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Cryptocurrency Ecosystem => Bitcoin Forum => Topic started by: Crypto_Somrat on October 16, 2020, 10:20:36 AM

Title: How does Bitcoin DeFi work?
Post by: Crypto_Somrat on October 16, 2020, 10:20:36 AM
Bitcoin DeFi works by basically allowing Bitcoin—a currency on one blockchain—to run on Ethereum’s very different, separate blockchain.

How? This is where things get a little complex.

You can’t use Bitcoin directly on Ethereum platforms—as mentioned before, the blockchains are different. In order to do so, the Bitcoin needs to be converted into a currency that represents Bitcoin but is really an Ethereum-based token.