Bitcoin Use Cases See 'Explosive Growth'

Bitcoin Network Use Cases Are Growing

In their report, Trust Machines points out that while the development of Web3 was mainly based on other blockchains like Ethereum, the development of Bitcoin is starting to take off thanks to the emergence of new technologies and opportunities.

Muneeb Ali, CEO of Trust Machines and co-founder of Stacks, said during the “Building on Bitcoin (for real)” panel at the Consensus 2023 conference that Bitcoin has the potential to become the last layer of settlement for the economy. decentralized. .

Additionally, on the Empire podcast, Ali discussed the potential of the Ordinals protocol, as the first Bitcoin blockchain use case that has managed to capture the interest of the right audience. The businessman recalled that NFTs were born on the Bitcoin blockchaindespite the fact that most people associate them with Ethereum.

Ordinals, listings on the Bitcoin blockchain similar to NFTs, have grown in popularity, now surpassing 3 million listings.

Development of Web3 protocols based on Bitcoin

Web3 is the name given to the new blockchain-based decentralized internet.

This new site allows the creation of services and applications without intermediaries or central authorities, promising a freer, fairer and more participative internet, where users and developers are owners and beneficiaries of their own data and creations.

Here are some examples of Web3 projects that use the Bitcoin blockchain:

• Battery: a platform that allows building decentralized applications (dApps) and smart contracts on the Bitcoin network, taking advantage of its security and liquidity.
• RSK: a network that offers an Ethereum-compatible virtual machine in addition to Bitcoin, facilitating the development of dApps and decentralized finance (DeFi) solutions.
• Sovrin: a DeFi protocol that works on top of RSK, offering services such as lending, token exchanges and derivatives with Bitcoin as the main asset.
• Lightning Network: a network of payment channels and the leading Bitcoin scaling solution that enables instant and low-cost transactions with BTC, opening up the possibility of creating new micropayment applications.

These technologies represent an opportunity to expand Bitcoin’s potential beyond payments and drive innovation and financial inclusion in the Web3 era.

Ordinal Protocol and Nostr Revitalize Bitcoin

Trust Machines points out that protocols like Ordinals and Nostr are reinvigorating the Bitcoin blockchain, pushing their use cases beyond the financial ecosystem.

In fact, the company has published a series of Bitcoin Ordinals content titled “Not Your Ordinary NFTs: An Exploration of Bitcoin Ordinals”. Through this series, Trust Machines introduces new ordinal topics of interest and explains how this protocol has impacted the Bitcoin ecosystem and cryptocurrencies in general.

About Nostr, the decentralized social network protocol backed by Jack Dorsey, Trust Machines pointed out that it is an innovation that has also revived interest in relying on the Bitcoin blockchain, expanding the possibilities of users of this cryptocurrency.

On the other hand, the report published by the company also shows a 400% increase in the number of Bitcoin domain name registrations since 2022. According to the data, currently there are 13,000 Bitcoin-based domain names registered through the Bitcoin Name System (BNS). This platform allows users to register human-readable “.btc” domain names that can be used to host a website or to send and receive bitcoin payments.

Trust Machines attributes the increase in BNS records to both Ordinals and Nostr, allowing users to create and share content on the Bitcoin blockchain without intermediaries or censorship.

Stacks, a blockchain built on Bitcoin

Finally, Trust Machines attributes the growth of Bitcoin use cases to the growing development of Stacks, a platform that makes it easy to build decentralized network-based applications without sacrificing power, security, and decentralization.

Market analyst firm Messari recently noted that Stacks has seen phenomenal growth in the number of users and active addresses per daywith an increase of 76% and 42%, respectively, since the last quarter of 2022.

Stacks introduced the Stacks Bitcoin (sBTC) token as a new digital asset that makes Bitcoin fully programmable and compatible with the decentralized finance (DeFi) ecosystem and NFT tokens. In its whitepaper, published in 2022, Stacks explained how sBTC works and how this digital asset can be used to build DeFi applications leveraging the Bitcoin network.