Key Points
- Two significant updates have occurred in the Bitcoin ecosystem in 2024, the launch of spot Bitcoin ETF and the Bitcoin halving event.
- Bitcoin developers predict that the next major Bitcoin price rally will be triggered by ‘programmability’.
In 2024, the Bitcoin ecosystem has seen two major updates. The first was the introduction of the spot Bitcoin ETF in January, followed by the Bitcoin halving event in April. The launch of the spot Bitcoin ETF led to a strong rally, with Bitcoin’s price reaching an all-time high in March. However, the positive impact of the Bitcoin halving has yet to be fully realized by investors. Bitcoin developers have suggested that ‘programmability’ will be the key driver for the next significant Bitcoin price rally.
Many people see Bitcoin as a digital equivalent of gold, a valuable asset held primarily for potential appreciation rather than daily transactions. However, unlike Ether, Bitcoin does not have a seamless integration of smart contract functionality. Over the years, developers have tried to address this limitation in various ways, such as introducing Bitcoin “Layer 2” networks like Lightning to improve the scalability of applications like payments. However, these solutions are not always reliable, with the bridges connecting different networks being vulnerable to hacks.
Enhancements to Bitcoin Network
In recent months, positive changes have been observed. For instance, the introduction of Bitcoin ordinals allows users to create non-fungible tokens (NFTs) embedded into Bitcoin’s smallest denominations, Satoshis. A developer known only as Domo introduced BRC-20 tokens, which use the same inscription mechanism to mint tokens on the Bitcoin blockchain.
These advancements have motivated developers to further enhance the programmability of the Bitcoin blockchain. The Bitcoin community is now exploring innovations like OP_CAT, which proposes a network software upgrade to boost the programmability of the Bitcoin blockchain. This upgrade aims to address Bitcoin’s current limitations. Meanwhile, the Layer-1 Foundation, led by Domo, is developing a programmable module for the BRC-20 metaprotocol. This module will allow the storage of messages in a code layered on the Bitcoin blockchain, enabling smart contract-like computations, similar to those available on networks like Ethereum.
In addition, startup Arch recently secured $7 million in funding to support Bitcoin app development. Arch’s platform aims to enable applications from networks like Solana to be ported onto Bitcoin, fostering innovation within the ecosystem. Arch’s platform, which is expected to be available to all developers soon, has already attracted around 20 developer teams working on various applications. These include borrowing and lending against Ordinals, decentralized exchanges, and stablecoins.
Jeff Garzik, a former Bitcoin core developer, stated that the increase in Bitcoin programmability is expanding Bitcoin’s reach. This not only boosts the Ethereum ecosystem but also introduces fresh competition.
