** Bitcoin Upgrade Could Unlock DeFi Potential, But Risks and Debate Surround Introduction of OP_CAT Code
A long-dormant string of code called OP_CAT could be the key to unlocking the true potential of Bitcoin for decentralized finance (DeFi) and potentially rivaling Ethereum's DeFi activity. The upgrade, which was originally introduced by Satoshi Nakamoto but later removed due to security concerns, has gained traction among advocates who see it as a crucial ingredient to the network's survival in the long run.
However, critics argue that the current swathe of Bitcoin sidechains doesn't settle natively to the network and therefore can't fundamentally allow for the positive feedback loop of activity needed to propel Bitcoin to rival Ethereum in DeFi. They also warn that introducing OP_CAT could lead to a short-term solutions mentality and neglect the need for a thriving L2 ecosystem.
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