Bitcoin holder's access to decentralized applications is enhanced with the introduction of a trustless bridge via BitcoinOS, integrating with Arbitrum L2. This innovation allows transactions on Ethereum to settle using Bitcoin, enabling BTC holders to engage with Ethereum's ecosystem without relying on a custodian like BitGo. The non-custodial bridge can increase confidence and participation from Bitcoin holders, as they can maintain control over their assets. Arbitrum's existing dominance as the largest Ethereum layer-2 network positions it to also become the largest Bitcoin L2 network. The Arbitrum Foundation anticipates significant Bitcoin liquidity to flow into DeFi and smart contract applications, transforming blockchain finance dynamics. Existing solutions, like WrappedBTC, which require third-party custody, limit access to only a small fraction of Bitcoin's total value, estimated at $12.6 billion. BitcoinOS founder Edan Yago expressed optimism regarding the dramatic growth potential for Bitcoin-based DeFi, drawing parallels to a rapid expansion in adoption and use cases that have been unfettered until now.

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