Core DAO and Element Wallet Join Forces to Expand Bitcoin's Utility

Core DAO and Element Wallet are collaborating to expand Bitcoin's utility for holders, offering new avenues for interaction beyond simple storage.

Core DAO and Element Wallet are joining forces to expand the possibilities for Bitcoin (BTC) holders. Together, they aim to introduce new avenues for interaction beyond simple storage, while prioritizing user privacy and maximizing the security of decentralized finance (DeFi) mechanisms like Bitcoin staking.

In an exclusive interview with BeInCrypto, representatives from both platforms delved into the details of their collaboration, highlighting how user privacy and enhanced functionality in staking can open up new opportunities for participation in Bitcoin-oriented DeFi.

Unveiling New Use Cases for Bitcoin Holders

For 2025, the CORE team is setting its sights on developing novel use cases to cater to Bitcoin holders who wish to actively utilize their BTC rather than keeping it perpetually stored away. Core achieves this by enabling seamless interaction with DeFi for Bitcoin users.

“A lot of people have been holding Bitcoin over the years and are totally happy with that. I get it, myself included, but there are also a lot of people who want to actually do something with their BTC and not just hold it. They want to actually put it to work, bring it into DeFi, take out a loan on it, or lend it out and earn some yield. Core basically allows for whatever you want to do with your Bitcoin,” explained Dylan Dennis, Contributor at Core DAO.

Designed to enhance Bitcoin’s utility while preserving its hallmark decentralization and security, Core is a layer-1 blockchain that integrates with Bitcoin and offers EVM compatibility. Having launched in January 2023, it has already achieved a market capitalization of over $497 million.

The Core DAO, a decentralized autonomous organization, supports and develops the Core blockchain. Its members pursue security, scalability, and decentralization through community-driven collaboration.

In describing decentralized financial services and applications built on a Bitcoin-based blockchain, Core DAO members coined the term “BTCfi.” This initiative combines Bitcoin’s renowned security and reliability with the innovative financial services found in DeFi platforms.

BTCfi enhances Bitcoin’s value by expanding protection and increasing utility via on-chain yield and a comprehensive dApp ecosystem.

Meanwhile, Core’s EVM compatibility enables developers to use familiar Ethereum tools for interoperable dApps. These dApps increase Bitcoin’s versatility and cater to diverse user needs, from simple BTC staking to complex DeFi activities.

“Basically, Core was created by Bitcoiners. The whole point of Core is to scale Bitcoin and unlock new use cases for every kind of Bitcoiner, whether you’re someone who wants to take no new risk, and just keep your BTC in your wallet. Then on the other side, there’s this whole Bitcoin DeFi ecosystem, with 100+ Dapps, all BTC-based. Whatever you want to do with your BTC you could do it with Core,” Dennis said.

While exposing Core users to DeFi, Core also employs a three-in-one strategy to secure its high-throughput blockchain.

The Satoshi Plus Consensus for Ensured Decentralization

To stay true to Bitcoin’s core principles of decentralization and security, Core employs a unique mechanism defined as the Satoshi Plus Consensus. This method involves active collaboration from Bitcoin miners, CORE stakers, and Bitcoin Stakers.

Bitcoin miners contribute to the security of the blockchain by delegating their Proof-of-Work (PoW) mechanisms to a Core validator. This non-destructive delegation of PoW allows miners to leverage their existing work without choosing between securing Bitcoin and Core.

Core’s security is also enhanced through a delegated Proof-of-Stake (dPoS) mechanism, which allows holders of Core’s native CORE tokens to participate in network security by delegating their tokens to validators.

Finally, Core’s Satoshi Plus consensus mechanism incorporates non-custodial Bitcoin staking.

“With the non custodial staking, you can stake Bitcoin in your own wallet by putting a time lock on it. It’s called a time lock contract and it’s a Bitcoin native feature. You lock it in that transaction, you include the validator you want to delegate to, and for helping to decentralize and secure the core network, you get paid out in Core tokens for doing so without any new trust assumptions. So, something that helps to secure Core also helps with the whole mission, which is to unlock new use cases,” Dennis added.

Though Core emphasizes Bitcoin functionality for its holders, the Element Wallet is in charge of user privacy and the secure management of digital assets.

Addressing User Privacy and Asset Security

While the nature of the Core blockchain remains decentralized and transparent, the same does not apply to user details.

Privacy is a crucial aspect for Bitcoin users and the crypto ecosystem in general, explained Bruna Brambatti, Marketing Manager at Element Wallet.

“You’re going to see a lot of people that have random handles. They’re not using their profile picture. They are using an NFT. People like to be private and want to keep their money private. Even though we have this open space with the