The Flippening Ethereum Fans Weren't Expecting

One of the most discussed topics regarding the development of the Bitcoin blockchain is that of scalability solutions, which could allow it to serve

As Bitcoin’s market cap now surpasses $1.1 trillion, several new innovations are emerging. One such innovation is BitVM, which could enable the creation of rollups on the market-leading blockchain.

Bitcoin Core (BTC) sidechain contributor Brendan Sedo recently spoke to Cointelegraph about his enthusiasm for these different solutions at Korea Blockchain Week.

“If you look at Bitcoin, there’s over $1 trillion stored there. […] You could reasonably expect a lot of this capital to end up on another blockchain — especially with solutions like trustless bridges and rollups emerging,” Sedo said, adding:

“It is clear that we need to bring some of this liquidity to another blockchain and thus create more opportunities for Bitcoin.”

Related: Covenants, OP_CAT and OP_CTV: Everything You Need to Know About the Next Bitcoin Update

Highlighting the compromises made by these new infrastructures, Sedo noted that they have sparked much discussion and are widely criticized.

However, several of these infrastructures do not directly benefit from Bitcoin’s security. Operating mostly on proof-of-stake (PoS), they depend on a handful of actors or cryptocurrency holders, often with dubious and centralized tokenomics.

Bitcoin sidechain Core boasts the largest total value locked (TVL) at over $307 million, outpacing other infrastructures like Rootstock or Stacks (STX).

While these infrastructures do not benefit from Bitcoin’s security, they operate on PoS and depend on a few actors or cryptocurrency holders, often with dubious and centralized tokenomics.

We could also include Bitcoin spot exchange-traded funds (ETFs) in this analysis, which have over $17 billion in BTC under management, making them the second-largest infrastructure by TVL after Ethereum.

Precisely, only infrastructures where Bitcoins are actually stored without a trusted third party can be considered a Bitcoin overlay. To date, only the Lightning Network fits this definition.

Apart from the Lightning Network, infrastructures like RGB that rely on client-side validation could also provide near-infinite programmability and scalability.

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