Although Bitcoin (CRYPTO: BTC) remains the most valuable cryptocurrency in the world, it lacks much of the functionality other cryptocurrencies possess today, particularly smart contract capabilities. Without smart contracts, Bitcoin holders are unable to directly participate in the rapidly growing decentralized finance (DeFi) economy, where users engage in lending, borrowing, yield farming, and even buying non-fungible tokens (NFTs).
But Coinbase‘s (NASDAQ: COIN) recent innovation could change this dynamic, unlocking Bitcoin’s dormant potential to reach new heights. Here’s why the launch of its cbBTC is a game changer for Bitcoin and its holders.
What is cbBTC?
Bitcoin can be compared to an old-fashioned telephone — highly reliable, but limited in functionality. In contrast, newer cryptocurrencies function more like smartphones, letting users engage with a wide range of innovative applications across the…
