OP_NET has announced the launch of a new website. “SlowFi” The decentralized finance stack (DeFi) on Bitcoin uses native BTC and standard Bitcoin fees instead of bridges, packaged assets, or separate gas tokens.
In a release sent to Cointelegraph on Thursday, it was revealed that this project is a part of a larger push to get trading and other yield-oriented activities directly onto Bitcoin’s base layer rather than via bridges, sidechains or adjoining networks. OP_NET believes that some users are willing to accept more expensive and slower transactions if they want to stay on Bitcoin.
According to OP_NET’s co-founder Frederic Fosco (also known as Danny Plainview), applications are run using standard Bitcoin.BTCPlainview told Cointelegraph that every transaction on OP_NET is backed by Taproot. Plainview informed Cointelegraph every transaction is encrypted on OP_NET. “just a Bitcoin transaction with BTC as the only gas asset.”
The launch is landed in the middle a growing fight inside Bitcoin The debate is over whether data-heavy block usages, such as DeFi’s style of use and heavy data traffic on the network will increase its fee market or just be spam that clogs up monetary transactions.
Plainview says that an exchange would cost between $1 and $2 in normal conditions, but $10 to $20 if blocks were congested. Users pay the standard Bitcoin fees instead of a separate token for gas.
OP_NET defines the model in terms of “SlowFi,” Bitcoin’s block time of 10 minutes, coupled with the exit friction created by traffic congestion, can cause liquidity to be more stable and last longer. DeFi Faster chains than cycles
Related: Fireblocks to integrate Stacks for institutional-grade Bitcoin DeFi
Critics claim OP_NET is a DeFi-style Ethereum bloat
Plainview presented layer-1 DeFi to miner revenues as block subsidy declines, and argued that “miners are bleeding” Bitcoins will be halved on a regular basis. “The only thing that keeps miners solvent is a fee market,” He said insisting that OP_NET is not a network modify Bitcoin consensus
Related: Animoca, RootstockLabs partner to bring Bitcoin DeFi to Japanese institutions
Bitcoin users have criticized this view, arguing that moving DeFi-style activities onto layer one dilutes Bitcoin’s focus on money or fills the block with transactions which are not essential. Recent studies have shown that the number of transactions in a block is increasing. posts On X, critics described OP_NET’s attempt to bring Ethereum style crypto infrastructure on Bitcoin.
Maximalists argued Bitcoin proponents are enraged by any attempts to use Bitcoin for purposes other than money. “sh*tcoiners” Larping Bitcoiners
Plainview responded by saying any Taproot transaction that pays a fee should be considered a valid use of space.
He cautioned that drawing moral line around valid transactions gave de facto Bitcoin control to those who define these categories. He said:
“The whole point is that nobody controls it.”
OP_NET maintains DeFi for Bitcoin Base Layer
OP_NET is the latest attempt to program Bitcoin. Previous attempts include RSK, Stacks and other similar efforts.
RSK is a distinct entity. Ethereum Virtual Machine-compatible, sidechain that has its own RBTC-compatible gas token as well as a federated BTC pinning. Users can move money off the mainnet by trusting a federation.
Stacks on the other hand is a Bitcoin-anchored Layer-2, with STX and sBTC tokens. Smart contracts are executed using a different chain which settles periodic to Bitcoin, instead of inside transactions.
Plainview believes that by keeping the execution and fee directly in Bitcoin, and not using wrapped BTC assets or gas, some users may be willing to pay more for slower transactions if it means staying on Bitcoin’s base layer.
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Source: cointelegraph.com
