Charles Hoskinson envisions Cardano playing a pivotal role in Bitcoin’s DeFi ecosystem, leveraging layer 2 solutions and new partnerships to bridge the two networks.
In a recent discussion with Scott Melker, Hoskinson outlined Cardano’s strategy to integrate with Bitcoin’s DeFi landscape. He predicts institutional interest in Bitcoin yield-generating products will surge over the next three years, making decentralized finance a necessity for Bitcoin holders.
To facilitate this, Cardano plans to merge its Hydra scaling solution with the Bitcoin Lightning Network, establishing a trustless bridge between the ecosystems. Additionally, the Aiken programming language will allow for cross-chain scripting between Bitcoin and Cardano. Collaborations with infrastructure providers like Maestro will streamline this integration, ensuring a seamless user experience.
Hoskinson emphasized that while these developments are still in the early stages, steady progress is being made. He also reassured that these initiatives will not derail Cardano’s broader roadmap.
With advancements such as the Taproot upgrade and Lightning Network, Hoskinson believes Bitcoin is now equipped to support DeFi applications. He argues that by enabling users to interact with DeFi solely using BTC, Cardano could position itself as a major player in the space, surpassing even Ethereum and Solana.
Despite these ambitious plans, ADA has struggled in the market, currently trading at $0.66 after a 10% weekly decline. However, some analysts anticipate a significant price surge by May, with projections reaching as high as $10 due to Cardano’s strengthening fundamentals and partnerships.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/cardano-sets-sights-on-bitcoin-defi-with-layer-2-expansion/