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Core DAO and Element Wallet are pioneering efforts to boost Bitcoin’s functionality, opening doors to innovative decentralized finance (DeFi) applications.
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The collaboration between these two platforms not only enhances DeFi access for Bitcoin users but also places a premium on individual privacy and security.
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“Our goal is to ensure that Bitcoin users can engage fully with DeFi without compromising their privacy,” noted Bruna Brambatti from Element Wallet.
Core DAO and Element Wallet unite to enhance Bitcoin’s utility and ensure user privacy, paving the way for innovative DeFi participation.
Expanding Bitcoin Use Cases
As part of its roadmap for 2025, the CORE team is committed to diversifying Bitcoin’s utility for holders who seek to actively utilize their BTC rather than simply store it. This is achieved through streamlined access to decentralized finance.
“A lot of people have been holding Bitcoin over the years and are totally happy with that. I get it, myself included, but there are also a lot of people who want to actually do something with their BTC and not just hold it. They want to actually put it to work, bring it into DeFi, take out a loan on it, or lend it out and earn some yield. Core basically allows for whatever you want to do with your Bitcoin,” explained Dylan Dennis, Contributor at Core DAO.
Core is unique in its approach, as it functions as a layer-1 blockchain that integrates seamlessly with Bitcoin while offering Ethereum Virtual Machine (EVM) compatibility. Since its launch in January 2023, the project has already garnered a market capitalization exceeding $497 million.
The Core DAO supports and develops the Core blockchain with a focus on community-driven collaboration, security, and scalability. Their initiative, termed BTCfi, aims to create decentralized financial services built on a Bitcoin-based blockchain. This initiative seeks to marry Bitcoin’s robust security with the innovative financial solutions found in DeFi.
This collaboration not only enhances Bitcoin’s overall value by broadening its transactional capabilities but also offers new opportunities for users to engage with decentralized applications.
Moreover, Core’s EVM compatibility permits developers to utilize established Ethereum tools to create interoperable decentralized applications (dApps), catering to a wide array of user needs, from basic BTC staking to complex DeFi integrations.
“Basically, Core was created by Bitcoiners. The whole point of Core is to scale Bitcoin and unlock new use cases for every kind of Bitcoiner, whether you’re someone who wants to take no new risk, and just keep your BTC in your wallet. Then on the other side, there’s this whole Bitcoin DeFi ecosystem, with 100+ Dapps, all BTC-based. Whatever you want to do with your BTC you could do it with Core,” Dennis said.
The Satoshi Plus Consensus for Ensured Decentralization
In alignment with Bitcoin’s foundational values of decentralization and security, Core utilizes a method known as the Satoshi Plus Consensus. This approach integrates contributions from Bitcoin miners, CORE stakers, and Bitcoin stakers, creating a robust security framework.
With this model, Bitcoin miners can enhance the broader network’s security without having to sacrifice their existing Proof-of-Work (PoW) contributions by delegating their validation responsibilities to Core validators.
This innovative approach also leverages a delegated Proof-of-Stake (dPoS) mechanism, allowing CORE token holders to bolster network security by delegating their tokens. Moreover, it incorporates non-custodial Bitcoin staking, providing users with an additional layer of operational security.
“With the non-custodial staking, you can stake Bitcoin in your own wallet by putting a time lock on it. It’s called a time lock contract and it’s a Bitcoin native feature. You lock it in that transaction, you include the validator you want to delegate to, and for helping to decentralize and secure the core network, you get paid out in Core tokens for doing so without any new trust assumptions,” Dennis explained.
While Core serves Bitcoin holders, Element Wallet focuses on protecting user privacy and the secure management of digital assets.
Addressing User Privacy and Asset Security
While the transparency of the Core blockchain enhances security, it can create concerns regarding user privacy. Bruna Brambatti, Marketing Manager at Element Wallet, emphasizes the importance of user privacy within the crypto space.
“You’re going to see a lot of people that have random handles. They’re not using their profile picture. They are using an NFT. People like to be private and want to keep their money private. Even though we have this open space with the blockchain, we’re never going to know who the owner of that money in that wallet is,” she explained.
The Element Wallet is designed for multi-chain crypto asset management, enhancing user access to DeFi while initially focusing on the Core ecosystem. To protect user identity and financial data, the wallet incorporates end-to-end encrypted messaging, ensuring that only the intended recipient can view the content.
Additionally, Element Wallet facilitates peer-to-peer (P2P) payment transfers directly within its messaging system, adding a layer of security and user-friendly functionality.
“We never, ever have access to anyone’s funds or their seed phrases. We do believe that the owners should have power over their assets and trust that they are theirs,” Brambatti added.
Breaking Down Web3 Complexities
The partnership between Core and Element centers on the community, with both organizations prioritizing user engagement and simplifying the onboarding process. Sean Schireson, Head of Product at Element Wallet, noted the essential role user experience plays in promoting broader adoption.
“We’re really focused on simplifying the kinds of Web3 complexities that are often found in the space today. As we work closely with the Core DAO and the core team, we find more opportunities to really make UX be at the forefront,” he explained.
The Element Wallet enhances user experience across the Core chain and enables users to perform various transactions within a single application, unifying functionalities for ease of use.
The Core team has introduced Sparks, a dynamic rewards system that incentivizes community involvement and delineates user contributions to the Core ecosystem. Active participants earn Sparks based on their engagement levels.
“What we want to do is make that entry point feel like a consumer app that you’ve used and loved before. And that’s really our gold element. We’re not trying to reinvent the wheel, but we’re definitely trying to put a new spin on an otherwise kind of saturated UX market,” Schireson concluded.
This focus on improving user experience and fostering community engagement aims to facilitate broader participation in the burgeoning BTCfi sector.
Conclusion
Core DAO and Element Wallet are steadfastly working to enrich the Bitcoin ecosystem by expanding its utility and prioritizing user privacy. Their initiatives illustrate a commitment to harnessing the potential of DeFi while ensuring security and a seamless user experience. The future of Bitcoin as a multifunctional asset looks promising as both organizations continue to innovate and attract new participants.
