By
Temitope Olatunji
April 26th, 2024
Along with its entry into the Bitcoin L2 ecosystem, Tron DAO is preparing to release user-friendly wallets and toolkits to handle Bitcoin-based assets such as Ordinals and BRC-20 tokens.
Decentralized Blockchain platform Tron is celebrating a major milestone as the number of accounts in the platform has exceeded 220 million. This accomplishment coincides with the network’s contemplation of launching a Bitcoin Layer-2 (L2) solution, which would allow for the possible inflow of billions of dollars of liquidity into the Bitcoin network.
Tron’s Bitcoin Layer-2 Ambitions
Taking to the X platform, Tron’s founder Justin Sun revealed a roadmap for Tron’s Bitcoin L2 solution, enabling tokens and stablecoins transfer between Tron and Bitcoin.
“This integration will not only link TRON directly with Bitcoin but also facilitate access to over $55 billion in value to the Bitcoin network, thereby injecting financial vitality into Bitcoin,” Sun emphasized.
A spokesman for Tron hinted that plans to develop a wrapped Tether (USDT) would probably be part of the Bitcoin Layer-2 solution. Remarkably, the Tron network currently holds more than half of the $104 billion in USDT that has been issued across several blockchains.
Tron’s ecosystem integration with Bitcoin is expected to draw new users and increase the use of Bitcoin, especially in the Decentralized Finance (DeFi) sector. This integration is particularly noteworthy for Tether, as its rival Circle, stopped minting USD Coin (USDC) on Tron in February.
While Tron’s Bitcoin Layer-2 solution is still in its early stages, the platform already connects USDT and other tokens to Bitcoin utilizing established cross-chain protocols. Tron’s approach towards Bitcoin integration coincides with a surge in interest in improving Bitcoin’s functionality and scalability.
The community’s interest in developing Decentralized Applications (DApps) on Bitcoin highlights the potential to improve Bitcoin’s price. Furthermore, Tron said it plans to collaborate with different Bitcoin Layer-2 protocols, demonstrating a concerted effort to enhance network scalability and interoperability.
It is worth noting that Liquid-based Tether (L-USDT) is one of the few stablecoins denominated in US dollars that is currently circulating on the Bitcoin layer-2 network. CoinShares, a crypto investment firm forecasted the launch of a Bitcoin-based stablecoin this year that will compete with the speed and cost of other stablecoins in the market.
Tron’s Future Plans and Accomplishments
Along with its entry into the Bitcoin L2 ecosystem, Tron’s Decentralized Autonomous Organization (DAO), Tron DAO, is preparing to release user-friendly wallets and toolkits to handle Bitcoin-based assets such as Ordinals and BRC-20 tokens.
Moreover, Sun recently hinted at the potential future integration with Artificial Intelligence (AI), GPT computing, meme coins, and gaming finance. This is in addition to the prospects of launching a TRX-based Exchange Traded Fund (ETF).
At the moment, TRON can be found in well-known tracks like DeFi, Non-Fungible Token (NFT), stablecoin, metaverse, GameFi, cross-chain, DID, and Real World Assets (RWA). The overall market value of TVL and on-chain stablecoins is ranked second in the global public chain.