Enabling DeFi for Bitcoin: An Interview with Mintlayer Co-Founder Enrico Rubboli

Mintlayer is a layer 2 protocol that allows users to build a decentralized financial ecosystem rooted in the established network of the Bitcoin blockchain. Mintlayer is the only DeFi platform directly interoperable with native Bitcoin.

In an interview with co-founder Enrico Rubboli, we talked about the vision behind Mintlayer, the use cases, the recent token launch and what lies ahead.

1. What was the vision behind creating Mintlayer?

The vision behind Mintlayer was to fix the problems that existing DeFi ecosystems have with regard to draining the liquidity of the Bitcoin network. We just didn’t think anyone was doing it right, so instead of complaining, we decided to make it ourselves.

2. How does Mintlayer enable DeFi for Lightning Network and Bitcoin?

We are building a layer 2 network that is as interoperable with Bitcoin (and by extension the Lightning Network) as possible. By adopting a UTXO accounting system, be incomplete and design Mintlayer to not only be compatible with the technology, but also with the mission of the Bitcoin community. We made the node efficient enough to run on an average desktop computer in the background, and we don’t require users to pay fees in ML tokens. These aspects were important in helping to democratize the user base.

3. Talk to us about the use cases related to the Mintlayer platform?

In the future, we see hundreds of potential use cases involved in projects developed on the Mintlayer platform. We will be able to power pretty much any DeFi application. Mintlayer also has an NFT token standard already available.

In a shorter time frame, Mintlayer is set up to offer security tokens with our ACLs, privacy tokens with the MLS-02 privacy token, and with Lightning Network integration we are able to set up a DEX that converts funds almost instantly. With this technology, you will be able to pay for your coffee with Bitcoin, and the coffee shop will get a stable coin in US dollars.

4. What makes the platform stand out from the rest in the crypto space?

The main thing is that we build around the most popular online currency, which is also the largest liquidity pool in the crypto sector. Unlike other DeFi projects, you can use native Bitcoin via atomic exchange to trade against any token on the Mintlayer blockchain. Another great feature is that we have a fee-free system, which means block signers can choose which tokens they want to accept.

5. What is Atomic Swap? Discuss the features and functions with us.

An atomic exchange is an exchange of cryptocurrencies between two separate blockchains. It allows you to remove third-party involvement and the need for connected tokens. It works by creating a hashed timelock contract (HTLC) that reverts if all conditions in the contract are not met within a specified time period, the same type of contract used to facilitate the Lightning Network. Atomic swaps allow users to use their native Bitcoin in DeFi applications without incurring the cost of custody. This technology is at the heart of Mintlayer’s vision for a DeFi platform that can leverage Bitcoin with the least amount of friction.

6. How do you handle privacy and security issues related to the platform?

First, we use technologies that have already been proven to be very secure. UTXO, verifiable random functions, atomic exchange. The foundation of the Mintlayer blockchain makes common transactions more difficult to trace and identify than on other blockchains. When you really need privacy, the MLS-02 token offers complete privacy. Privacy is a big selling point for the blockchain as it stands.

7. Tell us more about the token launch? What is ML?

Our token launch event is scheduled for March 21st. Users who selected an ERC20 token will receive their tokens then. It’s a big event because it will bring in some IPOs and help spread the word about our project. ML is our newly renamed native token.

8. What applications does ML have in the platform ecosystem?

There are 3 utility stages for the ML token. During the testnet, ML tokens can be used to purchase services from RBB Lab. This will help early developers move forward. During the first iteration of the mainnet, ML will be required for all transaction fees. Developers will be able to use ML to execute smart contracts. Users can also stake their ML tokens to participate in the consensus mechanism, which will earn block rewards

9. User engagement is essential for any platform. How do you ensure that you do this with respect to the token launch?

We have some of the best marketing minds in the business. We recently had a pre-sale initiative from TGE that sold out in 90 seconds. Our outreach and marketing strategy has increased tremendously in preparation for TGE. However, our most important initiative is not for TGE – it is for what comes after.

The Mintlayer ecosystem fund will help incubate and accelerate the development of dapps and infrastructure. Developers interested in building on or porting a project to Mintlayer can already submit it for review. The fund will provide capital, but also connect resources and fill the gaps for any weaknesses a development team has.

10. What awaits on your roadmap? Tell us more about it.

After TGE, we will launch our test network in the 2nd quarter of 2023, and the main network the quarter after that. By the end of the year, we should have a basic nuclear exchange system integrated into the platform, and that is the beginning of the exciting part of this project. It won’t be long after that when users will be able to pay transaction fees in the tokens they transact, access control lists will help simplify security tokens, our MLS-02 token standard for confidential transactions will go live, programmable pools for smart contracts will be available, and Lightning Network is integrated as a layer 3 protocol on Mintlayer.

Sometime in the future we will see an application on Mintlayer where a user can pay for a cup of coffee with a derivative token linked to a security (let’s say Tesla stock) and the coffee shop receives a USD stablecoin without knowing what the customer paid with. It is this type of paradigm shift that we would like to see propagated to the masses. We believe that it is only possible to get to that point if you start with a currency that people trust, and for us that is Bitcoin.

For more information about Mintlayer, please check out their official website.

Disclaimer: This is a paid post and should not be treated as news/advice.