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The cypherpunks talked about DAOs even before Bitcoin existed, and you can't have DAOs without DeFi. Bitcoin is cool, but isn't the only thing.

• once_inc 4y ago
  DeFi is however possible on Bitcoin, and the decision for pretty much every Defi company to build it on another chain that is a) less decentralized b) less secure or c) less permissionless means that all of those products inherit those risks. DeFi is crippled by the decisions their creators made at the start. Bitcoin is the hardest, most secure cryptocurrency. Building on top of it means being cautious and careful, lest you lose tokens of actual worth, as opposed to tokens that have value solely because your own system uses it.
  • stefanha 4y ago
    Can you explain in more detail how DeFi is possible with Bitcoin? I thought that smart contacts in particular are not possible due to Bitcoin Script's limitations?
    • jl2718 4y ago
      A simple way to do this is to lock up coins on a lightning channel and then use that state as input to a side chain. This would probably require some form of massive multisig to form output consensus, which is a lot more efficient with Schnorr signatures, but not great. Bitcoin could become Turing-complete, private, and very efficient with the addition of a few op-codes required in zero-knowledge verification. This would probably lead to a hard fork because the “industry” would not accept it.