Welcome to the 5th edition of our exciting new series, dubbed the ‘X Talks Bitcoin’ series. This is not just another industry discussion. It’s a unique opportunity for the pSTAKE community and Bitcoin enthusiasts to gain exclusive insights into Bitcoin, the emerging BTCfi industry, and potential yield-generating strategies.
Our series will feature expert opinions, providing invaluable insights into the future of Bitcoin and how we can all best position ourselves. These discussions are not just relevant but crucial to all our readers, offering a “not-to-be-missed” and “thought-provoking” perspective on what’s coming next for Bitcoin.
We spoke to LST Maximalist (a thought provoking leader in LST/LRT) in the previous edition about Bitcoin Liquid Staking. Today Andy shares his candid thoughts on Bitcoin and Modularity.
1) Where Does the Modular World Meet Bitcoin?
The modular world meets Bitcoin through the development of Layer 2 and sidechain solutions like the Lightning Network and RSK (Rootstock). These solutions enhance Bitcoin’s functionality by enabling faster transactions and smart contracts, without altering the base layer. Modular design allows Bitcoin to maintain its core attributes—decentralization and security—while adopting new features. This approach aligns with the modular philosophy of adding specialized layers to enhance scalability, privacy, and interoperability, thus ensuring that Bitcoin remains a foundational asset while evolving with technological advancements.
2) Is BTC More Ultra-Sound Capital for Restaking than ETH?
Bitcoin (BTC) is often considered more “ultra-sound” capital due to its fixed supply of 21 million coins and its reputation as a store of value. However, when it comes to restaking—staking collateral for securing multiple protocols—Ethereum (ETH) might be more suitable. ETH is more versatile within DeFi and has built-in staking mechanisms through Ethereum 2.0. Bitcoin’s primary use case as a store of value and its limited programmability compared to ETH make it less flexible for restaking purposes. Thus, BTC is ultra-sound for holding, while ETH is more practical for restaking.
3) What Role Will Modular Projects Play in the Scaling of Bitcoin Network?
Modular projects will play a crucial role in scaling the Bitcoin network by introducing new layers that handle different functions, such as faster transactions, smart contracts, and enhanced privacy. These projects, like the Lightning Network and potential sidechains, allow Bitcoin to scale horizontally without compromising the security and decentralization of the base layer. Modular approaches enable the Bitcoin network to remain robust and secure while addressing the limitations of its original design, ultimately expanding its use cases and accessibility in a growing digital economy.
About pSTAKE Finance
pSTAKE Finance is a Bitcoin Yield and Liquid Staking protocol, backed by Binance Labs.
With pSTAKE Finance, users can liquid stake BTC to get rewards from Babylon’s Trustless BTC staking for securing other app chains while maintaining their liquidity.
Accessing Bitcoin yields should not be complex, risky, or unsafe. With four years of liquid staking expertise and expert-curated yield strategies, pSTAKE Finance helps individuals and institutions put their BTC to work in BTCfi.
pSTAKE Finance has partnered with leading blockchain security firms, such as Halborn, Hexens, Oak Security, Immunefi, Forta, and more, to offer a secure liquid staking product suite.
PSTAKE is the governance and incentivization token of the pSTAKE Finance protocol. It has some of the most prominent investors, including Binance Labs, DeFiance Capital, Spartan Group, Coinbase Ventures, and Kraken Ventures.
