These 3 protocols are changing the way Bitcoin works.

Binance's Navigating the Inscription Landscape report discusses three protocols that could further expand Bitcoin's (BTC) footprint into the non-fungible token (NFT), decentralized finance (DeFi) and hardware sectors.

In the year In 2023, the Bitcoin ecosystem saw a transformational development through the rise of blockchain and BRC-20 tokens, which redefined the capabilities of the network. These developments ignited a market frenzy and a speculative frenzy reminiscent of meme coins had a significant impact on transaction activity and payments on the Bitcoin network.

3 Protocols That Could Change the Bitcoin Network

Bitcoin articles, while still emerging, have expanded into various sectors including DeFi, NFTs and tooling. According to Binance, this can be seen in several innovative projects that have come to the fore.

BitSmiley, for example, represents a significant development in Bitcoin's DeFi infrastructure by combining stablecoins, lending and derivatives into a unified protocol. The launch of bitUSD, a BTC-backed stablecoin, marks a major step forward in integrating common financial instruments into the Bitcoin ecosystem.

On the other hand, Likudium is a new peer-to-peer lending protocol. It allows loans using Bitcoin assets like notes and BRC-20s as collateral. This shows that interest in the Bitcoin network is increasing in DeFi. It also emphasizes the economic potential of inscriptions.

“Similar to the operation model of other peer-to-peer lending platforms, Likudium allows borrowers to confirm their terms based on agreed terms, while lenders offer BTC loans that match their risk-reward preferences,” Binance explained.

Additionally, Binance Liquidium revealed that it has facilitated more than 118 BTC transactions. Since its inception, it has processed over 2,700 loans that have been completed or are currently in process.

Read more: What are BRC-20 Tokens? Everything you need to know

Finally, the portal stands out as a cross-chain liquidity solution with a focus on decentralized exchange and wallet services. By facilitating the exchange of BRC-20 to other chains, the portal highlights the possibility of integrating Bitcoin into the wider blockchain ecosystem, increasing its use and accessibility.

The impact of scripts and BRC-20s extends beyond Bitcoin, with several EVM-compatible chains adopting similar protocols. Although these chains have the ability to control fungi and non-perishable marks, the inscriptions have seen significant marketing activities driven in part by speculative interests.

Read more: Bitcoin NFTs: Everything you need to know about the tokens

However, critics and supporters of BRC-20s offer different views, the former point to network congestion and higher fees, while the latter see them as a golden opportunity for the evolution of Bitcoin, especially to increase the efficiency and security of the ecosystem.