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The investment giant Franklin Templeton says it is actively monitoring five areas of the Bitcoin ($BTC) ecosystem.
The asset management firm says it is enthusiastic about Bitcoin developments following the approval of $BTC exchange-traded funds (ETFs) earlier this year.
In particular, Franklin Templeton is monitoring Bitcoin layer-2s, restaking/native yield primitives, ordinals, decentralized finance (DeFi)/runes and $BTC’s OP_CAT proposal.
Bitcoin ordinals allow users to inscribe digital data such as images and videos to a single satoshi, or an individual unit of $BTC, to create the equivalent of non-fungible tokens (NFTs) on the Bitcoin network.
Runes is a protocol that aims to make creating fungible tokens on Bitcoin more efficient.
OP_CAT is a scripting feature that $BTC’s pseudonymous creator, Satoshi Nakamoto, spiked back in 2010. A Bitcoin Improvement Proposal (BIP) proposes bringing the feature back, according to the crypto exchange OKX.
Explains OKX,
“OP_CAT is a Bitcoin feature that expands its scripting abilities. It combines data into a single output — a process in programming known as concatenation — making transactions simpler and allowing for the development of complex smart contracts.”
Franklin Templeton also says it’s monitoring the Ethereum ($ETH) ecosystem.
“Investing in $ETH represents ownership in the Ethereum blockchain, the largest decentralized ecosystem. We are seeing continued innovation across the modular stack. Areas we are excited about include:
· Parallel Execution
· Restaking Primitives
· Alternative [Data Availability]
· Blob utilization post EIP 4844″
Parallel execution is a feature where the network can process multiple transactions at once. It aims to help with scaling, according to CoinGecko.
Data availability refers to “the confidence a user can have that the data required to verify a block is really available to all network participants,” according to Ethereum.org. The rollup deployment platform Caldera notes that alternative data availability means there’s a separate layer where blockchains can maintain access to relevant data.
“Blobs” are dedicated data storage spaces designed to reduce transaction fees, according to Etherscan.
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