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HomeBlockChainBitcoin wants layer-2 networks greater than Ethereum does — Merlin Chain founder

Bitcoin wants layer-2 networks greater than Ethereum does — Merlin Chain founder

Bitcoin decentralized finance (DeFi), or BTCFi, a brand new motion in search of to carry DeFi to the Bitcoin community, has grown in recognition because the creation of Ordinals and BRC-20 tokens. In episode 47 of Cointelegraph’s Hashing It Out podcast, Jeff, the founding father of Merlin Chain — a local Bitcoin layer-2 community — explains how the BTCFi motion is evolving from BRC-20 to BRC-420, the problems confronted by layer-2 networks and Bitcoin (BTC), and why the rise of constructing utility on the community is bullish for the complete ecosystem.

Jeff breaks down the distinction between BRC-420 and BRC-20, explaining that BRC-20 permits builders to create and mint tokens, whereas BRC-420 is about modulized knowledge and tokenized modules. He cites an instance of how an artist may use BRC-420 to distribute an album on-chain.

Jeff says that an artist can inscribe 5 songs individually after which put the entire songs collectively as one inscription by utilizing BRC-420. The artist can then tokenize the album into a number of shares, permitting followers to buy the album on-chain.