Amara is a farmer in rural Kenya. Banks require collateral or credit history she lacks for a $5,000 equipment loan. A DeFi protocol lets her lock Bitcoin as collateral and borrow stablecoins at 8% instead of 25% bank rates (or loans she can't get). What does this use case reveal about DeFi's value?

DeFi's code-based lending removes gatekeeping. Amara doesn't need a bank's permission or relationship history—just collateral and code. This financial access to 1.7 billion unbanked people is DeFi's revolutionary potential.

NFTs are unique digital items, often collectible or utility tokens.

Sidechains/Layer 2 exist to…

They add features or scaling while settling back to Bitcoin.

DeFi and NFTs on Bitcoin

8 min readarticleIncludes quiz · 3 questions

New layers and protocols bring decentralized finance (DeFi) and digital collectibles (NFTs) to Bitcoin.

Simple definitions:

•DeFi: Financial apps without central companies.
•NFT: Unique digital item recorded on a ledger.
•Sidechain/Layer 2: Separate networks secured by Bitcoin.
•Ordinals: Method to “inscribe” data on sats.

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