news4global
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    Emergency – 100X Crypto coin just abi – jaldi karo #bitcoin #cryptocurrency

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

No Result
View All Result
news4global
No Result
View All Result
Home Bitcoin

Why Startups Are Front on Bitcoin Base Layer for Building the New Age of dApps?

July 4, 2022
Reading Time: 5 mins read
0
Why Startups Are Front on Bitcoin Base Layer for Building the New Age of dApps?
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

XRP Price and Network Activity Skyrocket 2,600% as Hinman … – Crypto News Flash

May 31, 2023
Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Wall Street gives crypto a chance – Financial Times

May 31, 2023

It’s no secret that dApps and Blockchain-oriented businesses have taken the world by storm these past few years. However, Ethereum, Solana, and the like have started to crop up issues. These Blockchains have been facing issues with security and uptime while being overwhelmed with the number of their users.

When startups look for a base layer Blockchain to build upon, they look for a secure, reliable foundation. This means a strong proofing algorithm and uptime as close to 100%. A recent report by Trust Machines, one of the most promising startups in the space, shows that Bitcoin might be just what they’re looking for.

What Is a Base-Layer Protocol, and Why Is It Important?

The Base layer or layer 1 Blockchain is a Blockchain like Bitcoin, Ethereum, or Solana and their underlying infrastructure. These layer 1 Blockchains can validate and finalize Blockchain transactions without needing another network. Layer 2 protocols, on the other hand, are generally more scalable but rely on another network for security and a consensus protocol. These are your Polygons, your Arbitums, your xDai Chains.

Layer 2 chains are used because they aren’t as restrictive in building complex applications and generally have a higher capacity for scaling than their layer 1 counterparts. Similarly, due to Bitcoin’s large transaction times, you’re unlikely to be able to build a satisfying game directly on top of it. However, the layer 2 chain does open additional avenues for threats to waltz through, making the layer’s security even more important.

A high-quality layer 1 chain is necessary for most applications is the need for a secure and reliable way to validate and finalize transactions. If a layer 1 chain can be attacked or brought down, all the layer 2 chains relying on it will fall together. This, in turn, means all applications relying on those chains will experience difficulties.

Bitcoin, in particular, stands out here, as its base protocol takes weeks, months, or sometimes even years to go from proposal to implementation. That is because the community has a long, rigorous discussion process every time a proposal is made. They ensure the changes would be safe and that they align with the chain’s core values.

Why Weren’t Applications Built on Bitcoin Already?

So, if Bitcoin is so secure and reliable, why didn’t we now see an onslaught of apps built on Bitcoin? Unlike Ethereum, Solana, or Cardano, Bitcoin was never made to host apps on its base layer. Bitcoin was supposed to be a censorship-resistant, P2P means of settling payments.

Bitcoin uses a simple, Turing incomplete architecture. The Turing incompleteness of Bitcoin makes it a simpler architecture and helps it decrease its complexity and number of vulnerabilities. This makes it a fairly cumbersome system to build applications upon. 

Another issue of Bitcoin is its base layer’s low throughput. Although Bitcoin’s PoW (Proof-of-work) consensus mechanism ensures the security, decentralization, and immutability of each transaction, it also heavily impedes the number of transactions that can happen each second. Today, Bitcoin processes 5-7 transactions a second, far lower than most layer 1 chains.

How Bitcoin-Based Apps Are Rising Despite the Challenges?

The same report released by Trust Machines shows that a massive amount of BTC is being transported to ETH for use in dApps through bridges. This greatly exceeds the BTC transported through lightning networks over a similar time period. Since bridges introduce an additional layer of insecurity and risk, that shows a certain degree of demand for Bitcoin-native applications among Blockchain users.

Some of these applications (at least the simpler ones that can function in a touring-incomplete environment) will be built directly on the Bitcoin base layer. This is especially likely for finance-oriented apps, which will benefit greatly from Bitcoin’s $575 billion market cap and massive liquidity.

However, most apps will use layer 2 protocols on top of Bitcoin, such as Lightning Network or Liquid. These protocols all address certain problems within Bitcoin, whether it be the difficulty of programming applications or the low throughput. Some more unique solutions, such as Stacks, don’t link to Bitcoin as a traditional layer 2 protocol.

Stacks is a layer 1 protocol connected to Bitcoin through its consensus mechanism – proof of transfer. This enables Stacks to utilize Bitcoin’s base layers to their fullest while providing DeFi applications, smart contracts, and even NFTs to its userbase.

This is extremely exciting, especially with firms like Trust Machines working on creating tools to make developing smart contracts easier using Stacks. This will allow developers to have an easier time developing apps on Bitcoin and will, in turn, drive in more users.

Why Startups Are Flocking to Bitcoin?

With layer 2 solutions, Stacks, and the like doing a great deal to resolve Bitcoin’s major issues, the question of what makes Bitcoin so valuable to build on remains open. We touched a little on this when talking about base layer protocols, but Bitcoin is incredibly secure and reliable. This means attacks like those that happened to Ethereum are nigh-impossible, and massive downtimes like the ones experienced by Solana are also incredibly unlikely.

This makes apps built on Bitcoin inherently more stable and trustworthy – two extremely important assets to have, especially with dealing with users that have vested a large amount of their wealth into Bitcoin.

On that topic, since Bitcoin is the most popular cryptocurrency with the highest market capitalization, users are more likely to have Bitcoin already around to spend on dApps and smart contract interactions. Today, users lose thousands due to fees when transferring Bitcoin into Ethereum (or another cryptocurrency). If these users could jump to a DeFi marketplace that runs natively on Bitcoin so they could evade those fees, they would do so in a heartbeat.

Finally, Bitcoin’s base layer is very stable and gives its users peace of mind regarding base layer changes. Other chains like Ethereum are already looking to simplify their base layer into something more akin to Bitcoin, so why not use Bitcoin instead? Even rollups, one of the main ways Ethereum scaled itself, seem possible on Bitcoin.

Closing Words

While traditionally speaking, Bitcoin isn’t the best chain to build apps on, Web3 has shown time and time again that traditions are meant to be broken. The base layer of Bitcoin provides extreme stability and security unmatched by its largest competitors, such as Ethereum.

As the report provided by Trust Machines shows us, there’s a great untapped demand for Bitcoin-native applications. However, until the advent of Layer 2 protocols like Liquid and Lightning Network, there was no way to tap into that demand due to how Bitcoin is designed.

Today, some developers are even stepping away from these Layer 2 protocols and embracing more creative solutions like Stacks – a way to get the benefits of Bitcoin’s base layer while embracing the future of DeFi, NFTs, and most importantly, the smart contracts that make it all possible.

Share76Tweet47

Related Posts

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

XRP Price and Network Activity Skyrocket 2,600% as Hinman … – Crypto News Flash

by admin
May 31, 2023
0

XRP Price and Network Activity Skyrocket 2,600% as Hinman ...  Crypto News Flash

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Wall Street gives crypto a chance – Financial Times

by admin
May 31, 2023
0

Wall Street gives crypto a chance  Financial Times

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

What the 'anti-mining bill' means for the crypto industry in Texas – Cointelegraph

by admin
May 30, 2023
0

What the 'anti-mining bill' means for the crypto industry in Texas  Cointelegraph

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

U.S. congressman says crypto mining tax scrapped in debt ceiling deal – Forkast News

by admin
May 30, 2023
0

U.S. congressman says crypto mining tax scrapped in debt ceiling deal  Forkast News

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Hong Kong Web3 industry forms new associations – Forkast News

by admin
May 29, 2023
0

Hong Kong Web3 industry forms new associations  Forkast News

Load More
  • Trending
  • Comments
  • Latest

Bitcoin Is ‘Definitely Not a Fraud,’ CEO of Mobile-Only Bank Revolut Says

March 2, 2022

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

March 3, 2022
How online shopping has changed over the last 30 years | National

How online shopping has changed over the last 30 years | National

April 6, 2022
Protocon Announces ‘Contract Model’, an Alternative

Protocon Announces ‘Contract Model’, an Alternative

April 6, 2022

US Commodities Regulator Beefs Up Bitcoin Futures Review

0

Bitcoin Hits 2018 Low as Concerns Mount on Regulation, Viability

0

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

0

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

0
HyperX Cloud II Gaming Headset – 7.1 Surround Sound – Memory Foam Ear Pads – Durable Aluminum Frame – Works with PC, PS4, PS4 PRO, Xbox One, Xbox One S – Gun Metal (KHX-HSCP-GM) (Renewed)

HyperX Cloud II Gaming Headset – 7.1 Surround Sound – Memory Foam Ear Pads – Durable Aluminum Frame – Works with PC, PS4, PS4 PRO, Xbox One, Xbox One S – Gun Metal (KHX-HSCP-GM) (Renewed)

June 1, 2023
Joymiso Tangle Free Earbuds for Kids Women Small Ears with Case, Comfortable Lightweight in Ear Headphones, Flat Cable Ear Buds Wired Earphones with Mic and Volume Control for Cell Phone Laptop (Blue)

Joymiso Tangle Free Earbuds for Kids Women Small Ears with Case, Comfortable Lightweight in Ear Headphones, Flat Cable Ear Buds Wired Earphones with Mic and Volume Control for Cell Phone Laptop (Blue)

June 1, 2023
Cubilux USB C Mic Splitter for TRRS Lav Microphone,TRRS Headphone Mic with Mic Monitoring,Type C to 3.5mm Microphone Splitter Suitable for Recording-USB C Support Android,Ipad OS,Mac OS,Window etc

Cubilux USB C Mic Splitter for TRRS Lav Microphone,TRRS Headphone Mic with Mic Monitoring,Type C to 3.5mm Microphone Splitter Suitable for Recording-USB C Support Android,Ipad OS,Mac OS,Window etc

June 1, 2023
ASTRO Gaming A10 Headset for Xbox One/Nintendo Switch / PS4 / PC and Mac – Wired 3.5mm and Boom Mic w/Velvet Pouch Bag – Bulk Packaging – (Blue/Black)

ASTRO Gaming A10 Headset for Xbox One/Nintendo Switch / PS4 / PC and Mac – Wired 3.5mm and Boom Mic w/Velvet Pouch Bag – Bulk Packaging – (Blue/Black)

June 1, 2023

Latest News

HyperX Cloud II Gaming Headset – 7.1 Surround Sound – Memory Foam Ear Pads – Durable Aluminum Frame – Works with PC, PS4, PS4 PRO, Xbox One, Xbox One S – Gun Metal (KHX-HSCP-GM) (Renewed)

HyperX Cloud II Gaming Headset – 7.1 Surround Sound – Memory Foam Ear Pads – Durable Aluminum Frame – Works with PC, PS4, PS4 PRO, Xbox One, Xbox One S – Gun Metal (KHX-HSCP-GM) (Renewed)

June 1, 2023
Joymiso Tangle Free Earbuds for Kids Women Small Ears with Case, Comfortable Lightweight in Ear Headphones, Flat Cable Ear Buds Wired Earphones with Mic and Volume Control for Cell Phone Laptop (Blue)

Joymiso Tangle Free Earbuds for Kids Women Small Ears with Case, Comfortable Lightweight in Ear Headphones, Flat Cable Ear Buds Wired Earphones with Mic and Volume Control for Cell Phone Laptop (Blue)

June 1, 2023

Categories

Site Navigation

  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services

© 2022 Designed by news4global

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • Videos

© 2022 Designed by news4global