Mikael.btc is a blockchain developer who created the BRC-100 token standard. He now says he wants to split the BRC-20 protocol in two to add decentralized finance (DeFi) to the Bitcoin network. The coder laid out the plan in a post on an old version of Twitter, which is now called X.
The current BRC-20 standard has some issues that Mikael.btc brought up. For example, it can’t be programmed, it has issues with growth, and it doesn’t have a set DeFi infrastructure. These issues will be fixed by the suggested fork, which will make Bitcoin useful in more cases than the ones it was made for before.
New Protocol Enhances Bitcoin
The new system will use technologies like OP_RETURN and Inscriptions, which are used to add metadata to Bitcoin’s smallest unit (satoshis) and store data within Bitcoin transactions. Mikael.btc says that these improvements will make it possible for the Bitcoin network to support DeFi applications. This will give users better access to decentralized banking services.
“Every BRC-20 token will be mapped to a BRC-100 token with the same ticker and the same supply. 100% of the new BRC-100 token will be distributed to the holders of the original BRC-20 token, with the exactly same amount as the holdings on BRC-20.”
Mikael.btc
After the split, people who own BRC-20 tokens will instantly get assets on the BRC-100 protocol that have the same value. People who hold BRC-20 tokens on centralized exchanges, on the other hand, may have to wait longer to get the new forked assets while the exchanges work to spread them.
On the Bitcoin network, there has been more help for DeFi lately. Part of the reason for this is a study from Pantera Capital, a top crypto venture capital firm. The research says that Bitcoin’s DeFi environment could generate hundreds of billions of dollars in cash through Web3 protocols. In this case, it could get the same amount of market share as Ethereum’s well-known DeFi sector.
Bitcoin’s place in decentralized finance, which has been dominated by Ethereum in the past, will grow thanks to the proposed fork and the rollout of the new protocol that will follow. Adding DeFi could bring in new money and ideas as the Bitcoin network changes. This would make Bitcoin’s position in the cryptocurrency world even stronger.
