Built on Bitcoin with Jacob Brown

👉 Subscribe to the Built on Bitcoin newsletter: https://builtonbitcoin.beehiiv.com/Are Bitcoin Layer 2s actually "giving away the store"?In this episode, Jacob Brown is joined by Adam Krellenstein, developer of Counterparty and co-founder of Kontor, to challenge the dominant narrative of Bitcoin scaling. While the industry is rushing off-chain to complex rollups and sidechains, Adam argues that the real scaling breakthrough lies in optimizing L1.We dive deep into why copying Ethereum's economics on Bitcoin fails, how Hal Finney actually designed meta protocols back in 2010, and why the first ever DEX, NFTs, and DeFi protocols were built on Bitcoin in 2014—long before Ethereum existed.Adam also breaks down the architecture of Kontor: its hybrid UTXO-account model that solves the bottlenecks found in protocols like Alkanes, and its Bitcoin-secured permanent storage network that challenges IPFS and Arweave.⏱️ Timestamps:0:00:00 - Intro & Adam's past year refactoring Counterparty0:01:46 - What is a meta protocol? (Hal Finney’s 2010 blueprint)0:03:00 - The forgotten history: Building the first DEX & NFTs on Bitcoin in 20140:03:52 - Why build a new meta protocol? (Limitations of Counterparty & Ordinals)0:07:18 - Alkanes vs. Kontor (Rushed proofs-of-concept vs complete designs)0:09:20 - The Alkanes race condition & why pure UTXO systems hit throughput ceilings0:10:00 - The hybrid UTXO-account model: How Kontor enables concurrent smart contracts0:11:00 - Lessons from enterprise blockchain (Symbiont & solving concrete problems)0:12:12 - What do Bitcoiners actually want? (Yield, loans, and runes adoption)0:13:40 - Why copying Ethereum's economics on Bitcoin is a mistake0:15:10 - Interoperability: How Kontor connects all Bitcoin meta protocols0:16:40 - The single-confirmation atomic swap (BTC to CORE to Storage to Inscriptions)0:19:18 - The missing primitive: Permanent file storage secured by Bitcoin0:21:20 - Why IPFS and Arweave fail (Data availability vs retrieval, and lack of penalties)0:25:40 - How the Kontor storage network works (CORE staking and random challenges)0:26:27 - Encryption on public networks: "Encrypt your data and put it in the NYT"0:30:52 - Kontor's Tokenomics (Gas fees, burn mechanisms, and target inflation)0:32:57 - Scaling up vs scaling out (Why L2s are "giving away the store")0:37:12 - Kontor's Signet launch, open-source explorer, and SDK timeline0:38:22 - The shifting Bitcoin narrative (Why builders don't need permission to ship)0:41:31 - "Worse is better": Why Bitcoin's imperfections are its greatest strength0:44:50 - Culture wars, the OP_RETURN debate, and the future of Bitcoin maximalism🔗 Resources Mentioned:Kontor Network: https://www.kontor.network/Kontor Block Explorer: https://kor.spaceBuilt on Bitcoin on X: https://x.com/builtonbtcpod💬 Join the Conversation: Do you agree with Adam that moving activity to L2s is "giving away the store"? Or are off-chain rollups inevitable for Bitcoin scaling? Let us know your thoughts in the comments below!

Harsha Goli is back for a deep dive into the part of Bitcoin most people ignore: the compliant financial rails that make real-world Bitcoin apps possible. Especially the crucial actions of on and off-ramping. In this episode, we unpack what has changed in Bitcoin compliance over the past year, why more companies are plugging into custodians and banking partners, and how Magnolia is building infrastructure for wallets, lending apps, stablecoin conversions, fiat rails, and Bitcoin-backed loans. We also get into the practical tradeoffs around KYC, fraud, privacy, DLC oracles, stablecoins, 50-state coverage, Europe, Apple Pay, vibe coding, and why 2026 could be the year Bitcoin collateralization becomes a major theme. If you care about where Bitcoin is going beyond just holding, this is a look at the hidden stack that could bring Bitcoin products to mainstream users.

Subscribe to the Built on Bitcoin Newsletter: https://builtonbitcoin.beehiiv.com/Lending is the single biggest use case for Bitcoin. Full stop. To capture the benefits of your appreciated Bitcoin you've been holding for so long. You have two options:1. To sell and pay the tax 2. Take a loan, pay some amount of interest, and still get the upside if the price increases.In this episode, we sit down with Matthew Black and Jay Patel, founders of Lygos Finance, to discuss the future of non-custodial Bitcoin lending.We dive deep into Discreet Log Contracts (DLCs), why they might be the "Holy Grail" for Bitcoin-backed loans, and how Lygos is building a platform that gives you 50% LTV liquidity while keeping your keys (mostly) in your pocket. We also cover the "interest rate inversion" between DeFi and CeFi, and why institutional capital is finally waking up to Bitcoin as pristine collateral.**Timestamps:**00:00 Intro01:26 From Atomic Swaps to Bitcoin Loans (Matthew's Story)02:53 Lessons from the BlockFi/Celsius Blowups05:55 Why They Pivoted from Options to Loans10:13 Why DLCs are the Holy Grail for Lending18:34 Lygos Product Walkthrough: How it Works27:42 The Truth About "Trustless" (Oracle Risk Explained)37:26 The Capital Markets Thesis: Why Institutions Want In43:23 The Interest Rate Mystery: DeFi vs CeFi48:40 Bitcoin Upgrades: CTV, CAT & Covenants**Links & Resources:**- Lygos Finance: https://www.lygos.finance/- Follow Lygos on X: https://x.com/LygosFinance- Follow Matthew: https://x.com/matthewjablack- Follow Jay: https://x.com/jaypatel

Subscribe to the Built on Bitcoin Newsletter: https://builtonbitcoin.beehiiv.com/ Lending is the single biggest use case for Bitcoin. Full stop. To capture the benefits of your appreciated Bitcoin you've been holding for so long. You have two options: 1. To sell and pay the tax 2. Take a loan, pay some amount of interest, and still get the upside if the price increases. In this episode, we sit down with Matthew Black and Jay Patel, founders of Lygos Finance, to discuss the future of non-custodial Bitcoin lending. We dive deep into Discreet Log Contracts (DLCs), why they might be the "Holy Grail" for Bitcoin-backed loans, and how Lygos is building a platform that gives you 50% LTV liquidity while keeping your keys (mostly) in your pocket. We also cover the "interest rate inversion" between DeFi and CeFi, and why institutional capital is finally waking up to Bitcoin as pristine collateral.**Timestamps:**00:00 Intro01:26 From Atomic Swaps to Bitcoin Loans (Matthew's Story)02:53 Lessons from the BlockFi/Celsius Blowups05:55 Why They Pivoted from Options to Loans10:13 Why DLCs are the Holy Grail for Lending18:34 Lygos Product Walkthrough: How it Works27:42 The Truth About "Trustless" (Oracle Risk Explained)37:26 The Capital Markets Thesis: Why Institutions Want In43:23 The Interest Rate Mystery: DeFi vs CeFi48:40 Bitcoin Upgrades: CTV, CAT & Covenants**Links & Resources:**- Lygos Finance: https://www.lygos.finance/- Follow Lygos on X: https://x.com/LygosFinance- Follow Matthew: https://x.com/matthewjablack- Follow Jay: https://x.com/jaypatel

Follow the Built on Bitcoin pod on X: @JakeBlockchainWe sat down with Shehzan Maredia, the CEO of Lava, to discuss their recent $200m raise of VC & debt for growth, launch of the Bitcoin-backed line-of-credit product called BLOC, and address questions around changing of custody and concerns recently brought to light on the timeline.Follow Shehzan on X: Shehzan MarediaLearn more about Lava: Homepage