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Over the past few years, many community members have advocated for a linkup between Bitcoin (BTC) and Cardano (ADA). Drawing on the positive notion of interoperability, a new research paper spotlighted by Cardano's validator "Stake With Pride" has teased how both chains can work together.

Bitcoin and Cardano in DeFi

According to the paper’s authors, to properly harness Bitcoin’s hashpower, a proof-of-stake (PoS) linkup is necessary. The authors proposed Babylon, a protocol combining the best proof of work (PoW) and proof of stake (PoS). Beneficial as this is, BTC can finally operate with more energy efficiency, while validation networks can enhance their security systems with this alignment.

Through Babylon, it is feasible for investors to HODL Bitcoin and earn Cardano staking rewards, as teased by Stake With Pride. While staking and yield farming are familiar, the link between Bitcoin and Cardano is as follows:

Cardano has always been touted as a highly technological blockchain. However, its ecosystem is touted as closed, considering it has little or no link with rival chains. This trend is gradually changing as Charles Hoskinson, and the growing number of developers within the ecosystem, are pushing to enhance its interoperability.

If Web3 innovators harness the Babylon framework, it might change the entire course of decentralized finance (DeFi).

Cardano making history

Beyond the prospect of interoperating with Bitcoin, Cardano has also recently made some positive ecosystem milestones. 

One of the most important is the Chang Hard Fork upgrade launch, which ushered in decentralized governance. With this, community members with ADA holdings can have a say in the chain's future direction. 

The entire layer-1 ecosystem is moving quickly, and there is strong competition for dominance. While Cardano is focused on decentralization, Ethereum's cofounder hinges on plans for The Verge, which will further decentralize the chain.

Per his proposition, the goal remains to improve the Ethereum validation system so that it can run on mobile devices, making it feasible for everyone.