Dfinity will launch a Bitcoin smart contract on the Internet Computer Protocol as a move of wider-scale initaitive to make BTC usable in Defi and Web 3.0 so let’s read more in our latest Bitcoin news.
The smart contracts will enable lending, yield farming, derivatives, and other applications in DeFi for BTC. The Dfinity Foundation is behind the Internet COmputer blockchain and it announced that it will be integrating with Bitcoin, opening up the crypto to smart contracts and decentralized finance DeFi apps on the network by the end of the year. The founder Dominic Williams stated:
“Internet Computer smart contracts will gain access to Bitcoin liquidity, and Bitcoin will gain powerful new smart contract functionality, without the need for insecure and cumbersome trusted bridging services.”
A Defi ecosystem for BTC is a major industry initiative and it can mean that the world’s most popular crypto could be used for lending, derivatives, liquidity pools, yield farming, and more. The Internet Computer was created to act as an alternative to the cloud-based infrastructure to today’s world wide web and was launched in May after the developments since 2016. Its ambitious aim is to transform the internet into one giant and global computer that will take on the $370 billion cloud computing market by enabling secure, decentralized versions of popular applications like TikTok, Whastapp, and LinkedIn. The key to the goal is smart contracts and interoperability with the web and other blockchain networks that will enable different pieces of software to interact.
To achieve this, the Internet Computer is powered by chain key cryptography which allows for sign transactions for other blockchains like BTC. Dfinity will launch a new feature but it is also not the only project to be working on bitcoin integration. Bridging technologies are the most popular method of doing it and the Portal DeFi project is also looking to build out a Defi ecosystem for BTC. It announced an $8.5 million raise with Coinbse Ventures and Arrington XRP Capital how ill be participating in teh funding round. The founder, Michael Arrington who is also the founder of TechCrunch stated:
“We’re excited to see Portal’s Bitcoin-native approach to multichain transfers go live and provide an alternative bridging mechanism to the growing number of active on-chain users.”
Bitcoin is due to fo its first big upgrade in a few years dubbed Taproot, and its changes will make it easier for the smart contracts to be created on the protocol. Bitcoin supporter Jack Dorsey who is also the founder of Twitter wants to take advantage as he announced his other company Square is working on the Defi platform to integrate BTC.
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