The Internet computer integration adds smart contracts to Bitcoin
The Internet Computer (ICP/USD), the world’s first internet-scale public blockchain, has brought smart contract functionality to Bitcoin (BTC/USD), thanks to its mainnet integration with the world’s largest cryptocurrency by market capitalization. Unlike platforms like Ethereum, Bitcoin does not natively support smart contracts.
According to the DFINITY Foundation, the company helping to develop the Internet Computer blockchain, native smart contract-enabled transactions on Bitcoin are now possible.
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The Internet computer will act as Bitcoin’s Layer 2, allowing users to hold, send and receive BTC natively without having to use blockchain bridges or third-party solutions.
It is a game-changer for Bitcoin
A press release shared with Invezz on Friday said 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, unable to interact with each other. In the case of 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 that the revolutionary functionality brings to Bitcoin include yield farming, lending and payments. The integration therefore removes the need for bridged or packaged bitcoin for users to be able to participate in decentralized ecosystems such as DeFi, GameFi, SocialFi and NFT.
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 its Elliptic Curve Digital Signature Algorithm (ECDSA) implementation. This means that not only do applications run on a robust network, but it also helps unlock unparalleled liquidity.
The Internet computer will allow for fast transactions and low fees, with transactions settled on the Bitcoin blockchain only when necessary.
