Alex Dovbnya
Could this be the new bullish narrative that pushes the price of Bitcoin higher?
According to a recent Bloomberg report, multiple Bitcoin developers are currently exploring the idea of adding programmability to the leading blockchain.
This narrative could reignite the cryptocurrency’s rally, according to the business outlet. Bitcoin is currently trading at $66,750. It is down 9.5% from its record high that was set back in March.
Unlike rival blockchains of the likes of Ethereum, Bitcoin lacks such additional features as smart contracts that would make it possible to significantly expand its functionality.
Bitcoin development has been extremely conservative compared to other protocols. Its proponents have long refused to add new features since the largest cryptocurrency is viewed as hard money that is similar to gold. Moreover, the slow and steady approach to development can be explained by the high level of decentralization: it is much easier for relatively centralized altcoins to implement changes.
However, this extremely conservative approach might be taking a backseat following the success of the Ordinals protocol, which makes it possible to inscribe NFTs onto Satoshis. Now, developers are looking for new ways to expand Bitcoin’s programmability.
Bitcoin could get Ethereum-like smart contracts with the OP_CAT proposal that is currently under consideration. Notably, Satoshi Nakamoto himself ditched this functionality due to concerns about significant memory usage.
Meanwhile, Bitcoin-native application developer Arch Labs, which raked in $7 million in funding, is currently working on a solution that would make it possible to bring Solana apps to the Bitcoin network.
OrdinalsBot founder Toby Lewis predicts that Bitcoin could even end up emerging as the new DeFi leader.