visit Spotify, Apple Podcasts, or TuneIn. And don’t forget to explore Cointelegraph’s full lineup of other shows!
Please note that this article is for general informational purposes only and should not be considered legal or investment advice. The views, thoughts, and opinions expressed in this article are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.