Jack is bringing DeFi to Bitcoin
A few days ago, Jack Dorsey announced on Twitter that his latest project was working on a hardware Bitcoin wallet. You can read more about it here. Then later yesterday, he announced that Square is moving to bring DeFI to Bitcoin. This announcement was met with a lot of backlash from the Ethereum community about how Jack obviously ignores already made solutions only to build another one and quite rightly so.
An open developer platform that makes it easy to create non custodial, permissionless decentralized financial services does sound like Ethereum to me, except ofcourse Jack knows something that we don’t.
On another front, this takes applicability on Bitcoin to a whole new level. It is a common knowledge that Bitcoin is the most decentralized blockchain in existence. This level of decentralization brings unmatched levels of security and unfuckwithability but it’s not without few trade offs like inability to be programmable in ways like Ethereum is, especially on its first layer. If this is pulled off, it means DeFi on Bitcoin will have amazing levels of security and decentralization.
While I think this is a big win for Bitcoin and crypto in general, I also have a ton of questions like what about The need for speed(pun intended) of transactions, fees, energy requirements....in my honest opinion I prefer to see collaborative approach in making pre existing systems better than venturing into a new paradigm already especially when it has to do with a focus on an established system that already has its own focus.
Bitcoin serves its purpose as decentralized permissionless peer to peer monetary system as was created by Satoshi. It is successful as that, why need to complicate it further? I’m certainly not comfortable with how Jack plays, this is the same way he would rather create a decentralized media, Bluesky, rather than collaborate with Hive to make things better. Jack needs to get off his high horse and do better, really. Open source is about collaboration but what do I know.
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