DeFi on Bitcoin. I don't get it, how it works?!

[Unsoldier]

Hi there, tryna figure out this DeFi stuff, not sure if this post fits here or should go in beginners section.

Anyway, BTC is like the OG, king of crypto, but because it's old as hell tech, it ain't as fast as ETH and kinda nerfed in features. So now they pushing Layer 2 on Bitcoin and DeFi on Bitcoin to fix that.

Does it actually work? Where can I read up on how the tech and mechanics work? Any solid examples?

Sry if these are dumb af questions, still learning.

 

[root777]

Quick rundown: BTC itself doesn't change, Layer 2 protocols build on top. Think Lightning Network but for defi. Main ones rn:

• RGB for smart contracts
• Stacks for dapps
• RSK for eth-like stuff

 

[Unsoldier]

ok but like... where does the btc actually go when you use these?

 

[CryptoDada]

ok but like... where does the btc actually go when you use these?

Your BTC stays on main chain but gets "locked" in special contracts. L2s then use special math magic (zk proofs usually) to let you use representations of that BTC for defi stuff.

 

[deantherat]

ser just bridge to eth like everyone else

 

[Unsoldier]

tried bridge once fees killed me tho

 

[bobchain]

fees still better than getting rekt on some experimental btc defi tbh

 

[P@y_D@y]

unpopular opinion but btc defi actually making progress. stacks tvl up 300% since last year

 

[Btcalysis]

Been tracking RGB protocol adoption - seeing interesting growth patterns. Around 180M locked last month, mostly in basic lending.

 

[Bo$$]

waiting for btc maxis to call this "not real bitcoin"

 

[ETH.lord]

imagine still trying to make btc do defi in 2025 when eth exists

 

[proxytom]

@ETH.lord username checks out

 

[hack3rcon]

checked some RGB contracts... security looks solid but UI gonna confuse tf outta normies

 

[Serenity]

eli5 what's RGB? kept hearing about it lately

 

[root777]

Iut's like coloring your bitcoin with special features. Each "color" can do different defi stuff - lending, trading, whatever. All while keeping btc's security.

 

[Millicent]

lost me at "special math magic" lmao but fr where can I actually try this?