The Internet Computer (ICP/USD), the world’s first internet-scale public blockchain has brought smart contracts functionality to Bitcoin (BTC/USD), thanks to its mainnet integration with the world’s largest cryptocurrency by market cap. Unlike platforms such as Ethereum, Bitcoin does not natively support smart contracts.
According to DFINITY Foundation, the company helping to develop the Internet Computer blockchain, it is now possible for native smart contracts-enabled transactions on Bitcoin.
The Internet Computer will serve as Bitcoin’s Layer 2, allowing users to hold, send and receive BTC natively without having to use blockchain bridges or third party solutions.
A press release shared with Invezz on Friday said that the mainnet integration adds a trustless foundation that DeFi and Web3 applications can tap into when looking to code Bitcoin.
It is a game-changer for Bitcoin, Manu Drijvers, Director of Engineering at the DFINITY Foundation, said in a statement.
“Blockchains are like walled gardens, incapable of interaction between one another. When this comes to Bitcoin, applications, such as DeFi applications that could benefit most from interacting with the world’s largest cryptocurrency do not have the ability to do so. The Internet Computer’s integration with Bitcoin is a true game-changer for the industry, finally bringing smart contract functionality to Bitcoin and enabling a whole new landscape of DeFi and dapp development never before possible using BTC.”
Some of the possible activities the revolutionary functionality brings to Bitcoin include yield farming, lending, and payments. The integration therefore removes the need for bridged or wrapped bitcoin in order for users to participate in decentralised ecosystems like DeFi, GameFi, SocialFi and NFTs.
Also, at a time when hacks and other breaches have targeted DeFi protocols, the Internet Computer’s integration with Bitcoin offers another layer of security via the ECDSA (Elliptic Curve Digital Signature Algorithm) implementation. This means not only are applications running on a robust network, but one that also helps unlock unmatched liquidity.
The Internet Computer will allow for fast transactions and low fees, with transactions settling on the Bitcoin blockchain only when it’s necessary.
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