Bitcoin to be Armed with Smart Contract Capability by Internet Computer
The Internet Computer blockchain from the Dfinity Foundation is adding smart-contract capabilities to the Bitcoin (BTC) network, possibly paving way for fresh real-world use scenarios for the leading cryptocurrency.
Dfinity Foundation stated Tuesday that Internet Computer would connect with Bitcoin via chain key cryptography, resulting in the creation of smart contracts with native BTC addresses stored straightaway on Internet Computer.
“Internet Computer smart contracts will get direct exposure to bitcoin liquidity, and Bitcoin will acquire robust fresh smart contract capabilities, without the requirement for unsecured and burdensome certified bridging facilities,” Dominic Williams, the Dfinity Foundation’s founder and chief scientist, said.
Smart contracts on the Internet Computer will have linked BTC addresses, allowing them straight forward links to Bitcoin blockchain operations. The completion of a trade on an Internet Computer requires two seconds, while Bitcoin needs 40 minutes.
To circumvent this issue, so-called “Bitcoin banks” may be used straight on a computer connected to the Internet, allowing for two-second trades. Dfinity Foundation established a $223 million Developer Ecosystem Program earlier in 2021 to promote future smart contract and blockchain research.
The initiative, which debuted in 2014, has attracted funding from some of the industry’s most prominent venture companies such as Andreessen Horowitz and Polychain Capital. Dfinity’s new initiatives are a portion of larger industry push to make Bitcoin widely usable for activities, to decentralize money, and to promote Web 3.0.
Stacks, an open-source network, presented its concept for Bitcoin-centric smart contracts using a layer-one blockchain with an in-house bridge in January. Many other developers are working on new apps in preparation for Bitcoin’s much-anticipated Taproot update later this year. Mining nodes overwhelmingly supported the update, clearing the door for the soft-fork to be activated in November.
Although Bitcoin has yet to fulfill all of Satoshi Nakamoto’s 2008 whitepaper’s tenets, such as broad use as an electronic payment system, it has become a leading alternative asset. In May, the Bitcoin network had an aggregate market value of more over $1 trillion before experiencing a wide market downturn. Much of the expansion may be attributed to increasing institutional acceptance for Bitcoin as an asset.