DeFi Technologies CEO on the industry’s first Bitcoin yield-bearing ETP

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As an analyst with a background in blockchain technology and financial markets, I’m excited about the innovation represented by the Valour Bitcoin Staking ETP. This product is significant because it bridges the gap between Bitcoin’s Proof-of-Work (PoW) consensus mechanism and yield-bearing staking mechanisms, which have traditionally been exclusive to other cryptocurrencies.

I had a conversation with Olivier Roussy Newton, the CEO of DeFi Technologies, for Crypto.news. We delved into the intricacies of the Valour Bitcoin Staking ETP, a groundbreaking financial instrument that combines the benefits of Bitcoin with the yield-generating capabilities of staking mechanisms.

Bitcooin owners have typically been unable to take advantage of staking benefits that come with other digital currencies because Bitcoin operates under the Proof-of-Work (PoW) agreement. In simple terms, PoW necessitates miners to work through intricate mathematical problems in order to authenticate transactions and fortify the network’s security.

As a crypto investor, I can tell you that due to the vastness of the Bitcoin network, a significant amount of computational power is necessary to function properly. However, this requirement comes at a cost: an enormous amount of electricity is consumed during the mining process.

Instead of Proof-of-Work (PoW), where computational power determines validation eligibility, Proof-of-Stake (PoS) uses the quantity of coins held by users for validation. Validators in a PoS system are selected based on their coin holdings and readiness to act as collateral.

As a token holder and stakeholder in this system, you can passively generate returns just by keeping your tokens within the platform. This method is not only more energy-effective but also easier to access compared to traditional methods.

As a Bitcoin analyst, I’d put it this way: In contrast to my perspective, Bitcoin’s Proof of Work (PoW) system grants rewards in the form of new coins and transaction fees to miners who effectively solve complex mathematical puzzles. Yet, only those with the financial means to cover the inherent costs linked to Bitcoin’s method are eligible for these rewards.

As a result, Bitcoin investors primarily depend on price increases for earning profits, while overlooked are the yield-generating mechanisms present in Proof of Stake (PoS) systems.

As a analyst, I’ve observed that recent advancements aim to bridge the gap between passive investment and active participation in the Bitcoin network. One such solution is the implementation of Bitcoin staking on blockchain networks like Core Chain. By integrating aspects of both Proof of Work (PoW) and Proof of Stake (PoS), these networks enable users to secure the network and earn rewards, thereby creating a more inclusive and dynamic ecosystem for Bitcoin participants.

The Core Chain’s protocol, called Satoshi Plus, enables Bitcoin owners to generate returns on their BTC through staking without relinquishing custody or surrender of control over their assets. Simultaneously, they engage in network functions to secure rewards.

Holding Bitcoins now provides a method for earning passive income without undermining Bitcoin’s foundational security features based on Proof of Work (PoW).

The Valour Bitcoin Staking ETP offers investors a safe and controlled route to receive staking rewards in Bitcoin by leveraging the latest technology.

Newton explains how this could transform the Bitcoin investment landscape.

Certainly!

Valour is at the forefront of offering regulated crypto products, reaching a wide range of users. They identified a problem with Bitcoin (BTC) products: they don’t generate income or come with significant risks to earn yields. After discovering the advantages of Core Chain’s Non-Custodial BTC Staking, Valour saw an opportunity to provide its clients with yield-generating Bitcoin without introducing new risk factors.

How does the BTC staking program on Core Chain function? What ensures its security and efficiency?

Staking Bitcoin (BTC) on the Core blockchain allows this prized digital asset to contribute to the security of the Core chain. Notably, BTC staking leverages unique Bitcoin functionalities such as absolute time-locks to guarantee that staked BTC remains within the Bitcoin network. In simple terms, users deposit their Bitcoin onto the Bitcoin blockchain, employ it to cast ballots for validators on the Core Chain, and subsequently collect rewards from these validators as they fortify the Core Chain while the Bitcoin remains locked. Consequently, Bitcoin strengthens the Core Chain without having to leave its own network. BTC staking forms part of Satoshi Plus, which is the consensus mechanism of Core Chain. When Valour stakes Bitcoin with Core Chain, they are taking part in the selection of trustworthy validators who subsequently construct blocks on Core Chain.

As a researcher studying different yield-generating platforms, I’m interested in understanding what sets the Valour Bitcoin Staking ETP apart from other options like Celsius and BlockFi. What unique features or benefits does it provide to investors that distinguish it from these competitors?

As a researcher, I’d like to emphasize the importance of maintaining a critical perspective when it comes to investing in crypto. With that said, it’s worth noting that Valour stands out from other players in the space, such as Celsius or BlockFi, for several reasons.

As a researcher studying the intricacies of the Bitcoin system, I am frequently asked about the role Bitcoin miners play in the Core Chain network and the implications of their involvement on the network’s security and reward structure.

As a Bitcoin analyst, I’d like to explain how Bitcoin miners and mining pools can participate in Core Chain through delegation. Similar to BTC stakers who delegate their BTC to elect validators on Core Chain, miners and pools can delegate their hash power. In return for their contribution to Satoshi Plus, they receive CORE rewards.

As a seasoned crypto investor, I’m always eager to delve deeper into the technical intricacies that drive the blockchain landscape. Regarding your question about the “Satoshi Plus” consensus mechanism and its impact on Bitcoin’s Proof of Work system, let me break it down from my perspective.

Satoshi Plus delivers tangible value back to Bitcoin stakeholders through a variety of means. First, Satoshi Plus rewards Bitcoin miners for delegating their hash power, thus further incentivizing Bitcoin miners to secure the Bitcoin Network. Secondly, Satoshi Plus’ BTC staking brings native yield to Bitcoin for the first time in history. Bitcoin now has staking rewards like Ethereum without compromising on any of its design principles.

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2024-05-20 14:38