Bitcoin's Functionality:
Bitcoin operates as a decentralized digital currency, free from the control of central banks or a single administrator. Network nodes validate transactions using cryptography and record them in a public distributed ledger known as a blockchain. Mining, a process involving intricate computational problems, adds new transactions to the blockchain while rewarding miners with bitcoins.
GameFi on Bitcoin:
Within the Bitcoin ecosystem, GameFi, a fusion of gaming and decentralized finance (DeFi), is steadily gaining ground. Although it has yet to attain significant breakthroughs compared to other blockchain platforms, the number of projects exploring the integration of gaming with Bitcoin's secure and decentralized network is increasing. Nonetheless, these projects face challenges in gaining traction and popularity when compared to their counterparts on other blockchain networks.
Enhancing Bitcoin's DeFi Features:
Bitcoin's original design, primarily focused on secure transactions, lacks some of the more advanced DeFi features found in networks like Ethereum and Arbitrum. These platforms have cultivated robust ecosystems that support smart contracts, enabling a wide array of DeFi applications such as lending, borrowing, and complex financial instruments. If Bitcoin were to incorporate similar features, it could potentially open up new avenues for financial innovation and expansion.
A Dedicated Layer for Bitcoin dApps and Games:
To effectively support decentralized applications (dApps) and games, Bitcoin may require a dedicated layer or sidechain. This would empower developers to create and deploy dApps and games without congesting the main Bitcoin network while still benefiting from its security and decentralization.
Bitcoin is considered the pioneer in the cryptocurrency market and is often viewed as the safest and most secure digital asset by many. However, using Bitcoin can entail certain complexities and may come with a hefty price tag. Bitcoin is a decentralized digital currency, which means users need to take additional security measures such as safeguarding their digital wallets and protecting their private keys since there is no central authority or bank to rely on. Additionally, Bitcoin transactions can require high transaction fees, especially during peak periods, making it costly for those looking to transact with smaller amounts.
Users want a chain to store value (Store of Value) -> That's why they choose Bitcoin
But as more and more people choose Bitcoin, the chain becomes overloaded and costs are very high
