How Bitcoin Script Limits Bitcoin DeFi (BTCFi)?

There has been a never-ending debate over what restricts Bitcoin’s participation in the DeFi landscape. Why is Bitcoin still a passive store of value despite its deep liquidity and being the oldest and the most secure blockchain network???

While Ethereum has a thriving DeFi ecosystem, Bitcoin remains out of this league. The primary reason? Bitcoin Script, the network’s underlying programming language.

This limited DeFi participation has raised concerns: Can Bitcoin participate in DeFi without altering its base layer??

Bitcoin Script - Explained

Whenever we talk about cryptocurrency or decentralization, Bitcoin is the topic we all are familiar with—however, not everyone is familiar with its underlying programmability language and technology.?

Bitcoin Script is nothing but the programming language Bitcoin uses and does everything. The stacks-based language coding is written and read in a left-to-right manner. The data is instructed and processed using the series of linear structures—stacks—arranged in LIFO (Last In, First Out) order.

Bitcoin Script is simply the language of instructions, guiding how users can access and manage the Bitcoin assets available on the network. What makes things more interesting is that the Bitcoin programming language is “Turing Incomplete” and that’s intentional.

Bitcoin’s strength is its simplicity, which comes at a cost—prioritizing security over flexibility. The limitation in the Bitcoin language prevents infinite loops and reduces security risks. Despite limitations, the script language is a critical essence of the Bitcoin ecosystem, enabling computers and programs to execute actions using Opcodes.

Opcode Operation serves as the backbone of Bitcoin's scripting language, specifying which and how to execute tasks. We are talking about controlling data flow, performing transactions, data storage, stack management, and cryptographic operations.

BTCFi vs. Ethereum DeFi – Why Bitcoin's Role is Limited?

Ethereum’s DeFi success is attributed to its full-fledged Turing-complete smart contracts functionality. This flexibility allows Ethereum-based protocols to dominate the DeFi landscape with a Total Value Locked (TVL) of over $46.3B. This enables protocols to;

• Automate execution through event-driven logic.
• High-end composability, where protocols interact seamlessly.
• Hold and manage assets within the contract itself.

Bitcoin, however, lacks these capabilities due to its scripting limitations and UTXO-based transaction model. This results in BTC-based DeFi must rely on:

• Limited on-chain logic?
• Federated or custodial solutions
• Off-chain coordination

As a result, Bitcoin’s role in DeFi is idle—it serves as a digital store of value rather than a productive yield-generating asset. Unlike ETH, which can be borrowed, staked, and used as collateral in on-chain DeFi, BTCFi is largely confined to;

• Custodial BTC staking mechanisms that require trusting intermediaries.
• Wrapped BTC tokens on Ethereum or other EVM chains with limited liquidity.
• Bitcoin-backed synthetic assets issued on federated sidechains.

Without a native way to execute trustless, permissionless smart contracts, BTCFi is inherently different from Ethereum DeFi in execution and design.

This is where Core DAO provides a breakthrough, enabling non-custodial BTC staking and DeFi participation while preserving Bitcoin’s security model.

How Core Expands Bitcoin’s DeFi Capabilities Without Changing Bitcoin?

Instead of modifying Bitcoin, Core DAO offers a non-custodial, Turing-complete, and EVM-compatible solution that brings DeFi to Bitcoin without altering or compromising Bitcoin’s security model.?

Core is a Layer-1 Bitcoin-aligned EVM-compatible blockchain network, bridging Bitcoin with Web3. Core transforms Bitcoin into a productive asset, the powerhouse of DeFi, and the future of financial evolution.?

While some solutions involve wrapping or federated bridges, Core preserves Bitcoin’s ethos of decentralization and security—inheriting its security while enabling full DeFi capabilities.

Bitcoin’s limited scalability and programmability have historically kept it secluded from the DeFi revolution, forcing BTC holders to accept limited functionality or wrap their assets, which introduces custodial risks.

Here’s how Core unlocks BTCFi’s full potential:

• Non-Custodial BTC Staking:?

Users can stake BTC in a non-custodial manner, directly participating in Core’s consensus mechanism without wrapping or trusting intermediaries. Unlike custodial staking models, Core ensures BTC remains in the user’s control, never leaving the Bitcoin network. This is fundamentally different from traditional BTC staking which requires users to deposit BTC into a lending pool.

• EVM-Compatible BTCFi Smart Contracts:

Core supports Solidity-based smart contracts, enabling lending, DEXs, and yield farming without altering Bitcoin—everything that was unsupported natively. Developers can build BTCFi applications with familiar Ethereum tooling.

• Dual-Staking Model:?

Core’s Dual staking model further unlocks higher staking rewards on staking CORE tokens alongside Bitcoin, bringing institutional-grade yield to BTCFi. Dual staking brings Bitcoin and Core communities together, enforcing Core’s position as the ultimate Bitcoin-consumer chain.

Conclusion: The Best of Both Worlds

Bitcoin’s programming language—Bitcoin Script—simplicity is both its strength and its limitation to enter DeFi. While Bitcoin Script prevents many attack vectors, it also restricts BTC’s ability to participate in yield-generating activities.

Core DAO changes this dynamic—not by modifying Bitcoin, but by expanding what’s possible while preserving its security model. As BTCFi grows, Core is positioned to play a critical role in making Bitcoin a yield-bearing financial asset, ensuring that BTC remains at the heart of decentralized finance.