Design the future of Defi on Bitcoin

Design the future of Defi on Bitcoin

Bitcoin is the world's largest and most popular cryptocurrency, and the protocol is known for its decentralized nature and safe transactions. Despite his widespread acceptance, Bitcoin lacks a decisive feature - the ability to carry out smart contracts.

Intelligent contracts enable automated transactions and enable the creation of decentralized applications (DAPPS) and decentralized financial products (Defi). This deficiency in the Bitcoin network has led to many in the crypto community looking for a solution to bring smart contract functions into the blockchain.

Such an example is mintlayer. The project is a Bitcoin-Layer-2 solution that aims to tackle this long-existing problem by enabling smart contracts in the Bitcoin network and ultimately being included in the protocol.

what is mintlayer?

Mintlayer is a layer 2 scaling platform that aims to build a decentralized financial ecosystem on Bitcoin without affecting safety or scalability. The Layer-2 Blockchain solution of the project opens up opportunities for Defi, Smart Contracts, Atomic Swaps, not fungible tokens and other dapps in the Bitcoin network.

About his Mainnet, Mintlayer offers a platform for developers to create defi applications with real financial applications and thus promote the development of the defi industry within its ecosystem. With this goal in mind, Mintlayer strives to shape the future of financial system by using the decentralized nature of Bitcoin.

The protocol is also compatible with the Bitcoin Lightning Network, which is known for faster transactions.

functions of mintlayer

atomic exchange

mintlayer will develop a decentralized stock exchange (Dex) for atomic swaps. Assets in the ecosystem are exchanged 1: 1 with native bitcoins. Mintlayer aims to be the only Defi/Bitcoin platform that is directly interoperable with native BTC, in contrast to other platforms that use agents such as wrapped BTC or token Federation.

scalability

The blockchain scalability is a function that shows the number of transactions per second (TPS) that a network can process under normal conditions. For example, the Bitcoin protocol can process seven transactions per second.

Mintlayer solves blockchain scalability by reducing the transaction size by about 70 %. This reduces transaction fees and the network overload, which is accompanied by slow transactions. The network also uses the Lightning Network to support the transaction throughput.

privacy

Blockchain security is another crucial feature that protects the technology from cyber attacks and manipulations. As a layer 2 solution, the Mintlayer team knows how important it is to ensure data protection and security for the users. Mintlayer develops a tokenization standard called MLS-02. These MLS-02-tokens with activated data protection enable users to carry out confidential transactions to mintlayer with increased anonymity.

decentralization

decentralization is a blockchain function that deprives a central source of authority and hands it over to a trustworthy community of members. Blockchain is decentralized if it has several nodes that confirm the transactions (i.e. the higher the number of nodes, the more decentralized the network).

Mintlayer simplifies the process that is connected to the operation of a node, which in his opinion will help "to achieve a real decentralization".

Mintlayer token (MLT)

mlt is a utility token for the Mintlayer ecosystem. The cryptocurrency will go live on March 21, 2023. The project developers have already pre-made 400 million MLT tokens for the distribution and transmission. The development team is planning to release 15.8 million MLT token at the token generation Event.

The MLT token is used for various activities on the platform, including transaction fees, governance and staking. Token owners can use their tokens and become network validators. These validators are rewarded with transaction fees from the blocks they have validated.

As a governance token, MLT owners can take part in the decision-making process that affects the Mintlayer ecosystem. The development team claims that token owners "ultimately decide on the fate and direction of the network" when the asset is started.

Mintlayer ecosystem

The goal of Mintlayer is to create a flourishing ecosystem of projects with real value. In order to achieve this goal, the ecosystem has several initiatives to support the development and introduction of the platform, such as:

• ecosystem Fund - Early phase financing for founders
• Incubator program-offers support and mentoring for projects in the early phase
• Accelerator program-connection of established projects with financing and support
• grants initiative-you grant opportunities for open source projects to build on mintlayer (or to port on mintlayer).

conclusion

Mintlayer is a layer 2 scaling solution that aims to bring intelligent contracts and defi into the Bitcoin network without affecting decentralization, security and scalability.

By using the security of the world's largest cryptocurrency and integration of the Lightning network, Mintlayer wants to provide a platform for developers to create applications with real financial applications.

users can exchange assets on mintlayer directly for native BTC on the main chain without dealing with PEG-in, packaged tokens and federated coins.

projects have access to ecosystem initiatives to support the development on the platform.

The protocol is introduced to its own token, mlt, which is used for transaction fees, governance and staking.