Charles Hoskinson, the founder of Cardano, claims that the network is preparing for Bitcoin adoption into the decentralized finance space.
Charles Hoskinson, the founder of Cardano, predicts that the network will be crucial to future Bitcoin DeFi transactions. According to Hoskinson, Cardano is preparing to investigate layer 2 solutions on the Bitcoin blockchain by forming several alliances and developing new ideas.
Cardano Will Aid Bitcoin Adoption In DeFi
In an interview with Scott Melker, the founder of Cardano disclosed bold plans for the network to accelerate the adoption of Bitcoin for DeFi applications. According to Hoskinson, big financial institutions will increase demand for Bitcoin DeFi because of their legal obligation to generate yield.
He points out that shareholders will demand comparable yields if a Bitcoin ETF offers DeFi yields. Hoskinson anticipates that institutions will establish themselves in UTXO DeFi and Bitcoin DeFi within three years.
According to Hoskinson, Cardano plans to integrate Hydra with the Bitcoin Lightning network and create a trustless ongoing bridge between the two networks. The creator further states that the Aiken programming language will allow Cardano and Bitcoin scripts to be made.
Additionally, users will receive a “turn-key experience” through a collaboration with Maestro, an infrastructure provider that permits Bitcoin integration with UTXO-based blockchain.
Hoskinson focuses more on technological innovation after missing the White House Crypto Summit. He points out that Cardano’s Bitcoin-focused initiatives won’t hurt the network’s roadmap.
Are DeFi Applications Ready for Bitcoin?
In the interview, Hoskinson disclosed that, in light of the developments in the Taproot and Lightning Network, Bitcoin is prepared for DeFi utility. The founder claims that Cardano will push the boundaries while Taproot added programmability features to the Bitcoin network.
He says Cardano will allow Bitcoin users to use only BTC for DeFi transactions. According to Hoskinson, a Bitcoin merger would be sufficient to significantly expand Cardano’s DeFi beyond the combined size of Ethereum and Solana.
Cardano’s price will soar due to the integration, but ADA is currently trading at $0,6611 after losing 10% in just one week. However, after a cyclical pattern forms, traders aim for an ADA pump in May.
