Hemi Scales Bitcoin Beyond Money With DeFi Power

Hemi Unites Bitcoin & Ethereum for Next-Gen DeFi

The future of Bitcoin is programmable. Hemi is the network that’s scaling Bitcoin beyond money. Bitcoin has always been sovereign and spendable, but it’s been hard to use natively in smart contracts.  Relays, bridges, and oracles tried to fill the gap, but they miss key parts of Bitcoin state and introduce new trust assumptions.  That’s where Hemi steps in.

Hemi brings Bitcoin and Ethereum together in a seamless way combining Bitcoin’s security with Ethereum’s programmability to unlock next-level DeFi.

Whats the Chaos behind

Hemi achieved a $1 billion TVL milestone within 38 days of inception and is currently the top-ranked BTC Layer 2 project in terms of TVL ($1.22 billion). The $HEMI token is scheduled to launch in June, adding to the excitement. Given its dominance in TVL, compelling story, and likelihood to hit the Binance exchange because #Binance Labs funded in the $Hemi seed round, I think the listing of $HEMI will be the most anticipated event of June.  Therefore, it's advisable to watch them.

Bitcoin is now closer to DAO governance, staking income, and DeFi apps thanks to Hemi.  On March 12, the mainnet went live, and it's booming.   

So, what exactly is Hemi? 

Hemi is a modular system that combines Bitcoin and Ethereum to improve and expand the primary capabilities of the two prominent blockchain networks. Hemi proposes a revolutionary approach to blockchain interoperability and scaling by viewing Bitcoin and Ethereum as components of a single supernetwork rather than separate ecosystems.

BTCfi is a trillion-dollar market that all BTC investors want to get into. However, putting BTC to work in DeFi while maintaining its security profile and never compromising its essential values is a difficult task.  But Hemi is altering the game with its Programmable Bitcoin and Hemi hVM, which introduce native Bitcoin to the DeFi space. 

What is programmable bitcoin? 

Basically, it is native Bitcoin that can be utilised in DeFi and apps without the need for wrapping, bridges, or losing control. 

The Hemi hVM (a fully indexed Bitcoin node inside an EVM) and Bitcoin Tunnels enable programmable Bitcoin by providing direct, trustless access to Bitcoin and its blockchain from within smart contracts.

Hemi Unites Bitcoin and Ethereum

Hemi connects Bitcoin and Ethereum, enhancing their programmability and logic. It allows Bitcoin's idle liquidity to be utilized and extends Ethereum's network programmability. Once tunneled into Hemi, BTC becomes usable in DeFi, enabling trading, lending, and yield generation.

This means that:  

• Smart contracts can leverage tunnelled Bitcoin and Ethereum. 

• On Hemi, developers may create applications that react instantly to Ethereum and Bitcoin events.  

• Logic and liquidity don't have to coexist on different chains anymore.

Why Hemi Matters for the Future of Cross-Chain DeFi

Hemi has developed trust-minimized tunnels using multisig and smart contract-based security protocols for Bitcoin and EVM-based environments. These tunnels aim to avoid central points of failure and reduce reliance on intermediaries. They are rolling out in stages, supporting BitVM2 integration and a secure zero-knowledge proof-based settlement system for Ethereum.

Bitcoin-Aligned Security with PoP 

• Hemi brings Bitcoin utility without compromising its security. 

• Its Proof-of-Proof consensus ties Hemi directly to Bitcoin, with PoP miners earning rewards for inscribing Hemi transaction data onto Bitcoin blocks. Earn Yield With Bitcoin on Hemi Now 

• Earn yield and get Hemi points multipliers by providing liquidity with specific Hemi partners.

Hemi Tunnels: An Innovative Method for Transferring Assets Between Ethereum and Bitcoin

Hemi Tunnels offer a trust-minimized method for connecting Bitcoin and Ethereum, allowing holders to participate in DeFi activities without centralized custodianship. The tunnel, accessible via the Hemi Portal, allows users to select an origin and destination network, transfer assets, and sign transactions.

Depositing EVM Assets With The Hemi Tunnel

The Hemi Tunnel secures EVM-based assets through an EVM-based validation smart contract, ensuring rapid post-deposit authentication. After verifying a block, Hemi's block derivation protocol activates, generating a Hemi block with deposit information. Representative tokens are minted onto Hemi, equivalent to the locked smart contract, supporting DeFi activities in an EVM-compatible dApp ecosystem with native Bitcoin state awareness.

Withdrawing EVM Assets With The Hemi Tunnel

The Hemi Tunnel facilitates seamless EVM asset withdrawals to native chains. Users select the amount and destination chain, sign the transaction, and the tokens are burned. The network updates its state, providing cryptographic proofs. Hemi processes cross chain transfers quickly, providing withdrawal proofs in 40 minutes. A dispute-free proof can take up to 24 hours.

Hemi Bitcoin apps

The Hemi Virtual Machine (hVM) and Hemi Bitcoin Kit (hBK) are crucial for Bitcoin interoperability, enabling the development of Bitcoin apps, though their functions and precompile calls may change in future versions.

The hVM is an indexed Bitcoin full node that can be directly accessed within the EVM, exposing data like transactions, address balances, UTXOs, and chain metadata to smart contracts on Hemi.

The hBK is a smart contract library on Hemi that simplifies Bitcoin awareness by exposing higher-level functions for precompile calls and data marshaling, allowing developers to create simple data structures.

Uses of Hemi

Hemi Network's flexible framework offers various finance services, including lending, borrowing, trading, and asset management. It optimizes investment strategies and portfolio management, and supports the creation of unique financial instruments. This flexibility attracts diverse users, from individual investors to large institutions, attracting diverse market needs.

The project has many core features such as:

Seamless integration of DeFi applications 

Enhanced security through advanced cryptography 

High scalability to support growing user base 

User-friendly interfaces for simplified navigation 

Comprehensive support for various blockchain protocols

Technology Behind

Hemi Network's unique technological architecture combines layer-1 and layer-2 solutions to optimize transaction speeds and reduce costs. It employs innovative consensus mechanisms for quick transaction validation and is developer-friendly, allowing easy creation and deployment of decentralized applications. This focus enhances user experience and encourages innovation within the ecosystem.

Future Aspects

Hemi Network, a decentralized blockchain solution, has the potential to revolutionize various sectors, including finance, gaming, and supply chain. Its scalability could lead to widespread adoption, attracting traditional businesses to explore blockchain solutions. As scalability improves, user experiences will enhance, encouraging participation. The impact on global finance could be profound, allowing faster and cheaper transactions. The future of Hemi Network is promising, with the potential to reshape the digital economy.