BTCfi Ecosystem

Definition ∞ The BTCfi Ecosystem refers to decentralized financial applications and protocols built on or around the Bitcoin blockchain. These systems extend Bitcoin’s utility beyond a simple store of value. They enable users to engage in various financial activities like lending, borrowing, and trading using Bitcoin and its derivatives.
Context ∞ The BTCfi ecosystem is currently experiencing significant innovation with the advent of layer-2 solutions and sidechains. Discussions often center on enhancing Bitcoin’s programmability without compromising its core security principles. Future growth is anticipated through improved interoperability and a wider array of decentralized financial products.