Core DAO and Element Discuss the Role of Privacy and Staking in Bitcoin’s Evolution

Source Beincrypto

Core DAO and Element Wallet are collaborating to expand Bitcoin’s utility for holders, offering new avenues for interaction beyond simple storage. This partnership emphasizes user privacy while aiming to maximize the security of decentralized finance (DeFi) mechanisms like Bitcoin staking.

BeInCrypto discussed with representatives from both platforms to explore how user privacy and enhanced functionality in staking can create new opportunities for Bitcoin-oriented DeFi participation.

Expanding Bitcoin Use Cases

For 2025, the CORE team aims to develop new use cases for Bitcoin holders who wish to use their BTC rather than keep it perpetually stored. Core achieves this by enabling Bitcoin users to interact easily with DeFi.

“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 decentralization and security, Core is a layer-1 blockchain that integrates with Bitcoin and offers EVM compatibility. Launched in January 2023, it has achieved a market capitalization of over $497 million.

CORE market capCORE Market Cap in the Past 3 Months. Source: BeInCrypto

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

Members of the Core DAO used the term BTCfi to describe decentralized financial services and applications built on a Bitcoin-based blockchain. This initiative combines Bitcoin’s security and reliability with 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 uses 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 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 blockchain, we’re never going to know who the owner of that money in that wallet is,” she said. 

Element Wallet is a multi-chain crypto wallet for seamless asset management and DeFi access. Though it’s compatible with different crypto assets like Bitcoin and TRON, it was initially built for Core participants and acts as the first and primary interface for the Core blockchain.

To address user privacy concerns, Element Wallet uses various mechanisms to protect identity and financial information. Element’s messaging uses end-to-end encryption for user privacy. Only the recipient can decrypt messages, protecting content from third parties.

While Element does not store these messages’ content, it maintains a record of communication between users, excluding the actual message content. The messages themselves are stored locally on the users’ devices.

Element also integrates in-chat peer-to-peer (P2P) transfers. Users can send payments or payment requests within these chats, enhancing security and clarity by communicating directly with the recipient. This functionality provides added security and convenience, enabling direct trading within the application.

“We never, ever have access to anyone’s funds or to their seed phrases. We do believe that the owners should have the power in their hands, so they can do what they think is best with their assets and trust that they are theirs,” Brambatti added. 

To ensure that users can easily navigate the Core blockchain, Element Wallet incorporates user-friendly design strategies to simplify interaction.

Breaking Down Web3 Complexities

Core and Element representatives emphasized that community was at the heart of the blockchain’s success. To further cultivate user engagements, Core DAO focuses on breaking down onboarding barriers and facilitating user experience.

“We’re really focused on simplifying the kind of Web3 complexities that are often found in the space today. As we work closely with the Core DAO and the core team, and as the space evolves, we just find more opportunities to really simplify it and make UX be at the forefront of this,” explained Sean Schireson, Head of Product at Element Wallet. 

Element Wallet simplifies Core chain-related activities by providing a unique and comprehensive wallet that meets all user needs.

“The Element Wallet really enhances the user experience on Core chain, since it was built for the Core ecosystem. If you want to buy crypto, swap, non custodially stake your Bitcoin, you could do it all. If you want to chat with people, you could do it on there. So just trying to get the whole community onboarded, so that we could all be on this one Element Wallet and all transact together and just make the experience better for everybody,” explained Dennis.

The Core team created Sparks, a dynamic system for measuring contributions to the Core community’s growth to encourage user participation. Sparks track user activity and engagement within the Core Chain ecosystem. Based on their interactions and involvement, they are awarded to users and their teams. 

Daily Spark allocations are distributed based on activity level, with more active users receiving larger amounts. Users can also receive sparks by engaging with the Element Wallet. 

“What we want to do is make that entry point feel like a consumer app that you’ve used and loved before. And that’s really our gold element. We’re not trying to necessarily reinvent the wheel, but we’re definitely trying to have a new spin on an otherwise kind of saturated UX market. And so that’s where we’re really focused on there,” concluded Schireson.

This focus on user experience and community engagement aims to facilitate broader adoption and participation in the developing BTCfi sector.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin Outlook 2025As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
Author  TradingKey
Jan 23, Thu
As the Bitcoin market continues to mature, its 2025 outlook appears highly favourable, driven by institutional adoption and regulatory developments.
placeholder
What Crypto Whales are Buying For May 2025Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
Author  Beincrypto
Apr 21, Mon
Crypto whales are making bold moves heading into May 2025, and three tokens are standing out: Ethereum (ETH), Artificial Superintelligence Alliance (FET), and Onyxcoin (XCN).
placeholder
Analysts Highlight 4 Reasons Why ETH Price Could Rebound Strongly in MayEthereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
Author  Beincrypto
May 07, Wed
Ethereum (ETH) has declined for five consecutive months. However, it enters May with rising optimism.
placeholder
Ethereum Price Ready to Surge—$2,000 Level Could Be Within ReachEthereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
Author  NewsBTC
May 08, Thu
Ethereum price started a fresh increase above the $1,800 zone. ETH is now rising and attempting a move above the $1,850 resistance. Ethereum started a fresh recovery wave above the $1,820 resistance.
placeholder
Ethereum Price Explodes Past $2,200 with 25% Surge—Momentum Builds FastEthereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
Author  NewsBTC
May 09, Fri
Ethereum price started a fresh surge above the $2,000 zone. ETH is now up over 25% and consolidating gains near the $2,200 zone. Ethereum started a fresh surge above the $2,000 resistance.
goTop
quote