Bitcoin’s Next Rally Expected to be Driven by ‘Programmability,’ Say Developers

Bitcoin Developers Anticipate “Programmability” to Trigger Next Bitcoin Rally


Ruholamin Haqshanas
Last updated:
May 20, 2024 03:33 EDT
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2 min read


A team of developers envisions that introducing programmability to the Bitcoin blockchain could ignite the next rally for the leading cryptocurrency.
While Bitcoin is presently regarded as digital gold, primarily serving as a store of value, developers argue that incorporating programmability would unlock a wide range of functionalities and applications.
Unlike its competitor Ether, which allows for the creation of smart contracts and the development of decentralized applications on the Ethereum network, the Bitcoin blockchain lacks the capability to support such features.
Throughout the years, developers have tried to overcome this limitation by creating “Layer 2” networks like Lightning, aimed at scaling Bitcoin for payment applications.
However, many of these solutions have proven to be unreliable, and the associated bridges used to transfer tokens between networks have been vulnerable to hacks, leading to user skepticism.
Developers Focus on Enhancing Bitcoin’s Programmability
Despite the lack of widespread adoption for payment purposes, developers have recently made progress in enhancing Bitcoin’s programmability.
Projects like Bitcoin Ordinals, which enable the creation of non-fungible tokens by embedding data onto satoshis (the smallest denomination of Bitcoin), have paved the way for further advancements.
The introduction of BRC-20 tokens, proposed by an anonymous developer named Domo, has sparked a quest for ways to further enhance Bitcoin’s programmability.
Proposals like OP_CAT, a potential software upgrade to the Bitcoin network, are being considered to facilitate easier implementation of programmability.
Startups like Arch, which recently raised $7 million in funding, and the Layer 1 Foundation are actively working on solutions to enable greater programmability in Bitcoin.
Arch aims to run an application platform on top of Bitcoin, potentially allowing apps from the Solana network to be transferred onto Bitcoin.
The Layer 1 Foundation is developing a programmable module for the BRC-20 metaprotocol, which enables the storage and execution of code on the Bitcoin blockchain.
These initiatives have attracted the interest of approximately 20 developer teams who are building apps for borrowing, lending, decentralized exchanges, stablecoins, and more.
TVL on Bitcoin DeFi Market Reaches $1 Billion
While some members of the Bitcoin programming community remain skeptical about the future of Bitcoin’s programmability, believing that Layer 2 solutions will prevail, these new ventures are banking on the potential influx of decentralized finance (DeFi) apps on Bitcoin.
Currently, the total value of tokens locked in the Bitcoin DeFi market reaches around $1.1 billion, significantly lower than Ethereum’s $52.7 billion.
However, proponents of Bitcoin’s programmability envision a future where the Bitcoin DeFi ecosystem could rival or even surpass Ethereum’s, potentially driving substantial growth in the crypto market.
It is worth noting that some analysts have turned bullish on Bitcoin following weeks of consolidation.
Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, predicting a potential return to the highs of $74,000.
In a recent note, the firm stated that it has observed significant buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.
Similarly, technical analyst Rekt Capital believes that Bitcoin has emerged from the post-halving “danger zone” and entered an accumulation phase, as evidenced by weakening selling pressure.
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