As the world of finance rapidly evolves, one trend that is capturing significant attention is the rise of decentralized finance (DeFi), which offers a revolutionary alternative to traditional banking systems and puts individuals in control of their financial futures.
With decentralized networks like Bitcoin and Ethereum, people can access various financial services like lending, borrowing, trading, and asset management 24/7/365, without relying on intermediaries. DeFi democratizes finance by promoting accessibility, transparency, and security for the masses. It's an exciting time for the financial world as DeFi continues to change the game and bring more people into the world of decentralized finance.
DeFi Evolution Timeline
Let’s take a look at how it all started, how it evolved, and where do people make DeFi history these days:
🎂 2008
The pseudonymous Satoshi Nakamoto publishes the Bitcoin white paper, which outlines the design of a decentralized digital currency based on cryptography and a blockchain ledger.
🧑💻 2009
DeFi was born when the first Bitcoin block was mined, the first P2P digital asset built on top of the blockchain network.
🏪 2013
The first decentralized cryptocurrency exchange, CryptoNext, launched
🤖 2014
The first decentralized autonomous organization (DAO) is created on the Ethereum network.
🧐 2015
Ethereum launches its initial coin offering (ICO), raising $18 million in ether
📜 2016
The Ethereum network goes live, enabling the development of smart contracts and decentralized applications
💸 2018
The launch of the Compound and Uniswap protocol, which allows users to earn interest and trade cryptos, marks a new era of the DeFi movement.
📈 2019
DeFi sees rapid growth, with the launch of numerous decentralized exchanges, lending/borrowing platforms, and stablecoins such as MakerDao, Curve, dYdX, Aave, DAI, etc.
⛏️ 2020
DeFi Summer reaches mainstream awareness fueled by the liquidity mining program of COMP tokens launched by Compound in May 2020.
䷰ 2021
DeFi continues to evolve, with the launch of new protocols and financial instruments and an increase in regulatory attention.
🛸 2023
DFINITY Foundation launches ckBTC, a native BTC integration that replaces wrapped tokens and bridges with pure cryptography.
#ckBTC is Every/Where/Thing
A revolutionary solution by the Internet Computer allows network users to directly hold, receive, and seamlessly send Chain-Key Bitcoin (ckBTC) – cryptographically backed 1:1 with real bitcoin. The world’s most popular cryptocurrency can now be utilized for decentralized finance (DeFi) operations, such as yield farming, lending, and payments.
Directly integrating with Bitcoin eliminates the need for bridged or wrapped Bitcoin, a common but unreliable method for connecting different blockchains and one susceptible to errors and hacking attempts. With ckBTC, transactions will be processed quickly and inexpensively on a local ledger and finalized on the Bitcoin network only when necessary.
To better understand ckBTC, here is a comparison table of BTC, ckBTC, wBTC, tBTC:
|
Feature |
BTC |
ckBTC |
wBTC |
tBTC |
|---|---|---|---|---|
|
Definition |
Bitcoin is a decentralized cryptocurrency and digital payment system |
ckBTC is a token backed 1:1 by Bitcoin and built on top of the Internet Computer |
wBTC is a token backed 1:1 by Bitcoin and built on the Ethereum network |
tBTC is a token backed 1:1 by Bitcoin and built on the Ethereum network |
|
Purpose |
To provide a decentralized, peer-to-peer digital currency and payment system |
To provide a fast and low-cost alternative for Bitcoin transactions and decentralized finance activities |
To bring Bitcoin's security to the Ethereum network for decentralized finance activities |
To bring Bitcoin's security to the Ethereum network for decentralized finance activities |
|
Issuance |
Created through a decentralized network of computers solving complex mathematical problems |
Issued and redeemed through canister smart contracts on the Internet Computer |
Issued through a centralized custodian and can be redeemed for Bitcoin |
Issued through a decentralized network of trusted participants and can be redeemed for Bitcoin |
|
Pros/Cons |
Secure, transparent, and resistant to manipulation. |
Transactions with ckBTC are processed quickly and inexpensively on a local ledger and only settled on the Bitcoin network when necessary. |
Less decentralized than Bitcoin or ckBTC. |
tBTC is issued and managed by a decentralized network of trusted participants, making it more decentralized than wBTC |
Is ckBTC for real, or is it just an alien tech?
Indeed, #ckBTC is now live. The testnet has been active for an extended period, providing developers and builders ample opportunity to experiment with the technology. Here’s what that means for users: if you managed to get your hands on some $ckBTC, then you are good to swap it on ICP Decentralized Exchanges (DEXes).
The talent and ambition of developers building on the Internet Computer blockchain is unlike any other ecosystem. Every project that takes part in this program has the ability to make a real impact in the blockchain industry.
But what about the bigger picture? Some ICP Community projects are already developing solutions on top of this integration. DEXes such as Helix Markets and IC Lighthouse are leveraging the Bitcoin and Chain-Key signing features to offer bridgeless inter-chain token swaps. Finterest, a platform that allows cross-chain lending and borrowing against crypto without bridging, including Bitcoin, is using ckBTC too. Funded – an NFT-based crowdfunding platform – is using ICP-BTC integration to accept funding for projects in BTC.
The DFINITY R&D team exceeded my expectations. They are excellent. I spoke with the engineers about the BTC and ETH integration. I was impressed!
AstroX Co-Founder
It's amazing, isn't it? You can use BTC to crowdfund your digital project. Although this ignites my excitement, it appears there are no projects doing this…yet. Maybe it should be you who runs the first BTC fundraiser on Funded? Got a brilliant idea? Go check it out. It’s time to build!
What is ICP Lab?
ICP.Lab is a unique chance to meet other DeFi enthusiasts and professionals, share knowledge, and build the future of DeFi together. From what it seems, if you want to be at the forefront of the DeFi revolution in 2023 - ICP.Lab is the place to go. According to the source, you can witness it monthly at Dfinity HQ in Zurich.
This DeFi meetup for the Internet Computer community marks the start of its third ICP.Lab initiative. This is an exceptional opportunity for DeFi enthusiasts and professionals to join the DeFi revolution and learn about the latest trends and developments in the space.
Attendees of the program have the exclusive chance to be based at the Dfinity Foundation's headquarters in Zürich, Switzerland, the largest blockchain research and development center in the region. This is where participants get direct access to the wealth of knowledge and expertise from the experienced DFINITY team, including personalized coaching and workshops led by DFINITY's experts in R&D, Growth, Finance, Operations, and other key areas of the business.
This week was very good and exceeded my expectations. I found the DFINITY team to be practical and helpful. So many developers with the same goal are gathered in the same room. It was a great opportunity to learn and get helpful feedback from the team
People from the Foundation mentioned the plans to also open its extensive network of advisors and investors to the selected projects, which really excites me personally.
As if that was not enough, ICP.Lab has partnered with some of the most active investors and participants in the Swiss blockchain space, including CV Labs, CV VC, INACTA, Crypto Valley, and Crypto Oasis, to bring more DeFi intel together and drive innovation forward.
“The projects unlike any other projects”
-
Helix Markets : Bringing true ownership and full transparency to DeFi trading -
Infinity Swap : An automated market maker (AMM) that allows users to create, stake, and swap ETH & IC tokens -
Finterest : A lending protocol that allows users to supply assets to the protocol and earn yield upon them -
ICP League : An Internet Computer community initiative with 40,000+ community members and 500+ community developers -
AstroX : Developers of the ME wallet - a multi-chain smart wallet that uses biometric technologies including fingerprints and facial recognition -
Orderswap : A DEX built on the Internet Computer blockchain -
Mix Labs : A leading-edge technology laboratory in the blockchain direction composed of top universities and community developers in Asia -
IC Lighthouse : DeFi development framework and Defi ecosystem on Internet Computer blockchain. -
Rock Labs : Building multi-chain products and tools for the next era of decentralized internet -
??? : Although there were 10 projects announced, I could only get my hands on 9 of them. If you are / you know that mysterious one - please ping me on Twitter. The first 10 people will get 1 ICP from me.
… at Google we're always thinking about 10x-ing things. I wanted to bring that same mentality to ICP.Lab... many VCs and investors were very impressed with what they saw…
Tim Hermann, Senior Partner Manager at DFINITY Foundation:
The Internet Computer Blockchain:
The DFINITY Foundation has brought the dream of a decentralized Internet to life with its groundbreaking creation, the Internet Computer. Say goodbye to slow, centralized systems and hello to a world where end-to-end decentralized solutions are possible. Welcome to the future of the Internet, where a whole new world of web-speed services is now possible.\
The DFINITY Foundation:
The DFINITY Foundation, headquartered in Zurich, is a not-for-profit organization focused on the advancement of the Internet Computer blockchain. Led by founder and Chief Scientist, Dominic Williams, the organization boasts a massive R&D team, with over 270 members spread across research centers in Zurich, Palo Alto, San Francisco, and Shanghai. With a track record of success, the team has published over 1564 articles, received 86,347 citations, and holds 191 patents. At the forefront of blockchain innovation, the DFINITY Foundation is dedicated to shaping the future of technology.
What’s Next?
🧑💻 If you're a developer and would like to discuss #ckBTC with someone who can answer your questions, this is the right person to talk to.
🚀 For existing web3 startups interested in incorporating #ckBTC into their product for explosive growth, make sure to reach out to the people who live and breathe growth
🏦 And for those who are passionate about decentralized finance (DeFi) and would like to understand how #ckBTC can be used to their advantage, make sure you follow the legend
Whether you're a developer, startup, or DeFi enthusiast, #ckBTC offers a variety of resources and support to help you get started with using this innovative token.