Bitcoin Smart Contracts to Launch on Internet Computer DeFi Projects

Sonic, InfinitySwap, and ICPSwap are getting ready to leverage the Internet Computer blockchain’s direct integration with Bitcoin.

The team at DFINITY notes that the Internet Computer is an innovative blockchain that hosts “unlimited” data and computation on-chain. You can develop scalable dApps, DeFi, websites, and other applications on the platform.

As mentioned in a blog post, the mining of Bitcoin’s “Genesis Block” on January 3, 2009 is one of the “biggest technological events” in recent history. Bitcoin, now the world’s largest crypto, “demonstrated the first use case for the immutable, transparent, and tamper-proof ledger technology called blockchain, laying the foundation for the development of today’s crypto industry.”

As noted in the update, smart contracts were later introduced by Ethereum, with blockchain networks “becoming full-fledged financial ecosystems that facilitate complex transactions in a trustless way.”

However, if Bitcoin were to also have advanced smart contracts, developers would “finally be able to build a variety of dapps and DeFi projects that can natively use BTC, unlocking immense value and bringing the adoption of crypto and DeFi further into the mainstream.”

In a key step toward that reality and vision, the Internet Computer blockchain will soon provide a “direct integration with the Bitcoin network by the end of Q1 — and next-generation DeFi projects like Sonic, InfinitySwap, and ICPSwap are preparing to leverage the upgrade.”

As noted in the blog post:

“Rather than “bridging” BTC into the Internet Computer, the integration implements Chain Key cryptography to establish a secure, direct interface with the Bitcoin ledger, making it “trustless” rather than reliant on an intermediary. This enables developers to build canister smart contracts that communicate with the Bitcoin network.”

The update further explained that users maintain their private keys, and all signatures are “created using a multi-party protocol.” A Bitcoin Adapter connects to the Bitcoin mainnet to “retrieve blocks and send outgoing transactions.:

The blog post also noted that canister smart contracts on the Internet Computer “effectively become Bitcoin wallets, with the ability to receive, hold, and send BTC.”

InfinitySwap CEO Max Chamberlin remarked:

“Dapps on the Bitcoin-integrated Internet Computer network will have a much better user experience because of Chain Key technology. On InfinitySwap, for example, you’ll be able to transfer your BTC directly to another Bitcoin address to enter a liquidity pool. On other chains the process has more steps, involves centralized bridges, and you also need to hold the base-layer coin. Here, all you need is BTC to participate.”

ICPSwap intends to integrate BTC as the base currency for trading.

The ICPSwap team added:

“The Internet Computer can help the Bitcoin network achieve directly interoperable scalability and attract more Bitcoin developers to create DeFi applications for Bitcoin. Through the Chain Key cryptography, the Internet Computer can quickly and inexpensively maintain and process the data generated by the large number of DeFi applications using Bitcoin.”

As noted in the announcement, smart contracts using the Bitcoin network will “bring a paradigm shift, allowing Bitcoin’s liquidity to flow into a new hub for DeFi applications.”

Bitcoin-based lending and borrowing protocols as well as AMM DEXs involving BTC “are set to become a reality.”

For more details on this update, check here.



Sponsored Links by DQ Promote