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Bitcoin's OP_CAT Upgrade Could Make It a Serious Competitor to Ethereum in DeFi Activity

Bitcoin's OP_CAT Upgrade Could Make It a Serious Competitor to Ethereum in DeFi Activity

CointimeCointime2024/11/11 12:44
By:Cointime

The Bitcoin network may soon compete with Ethereum in terms of decentralized finance (DeFi) activity, thanks to the reintroduction of a long-dormant code called "OP_CAT" that was originally created by Satoshi Nakamoto but removed in 2010 due to security concerns. A proposal to reintroduce the code via a soft fork to the Bitcoin network was introduced in October 2023, which will bring new upgrades to the network and expand its smart contract-like functionalities. While some believe that the current structure of sidechains is sufficient for scaling Bitcoin, others see OP_CAT as crucial for achieving genuine scalability and a trustless environment for Bitcoin DeFi. Labrys founder Lachlan Feeney argues that OP_CAT is essential for the long-term survival of the Bitcoin network, as it must have a thriving L2 ecosystem to sustain itself based on transaction fees.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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