1/🧵
What would Hive look like with a wrapped version of Bitcoin tied to it? How would this change things? We are going to find out according to the people with SpkNetwork.
1/🧵
What would Hive look like with a wrapped version of Bitcoin tied to it? How would this change things? We are going to find out according to the people with SpkNetwork.
5/ We also would have direct access from Hive (HBD) to BTC. This would be helpful as regulation is likely to make it harder to deal with crypto to fiat outside of BTC.
2/ We are going to see a time when Bitcoin will be wrapped on the sidechain. This is the power of smart contracts. Once this happens, Hive could be a transfer layer for Bitcoin, using fast and feeless.
3/ This was obviously the goal of Lightning which achieved that to a degree. However, since there is no incentive for the node operators, this means they profit from tx fees. When fees get high, smaller nodes end up losing money.
4/ Many believe this will lead to only a few major node operators who know other ways to monetize. This might counteract the decentralization at the base layer of Bitcoin. Could Hive solve this with its incentivized node system in place?
https://leofinance.io/posts/taskmaster4450/wrapped-bitcoin-using-hive-how-that-would-change-things
Gotta read that, i'm so new to this I don't quite understand what even are the wrapped tokens. I have so much to study
Wow... very interesting developments. But in other blockchains BTC is brought there and its used in DEFI there,,, its very necessary for HIve to also bring BTC and offer Defi oppurtunities for the brought that will wrapped BTC in Hive.
Reading through this threadstorm feels like its a continuation of our discussion yesterday. I remember when the people of SpkNetwork mentioned wrapping of Bitcoin, and from what I learnt in our discussion, it will aid to keep Hive....
decentralized in the face of CEXes.
This will be a wonderful move from the SpkNetwork. We hope to see how it all works out... and I believe it'll be a success!
So basically node oprerating becomes less profitable because running a node is expensive and the profit isn't that potentially good? What's going to be downside to this
Blessing to the SpkNetwork team for coming up with this idea. Hope to see such a massive change impacting Hivers.