In an exclusive interview with BitcoinWorld, we got the chance to speak with Brendon Sedo, CEO at Core Chain,
Brendon Sedo, a serial entrepreneur and Bitcoin enthusiast, is known for his founding role at Joist and as a CEO who led the company to process over 1 billion in construction payments annually. As an initial contributor to Core Chain, he brings a unique blend of Web2 and Web3 experience, driven by a commitment to real utility and a global citizen’s mindset. Drawing on his 15 years of experience in technology, Brendon is driving Web2 partnerships at Core Chain. His entrepreneurial journey enhances his role in leading Core Ventures and the Core Venture Network, where he supports builders on Core Chain by facilitating funding. He played a key role in securing over 10 major blue chip project integrations for Core Chain.
What inspired Core to develop the first end-to-end Proof-of-Stake Layer for Bitcoin?
Core was inspired by the need to unlock Bitcoin’s full potential. While Bitcoin is the most secure and decentralized blockchain, its base layer lacks the scalability and functionality needed for native yield and modern DeFi applications. Core was developed to extend Bitcoin’s protection to a sophisticated smart contract platform, creating a seamless platform for Bitcoin holders to earn yield, participate in DeFi, and build decentralized applications.
2. Since your mainnet launch in January 2023, Core has achieved significant milestones. What were the biggest challenges in reaching these milestones?
One of the biggest challenges early on was building in a Bitcoin ecosystem that hadn’t been particularly builder-focused. DeFi and Bitcoin were disconnected, which was a challenge, but has also turned out to be a strength for Core. Bitcoin’s base layer is purposefully limited to preserve its security and decentralization, making it technically difficult to expand its functionality without compromising its core principles. Developing non-custodial Bitcoin staking—a solution that aligns with Bitcoin’s ethos while unlocking new value—required overcoming significant technical hurdles. Core’s ability to integrate Bitcoin with EVM-compatible smart contracts and offer Bitcoin-secured staking has proven that building with Bitcoin is not only possible but incredibly valuable for the ecosystem.
3. How did you ensure adoption by over 28 million unique addresses and build $920M in TVL in such a short period?
The simple answer is product-market fit. Core is the only place for fully non-custodial Bitcoin staking yields and the most diverse BTCfi dapp ecosystem. There are so many different dapps on Core that unlock more Bitcoin utility, so users and capital are flowing in. Core’s rapid adoption stems from a clear focus on usability, security, and creating real value for Bitcoin holders. Furthermore, integrations with trusted custodians, seamless EVM compatibility, and a thriving dApp ecosystem also made Core accessible to both retail and institutional users.
What were the technical hurdles in developing a Proof-of-Stake Layer for Bitcoin, and how did you overcome them?
Developing a Proof-of-Stake (PoS) Layer for Bitcoin posed unique challenges, as Bitcoin’s base layer is purposefully limited to maintain its security and decentralization. The key to unlocking Bitcoin was by only relying on Bitcoin for things it excels at. Core’s Satoshi Plus consensus leverages Bitcoin miners’ decentralized protection, but doesn’t rely on Bitcoin’s slow network for transaction finality. Another example is in non-custodial Bitcoin staking where Core couldn’t rely on Bitcoin for native staking yield, but could rely on Bitcoin’s native absolute time-lock features to be a critical part of Core’s Bitcoin staking layer.
How do you address scalability and transaction speed while maintaining alignment with Bitcoin’s principles?
Importantly, Core does not alter the base Bitcoin layer at all, nor does it require any changes to the Bitcoin base layer in the form of new op_codes or other upgrades. Instead, Core extends Bitcoin’s superpowers to its parallel, high-performance rails. While the Bitcoin base layer itself is always available for storage and can even be used for staking with Core, the Core blockchain serves as an extension of Bitcoin miner and holder protection. Secured by Bitcoin miners and Bitcoin stakers, Core is the most Bitcoin-aligned smart contract platform, enabling users to enter into DeFi while comfortably Bitcoin-aligned.
6. Core has achieved ~76% of Bitcoin mining hash power, contributing to your network’s security. How did you foster this level of collaboration with miners?
It’s simple: miners want extra rewards at zero additional cost. By contributing to Core’s security, miners earn CORE tokens, which can then be used to enhance the staking rewards on their treasuries. This purely additive benefit has resonated strongly, especially with mining pools, fostering enthusiastic participation from tons of parties.
How do you engage and retain your developer and user communities in such a competitive space?
Developers on Core have the unique ability to build on Bitcoin while still using all their familiar EVM tools. EVM compatibility, comprehensive tools, support through initiatives like the Core Commit Program, and investor connections through the Core Venture Network are just the start of the Core developer experience. For users, the focus on secure, sustainable Bitcoin staking and a robust DeFi ecosystem ensures consistent utility and growth. By aligning incentives with the needs of the Core community and maintaining open, transparent communication, Core has benefitted from strong engagement even in a highly competitive space.
Core enables non-custodial Bitcoin staking. How does this benefit users compared to other staking solutions, and what measures ensure its security?
Core’s non-custodial Bitcoin staking allows users to earn yield on their Bitcoin without relinquishing ownership or relying on third-party custodians. Unlike traditional solutions that may involve counterparty exposure or slashing risk, Core leverages Bitcoin’s native absolute time-locks, ensuring that staked Bitcoin remains fully secure and within the user’s control. This way, Bitcoin never leaves the Bitcoin base layer or the custody of the staker.
With over 317 million transactions processed, how does Core handle network efficiency and prevent congestion or high fees?
Core’s Satoshi Plus consensus mechanism brings together Bitcoin miners, Bitcoin holders, and CORE holders to participate in securing the network. While this extensive consensus might seem resource-intensive, Satoshi Plus ensures efficiency and speed by enabling these participants to elect the most effective and high-performance validators to produce blocks. This innovative model allows Core to achieve secure and decentralized consensus without compromising scalability, making it both robust and high-performance.
10. What role will Core play in shaping decentralized finance around Bitcoin?
Core is positioned as the leading platform for Bitcoin DeFi (BTCfi), transforming Bitcoin from a passive store of value into an active asset within decentralized finance. By enabling non-custodial Bitcoin staking, offering enhanced yields through Dual Staking, and hosting a wide range of EVM-compatible dApps, Core creates new ways for Bitcoin holders to leverage their assets. Core’s infrastructure also empowers developers to build scalable and secure financial applications that align with Bitcoin’s principles, driving adoption and innovation across the ecosystem.
What are Core’s next big milestones? Are there any new features or partnerships we should look out for in the coming year?
Mass institutional adoption of Dual Staking is a major focus for Core. By late 2024, leading custodians like BitGo and Cactus Custody integrated with Core, enabling their clients to stake both Bitcoin and CORE tokens to maximize staking yields. This influx of institutional capital, potentially reaching hundreds of millions of dollars or more, is poised to significantly accelerate adoption. Additionally, the upcoming launch of Liquid Staked Bitcoin (LstBTC) will be a transformative milestone for the BTCfi ecosystem, unlocking yield-bearing Bitcoin for use across a composable and expansive DeFi landscape.
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