Bitcoin pioneered the cryptocurrency journey in 2009 to achieve decentralized finance. Its goal was to facilitate the peer-to-peer online transfer of funds without being monitored by a centralized financial institution. Crypto Lists looks into whether Bitcoin can compete in the Ethereum-dominated smart contract space, especially after talk of ‘the flippening’.

The Bitcoin currency (BTC) received gradual success and then burst into the mainstream as a cultural earthquake. Later, it was joined by the highly competitive Ethereum network and accompanying Ether (ETH) crypto in 2015 that provided more use cases, including smart contracts.

Differences between Bitcoin and Ethereum

Ethereum’s entry offered a wider scope to Bitcoin’s focus as it also enables dApps and smart contracts with recognizable differences in speed, sustainability, and accessibility. All these features are down to the consensus mechanism that their ecosystem use.

Bitcoin uses the Proof of Work (PoW) consensus mechanism to validate and record transactions while Ethereum (as of fall 2022) uses the Proof of Stake (PoS). The PoW method is often under criticism over the energy requirements during the mining process. Alternatively, the PoS model is widely preferred due to its environmental friendliness and speed of transactions.

Bitcoin Moving Into Smart Contracts and DeFi

The Ethereum blockchain has thrived as the front-runner in supporting smart contracts, DeFi, DAOs, and NFTs. Other blockchains such as Solana and Cardano are prominent for the same reason. What many are not aware of is that Bitcoin has had significant developments to enable smart contracts recently.

Bitcoin initially used the Script language to write various smart contracts, including Pay-to-Public-Key-Hash, Multisignature, and Time-Locked smart contracts. These contracts had limitations for Bitcoin to compete with the more established smart contracts. Transactions via Bitcoin were slow and hard to scale.

Bitcoin’s Taproot Update in 2021 increased Bitcoin’s flexibility and privacy but was not effective on its own. Layer 2 solutions built on the Bitcoin blockchain also partially solved transaction speed and scaling issues. The Lightning Network on layer 2 facilitates 1 million tps and makes micropayments viable as it operates off-chain. Other sidechain networks such as the Liquid Network, RSK labs, and the Mintlayer also applied to improve Bitcoin for smart contracts and DeFi but fell short in their application.

Rating: 9.5/10
Supply: 18,925,000 / 21,000,000
Release date: January 3, 2009

Description: Buy BTC, the biggest and most important cryptocurrency in the world.

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

Its scalability efforts with the Lighting Network facilitate low-cost off-chain transactions. Bitcoin’s Lighting Network has already developed Block Cash App, RGB, LN Markets, Sphinx Chat, Zion, and Impervious. These projects fall short in their low routing fees and vulnerability to attacks. Bitcoin’s sidechains, including Liquid Network, RSK Labs, and Mintlayer have also promoted smart contracts via Bitcoin but do not feature the intrinsic security of Bitcoin.

The Stacks blockchain has assisted Bitcoin’s venture into smart contracts, DeFi, DAO, and NFTs by connecting to it through Proof of Transfer (PoX). It utilizes the Clarity language to create smart contracts on slacks which addresses syntax limitations on the Bitcoin blockchain. Stacks also provide micro blocks in mining that enables faster transactions. It also enables the creation of DeFi and NFT marketplaces while exploring the security and capital of Bitcoin. This provides an avenue to develop the largest ecosystems of Bitcoin applications.

Bitcoin to Compete with Other Smart Contract Blockchains

Bitcoin has positioned itself with its recent development on its scalability and transaction speed to compete in enabling various Web 3 innovations. These include DeFi, DAOs, and NFTs.

Stacks seem to strengthen Bitcoin to compete with other smart contract blockchains by executing them on its own blockchain and using Bitcoin for settlement. This resolves scalability. Stacks’ PoX ensures that the smart contract executed on its blockchain benefit from Bitcoin’s security. Stacks’ Clarity language is also much simpler for developers. The integration of Stacks into Bitcoin has propelled it into the largest Web 3 ecosystem on Bitcoin. It has achieved over 350 million monthly API requests and 2500 Clarity Smart contracts.

Despite these significant achievements, Bitcoin is still some way off the leading smart contract blockchain, Ethereum. Ethereum has over 4000 monthly active developers while Bitcoin has 400. Nonetheless, Stacks has developed several DeFi and Web 3 projects such as Alex, Arkadiko, and City Coins. NFT projects on Stacks include STX NFT, Superfandom, Layer, and Boom.

Bitcoin Facing the Flippening Discussion

Bitcoin’s feature in discussion on smart contracts is already a great achievement. It has implemented various solutions to catch up with established smart contracts, including Ethereum, Solana, and Cardano. It happens to find its feet. In crypto, things change fast. It certainly can compete in the smart contract space via stacks, the lighting network, and other features as it streamlines its path. It maintains its position as the leading cryptocurrency while expanding its appeal beyond a store of value and transfers.


Rating: 9.36/10
Number of instruments: 624+ instruments

Description: Sign up to one of the best and most easy-to-use crypto platforms!

Risk warning: Trading, buying or selling crypto currencies is extremely risky and not for everyone. Do not risk money that you could not afford to loose.

by Our Certified Author
Bitcoin Newsflash
    Top analyst reveals his price target for Bitcoin in 2023...Top analyst reveals his price target for Bitcoin in 2023...
    Thursday, 19 Jan 2023 8:29 am
    An analyst who made his name correctly predicting the 2021 crash - you know, the one that begun the bear market - says that the top target for this year is $42,000. 'Dave the Wave' says this is a good estimate as the BTC market matures and possibly moves to more irregular patterns. If Bitcoin (BTC) follows its usual cycle then the halving event will occur in about 15 months from now, which means it should soar in 2024 with more in store in '25...
    Read the full newsflash

    Is the bear market proper finally over? History suggests soIs the bear market proper finally over? History suggests so
    Saturday, 14 Jan 2023 7:56 am
    The bear market may have bottomed out in the wake of the FTX's bankruptcy, if various online analyses are to be believed. In a similar pattern to that of 2019 - the year prior to the last Bitcoin halving event - the leading crypto coin has shattered bearish patterns. By touching $21,000 BTC has broken a very significant line of resistance, a line that many 'permabears' online were expecting it not to pass. Money is now flowing into altcoins, which is only good for the market as a whole. Want to buy Bitcoin? Sign up for Coinbase now, one of the most reputable and regulated crypto plaforms

    BTC surges above $17,000 with altcoins following its leadBTC surges above $17,000 with altcoins following its lead
    Monday, 9 Jan 2023 8:29 am
    Are we in the first stages of a Q1 bull run for the crypto market? Some online obervers believe so, while others are skeptical and calling this a bull trap. However, what can be seen at present is BTC pulsing past $17,000 for the first time in around a month. And, most altcoins are following in its wake, as is normally the case...
    Read the full newsflash

    There were over $8tn in Bitcoin transactions made in 2022!There were over $8tn in Bitcoin transactions made in 2022!
    Wednesday, 4 Jan 2023 12:35 pm
    You read that right. Eight trillion dollars worth of transactions were made using the Bitcoin network last year. An incredible number considering the bear market wobbles experienced by BTC and all the altcoins in the past twelve months. The world's original crypto continues to thrive,...
    Read the full newsflash

    Bitcoin to reach $2m by 2028? Some experts say so!Bitcoin to reach $2m by 2028? Some experts say so!
    Wednesday, 28 Dec 2022 12:59 pm
    Noted Bitcoin Maximalist Larry Leopard has said Bitcoin (BTC) could "easily" reach $2 million per coin between now and 2030, perhaps even within the next six years...
    Read the full newsflash

Recent crypto sites
Recent crypto coins
Copyright © 2019-2022, by Crypto Lists Ltd ( Company name: Crypto Lists Limited. Address: 5 Upper Montagu Street, LONDON W1H 2AG, England.
Jump to top