Summary
TLDR: The Bitcoin halving is coming soon, which may reduce miners’ revenue. Some believe transaction fees may not cover costs, leading to decreased network security. Solutions include integrating assets into DeFi services through layer-2 solutions and creating a Bitcoin-secured proof-of-stake economy. Trust Machines is focusing on improving transaction times, identity solutions, and wallet functionality between layer-1 and layer-2 for post-halving transactions.
Key Points
1. The Bitcoin halving is anticipated to occur in the second half of April this year, with concerns about miners enduring a revenue cut following the event.
2. Fisher Yu, co-founder of Babylon, notes the motivation behind early participation in Bitcoin’s proof-of-work security and the hope for transaction fees to cover miners’ operational costs over time.
3. Max Chamberlin, founder of Bifinity, warns that many bitcoin mining businesses could become unsustainable post-halving, emphasizing the importance of maintaining network decentralization.