Core DAO and Element Wallet have joined forces to enhance Bitcoin's utility for users, offering innovative avenues for engagement beyond mere storage. This collaboration underscores user privacy and bolsters the security of decentralized finance (DeFi) tools like Bitcoin staking.
In a conversation with representatives from both platforms, BeInCrypto delved into how the focus on user privacy and improved staking functionality can open up fresh possibilities for participation in Bitcoin-oriented DeFi.
Diversifying Bitcoin's Applications
Looking ahead to 2025, the CORE team is set on creating novel use cases for Bitcoin holders keen on actively utilizing their BTC rather than leaving it dormant. Core accomplishes this by simplifying interactions between Bitcoin users and DeFi.
Core, a layer-1 blockchain integrated with Bitcoin and offering EVM compatibility, was unveiled in January 2023 and has since amassed a market capitalization exceeding $497 million.
CORE's Market Cap Trends Over the Last 3 Months - Source: BeInCrypto
Operating as a decentralized autonomous organization, the Core DAO backs the Core blockchain's growth, focusing on security, scalability, and decentralization through community-driven efforts.
Integrating Bitcoin's robustness with cutting-edge financial services seen in DeFi platforms, the Core DAO coined the term BTCfi to represent the array of decentralized financial services and apps built on a Bitcoin-based blockchain.
Enriching Bitcoin's value through enhanced protection and expanded utility via on-chain yield and a comprehensive dApp ecosystem, BTCfi sets the stage for a realm where Bitcoin's reliability intersects with DeFi's financial innovations.
Simultaneously, Core's EVM compatibility empowers developers to leverage familiar Ethereum tools for creating interoperable dApps, amplifying Bitcoin's versatility and catering to an array of user requirements, from basic BTC staking to intricate DeFi maneuvers.
Crafted by Bitcoin enthusiasts, Core's primary objective is to scale Bitcoin and unlock diverse use cases for all types of Bitcoin holders, be it those seeking minimal risks or those diving into the Bitcoin DeFi ecosystem with over 100 BTC-based DApps.
While ushering Core users into the realm of DeFi, Core leverages a three-pronged strategy to fortify its high-throughput blockchain architecture.
Upholding the Satoshi Plus Consensus for Robust Decentralization
To uphold Bitcoin's core tenets of decentralization and security, Core adopts the Satoshi Plus Consensus, seamlessly blending efforts from Bitcoin miners, CORE stakers, and Bitcoin Stakers.
Bitcoin miners bolster the blockchain's security by delegating their Proof-of-Work (PoW) mechanisms to a Core validator, fostering a harmonious synergy between securing Bitcoin and Core.
Complementing this is Core's adoption of a delegated Proof-of-Stake (dPoS) protocol, allowing CORE token holders to engage in network security by delegating their tokens to validators.
Furthermore, Core's Satoshi Plus consensus mechanism integrates non-custodial Bitcoin staking, enabling users to stake Bitcoin in their wallets using a time lock contract, thereby earning CORE tokens for fortifying Core's security without entering new trust dynamics.
While Core accentuates Bitcoin's functionality, Element Wallet focuses on user privacy and the secure management of digital assets.
Prioritizing User Privacy and Asset Security
While Core's architecture is rooted in transparency and decentralization, user privacy takes center stage with Element Wallet.
Element Wallet emerges as a multi-chain crypto wallet catering to seamless asset management and DeFi accessibility, with a focus on privacy solutions for users interacting with Bitcoin and other assets like TRON.
In response to privacy concerns, Element Wallet employs various mechanisms to safeguard user identities and financial data, including end-to-end encryption for secure messaging, ensuring that only the intended recipient can decrypt messages, shielding content from prying eyes.
By eschewing the storage of message contents and storing chats locally on users' devices, Element Wallet guarantees confidential communication channels, accentuated by in-chat peer-to-peer (P2P) transfers for safe and direct transactions between users.
At Element, user funds and seed phrases remain under the full control of users, underscoring the belief in empowering asset owners to determine their asset management strategies and trust configurations.
To facilitate seamless navigation of the Core blockchain, Element Wallet's design harmonizes user-friendly interfaces and pragmatic strategies for streamlined interactions.
Simplifying Web3 Navigations
Emphasizing the pivotal role of community in driving blockchain success, both Core and Element dwell on simplifying the complexities associated with Web3 technologies. Collaborating closely with the Core DAO and core team, the focus remains on enhancing user experience through streamlined UX solutions.
Element Wallet acts as a comprehensive entry point for Core chain-related activities, offering a unified wallet experience that caters to all user requirements, including crypto purchases, swaps, non-custodial Bitcoin staking, and secure communication channels.
Reflecting this ethos, the Element Wallet integrates Sparks, a dynamic system that quantifies contributions to the Core community's growth, fostering user engagement within the Core Chain ecosystem. Daily Spark allotments are based on user activity levels, incentivizing greater participation and interaction within the Core community.
By prioritizing user experience and community engagement, Core and Element aim to accelerate adoption and engagement within the burgeoning BTCfi sector, ushering in a new era of decentralized finance opportunities intertwined with Bitcoin's robust framework.