Can the Bitcoin-driven public chain Core become the optimal solution for BTCFi?

Written by angelilu, Foresight News

Bitcoin just celebrated its 15th birthday this year, and the fourth halving of its life cycle is imminent, with 21 million coins to be halved.Token92% of the total supply have been mined. At this historic moment, "applications" such as inscriptions and Bitcoin NFTs have exploded the market in the past six months. Bitcoin smartcontractThe enthusiasm for the ecosystem has also been rekindled. For the current Bitcoin, DeFi is a relatively lacking link but has the greatest room for imagination.

People are still looking for a way to fully inherit BitcoinSafetyThis article will introduce the BTCFi solution provided by the public chain Core.

What is the Core Chain?

Core chain is EVM-compatible Layer 1 powered by Bitcoin Blockchain, "Bitcoin Driven" is the Core chain that can inherit the Bitcoin networkSafetyThis is the key to the stability of the network, and this is reflected in the consensus mechanism of the Core chain.

The consensus mechanism of the Core chain combines Bitcoin PoW. Specifically, the 21 verification nodes of Core are selected through a hybrid scoring system. The scoring criteria include the Bitcoin computing power staked on the verification node and the native Bitcoin hashrate of the Core chain.Token The number of CORE staked, and in the future, it is planned to use Bitcoin stake as one of the criteria for node scoring.

Can it become the optimal solution for BTCFi?

As a newcomer in the BTCFi field, whether the Core chain can become the optimal solution remains to be verified by the market, but its Bitcoin PoW consensus mechanism and the upcoming Bitcoin pledge are undoubtedly itsSafetyThe characteristics of security and decentralization provide strong support.

The consensus mechanism of the Core chain is based on Bitcoin PoW

The biggest difference between the Core chain and other current Bitcoin ecological projects is that the consensus mechanism of the Core chain directly uses Bitcoin's PoW. Bitcoin's PoW consensus is currently the most time-tested consensus.Safety和去中心化的去中心化记账机制。那么 Core 链让比特币的 PoW 机制成为共识的一部分，也是为 Core 链增加了一个安全的「保护壳」，让 PoW 在保障比特BinanceWhile being complete and decentralized, it also ensures the security of the Core chain.

For Bitcoin miners, the Core chain's consensus mechanism also provides an option to earn profits without incurring additional energy and time costs, providing miners with the possibility of diversified income as Bitcoin rewards continue to decrease.

According to the Core chainOfficial websiteThe data shows that the computing power of the verification nodes currently entrusted to the Core chain is 218.32 EH/S, accounting for 35% of the total Bitcoin computing power of 611.3 EH/s. This number was onceReached 40%Huobi, OKX, Bitget and other largeexchangeIt has joined the Core chain as a verification node to jointly ensure its safe operation.

Bitcoin staking will start in Q2 2024

在结合了比特币 PoW 的基础上，Core 链将于今年 Q2 在共识机制中引入比特币质押，也就是说未来 Core 链的验证节点评分将包含三个权重因素，分别是比特币算力、质押的 CORE Token、质押的比特币。

Bitcoin is currently the crypto asset with the highest market value and the strongest consensus. The Core chain introduces the Bitcoin staking function, combined with the underlying use of Bitcoin PoW to maintain the decentralization and security of the public chain. The Core chain has great potential to fully open up the prosperity of BTCFi.

For Bitcoin holders/investors, the new Bitcoin staking feature of the Core chain will also be a new and competitive investment option, because the Bitcoin staking process of the Core chain is non-custodial and safer than some centralized custodians. The participation of Bitcoin pledgers will fully open up a BTC 2.0 era, allowing Bitcoin pledgers, Bitcoin computing power pledgers, and CORE pledgers to continue to gain income, forming an economic cycle of mutual positive incentives.

At this point, the introduction to the Core consensus mechanism is complete. Core is an EVM-compatible and fully inherited Bitcoin consensus mechanism.BinanceIt is a comprehensive public chain that has the conditions for developing Bitcoin DeFi, and can also provide infrastructure for the migration of existing DeFi projects to Core and build the Bitcoin DeFi ecosystem.

Introducing stCORE and laying out BTC DeFi

Liquidity staking is the sector with the highest TVL in the current DeFi field. It is simpler than more complex DeFi activities and can also improve the utility of tokens. Therefore, Core's initial exploration of Bitcoin DeFi focuses on liquidity staking strategies. Core recently announced the launch of the liquidity staking token stCORE to solve the problem that tokens cannot be traded after staking CORE. After staking CORE, users will receive an equal amount of liquidity staking tokens stCORE. stCORE can be traded, sold or used in other DeFi protocols while CORE has been staked, enhancing user liquidity.

In addition, the Core chain's 2024 Bitcoin staking roadmap shows that it will also launch Wrapped BTC minted and locked on Core, staking of Core chain native Bitcoin, and Wrapped BTC incentive mechanisms to enhance the utility of Bitcoin on the Core chain.

Core Team and Background

After gaining an in-depth understanding of the consensus mechanism of the Core chain and its vision of building a Bitcoin DeFi ecosystem, understanding the team and organization behind it can also help us further understand Core. DAO The organization is responsible for operations and currently has more than 45 members worldwide. Among them, core contributor Rich Rines has three years of experience working at Coinbase and is the chief engineer responsible for fund flows. Other members of the team also come from well-known large institutions in the industry and hold senior positions, including Blockchain.com, MoonPay, BNB Chain, etc.

Core DAO The contributor team has a strong background, and their operational effectiveness is also reflected in the data of social media. On the X (formerly Twitter) platform, Core DAO The number of followers on Discord has exceeded 2.1 million.CommunityThe number of members exceeds 250,000, indicating that it has a largeCommunityBase.

Core Token CORE

The token CORE is the utility and governance token of the Core chain. It can be used to pay gas fees for transactions, stake on the Core network, and participate in network governance. It will be launched in February 2023 with a total supply of 2.1 billion. The total supply in its token economic model is:

• 39.995% (about 840 million pieces) for node mining rewards;

• 25.029% (about 525 million pieces) for user rewards;

• 15% (about 315 million pieces) are distributed to project contributors;

• 10% (about 210 million pieces) are used as reserves;Xiaobai Navigation

• 9.5% (about 200 million) are allocated to the treasury to support the development of the Core chain ecosystem;

• 0.476% (about 10 million pieces) is used for relay node rewards.

From the above distribution model, it can be seen that CORE tokens are mostly allocated to node mining. The node reward of 39.995% will be distributed in about 81 years, and the block reward will decrease by 3.6% each year.

summary

The various features of the Core chain are built around the creation of the BTCFi ecosystem, including its innovative consensus mechanism that combines PoW, a large user base, and compatibility with EVM. In 2024, Core will use these features to supplement and improve the Bitcoin DeFi ecosystem. At the same time, Bitcoin's powerful network and high security will in turn support the stable and secure operation of the Core chain, which can be said to be mutually reinforcing and evolving together.

The article comes from the Internet:Can the Bitcoin-driven public chain Core become the optimal solution for BTCFi?

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