Jack Dorsey Sets Up Separate Division to Make DeFi on Bitcoin a Reality Jul 16, 2021 Jul 16, 2021 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Bitcoin NewsJuly 16, 2021 by Kelly Cromley

Jack Dorsey Sets Up Separate Division to Make DeFi on Bitcoin a Reality

Square CEO Jack Dorsey has disclosed that the company is forming a separate unit that will concentrate on developing Bitcoin-based decentralized banking facilities. The new division will also be creating a “open developer framework with the exclusive purpose of simplifying the creation of non-custodial, permissionless, and decentralized financial services.” In his tweet, Dorsey also stated that “Bitcoin is our main objective.”

Engineer Mike Brock, who earlier headed a team of coders to work on embedding Bitcoin functionality for the Cash App in 2018, was designated the unit’s leader by Dorsey. Brock has worked on open source ventures as part of Red Hat Inc., an enterprise level open source solutions provider.

A company of Square’s size striving to offer simple DeFi solutions on Bitcoin may possibly boost adoption and give Ethereum-based DeFi a run for its money. Bitcoin presently lacks smart contract functionality, making it tough to fight with Ethereum-based DeFi and its compatible ‘Money Legos.’

To launch smart contracts, decentralized finance on Bitcoin requires special framework like bridges and sidechains.

Ethereum leads the 100 largest DeFi platforms with respect to locked value (TVL), as per Defi Llama statistics, with AAVE leading the pack with $9.09 billion TVL. Binance also competes with services like Pancake Swap, which is ranked ninth and has $3.76 billion in TVL. The Lightning Network, which holds the position of 103 on DeFi LLama and has a TVL of $58.7 million, is the top ranked Bitcoin-based venture.

Nevertheless, TVL isn’t always the ideal metric for assessing the Lightning Network’s usefulness. In 2021, DeFi on Ethereum has expanded, with the entire DeFi customer base (as defined in context of unique addresses) growing from 1.1 million in January to roughly 3 million in July, as per Dune Analytics data.

Another reason that might assist the spread of BTC-based DeFi, in addition to Square’s current effort, is the Taproot upgrade scheduled for mid-November. Furthermore, the update is said to allow for the use of BTC smart contracts.

Square’s new business unit complements its other service offerings, which include Cash App, Square Seller, and the Tidal streaming facility, which Dorsey lately hinted might incorporate blockchain tech components like smart contacts and NFTs.

The Bitcoin DeFi news comes after Dorsey said on Twitter earlier in July that Square will develop its native Bitcoin hardware wallet with aided safekeeping to make things simple for mainstream customers.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.