DFINITY Basis, the not-for-profit group contributing to the event of the Internet Computer (IC) — a high-speed, internet-scale public blockchain — has introduced in the present day the Web Pc’s mainnet integration with Bitcoin, bringing sensible contract performance to the cryptocurrency.
Now, the Web Pc can function a layer-2 for Bitcoin the place sensible contracts on the Web Pc can maintain, ship and obtain bitcoin natively, with out the necessity for bridges or different Third-parties. This supplies a trustless basis for various DeFi and web3 functions searching for to code Bitcoin.
“Blockchains are like walled gardens, incapable of interplay between each other. When this involves Bitcoin, functions, akin to DeFi functions, that might profit most from interacting with the world’s largest cryptocurrency wouldn’t have the flexibility to take action. The Web Pc’s integration with Bitcoin is a real game-changer for the trade, lastly bringing sensible contract performance to Bitcoin and enabling a complete new panorama of DeFi and dapp improvement by no means earlier than doable utilizing BTC.”
– Manu Drijvers, Director of Engineering at the DFINITY Foundation
With IC integration, bitcoin can be utilized for DeFi actions like yield farming, lending, funds, and extra…
That is achieved by means of the Web Pc’s enhanced Chain-key cryptography. The direct integration with Bitcoin averts the necessity for bridged and wrapped Bitcoin, a way used to facilitate interplay between completely different blockchains, however one that’s error-prone and infrequently hacked.
To allow quick bitcoin transactions between sensible contracts on the Web Pc, the DFINITY Basis is now engaged on Chain-Key Bitcoin (ckBTC). Right here, ckBTC will act as a neighborhood ledger facilitating quick transactions with low charges and solely settle transactions on the Bitcoin community when mandatory.
Advantages / Builders
The Web Pc’s integration with Bitcoin additionally supplies a safer different to centralized bridges within the type of threshold ECDSA (Elliptic Curve Digital Signature Algorithm). The implementation of ECDSA empowers the Web Pc’s canister sensible contracts, to straight conduct bitcoin transactions with out an middleman or bridge.
ICP’s developer community has lengthy expressed a powerful demand for this characteristic…
DEX initiatives akin to Helix or IC Lighthouse are already constructing on the Bitcoin and Chain-Key signing options to supply bridgeless inter-chain token swaps. Furthermore, a couple of ecosystem dApps are additionally able to launch some artistic use instances past DeFi.
Amongst them is the crowdfunding platform, CrowdfunNFT – which can settle for funding for initiatives in BTC. The intention is to develop the crowdfunding market general and herald a contemporary set of venture backers to crypto. Different examples of use instances in improvement are transactions in BTC on NFT marketplaces and peer-to-peer switch of BTC straight on social media and messaging dApps.
Bringing new programmability to Bitcoin will open extra distinctive and imaginative use instances sooner or later.