Dfinity Foundation’s Internet Computer Blockchain brings smart-contract capabilities and the Bitcoin (BTC), network. This could open the door for new uses cases for the most popular cryptocurrency.
Internet Computer will use its chain key cryptography to connect with Bitcoin. This opens the door for smart contracts that can be hosted on Internet Computer with native BTC addresses, Dfinity Foundation announced Tuesday.
Dominic Williams, founder and chief scientist at Dfinity Foundation, stated that “Internet Computer smart contracts” will have access to bitcoin liquidity and Bitcoin will be able to use the new smart contract functionality without the need for cumbersome and insecure trusted bridging services.
Smart contracts for Internet Computer will have associated BTC addresses. This will allow them to access transactions on the Bitcoin Blockchain. Internet Computer transactions are completed in 2 seconds, as opposed to 40 minutes for Bitcoin transactions. This can be overcome by “Bitcoin bank” which can be used directly on Internet Computer to enable quick 2-second transactions.
Dfinity Foundation launched the $223 million Developer Ecosystem program earlier this year to help further smart contract development and blockchain development. This project was launched in 2014 and has been supported by some of the most prominent crypto venture firms such as Polychain Capital and Andreessen Horowitz.
Dfinity’s recent efforts are part a larger industry initiative to make Bitcoin easier for transactions, decentralize finance, and Web 3.0 more accessible. Open-source network Stacks presented its vision for Bitcoin-centric smart contract using a layer one blockchain and a native bridge in January.
Other developers are working on new applications in preparation for Bitcoin’s highly anticipated Taproot upgrade later in the year. This upgrade was supported by a majority of mining nodes and will allow for soft-fork activation in November.
Related: Evolve, or die: How smart contract are changing the balance of power in the crypto sector
Although Bitcoin has not yet achieved all of the principles laid out in Satoshi Nakamoto’s 2008 whitepaper, namely widespread utility as an electronic cash system, it has become a leading alternative asset. Before undergoing a wide market correction, the Bitcoin network had a market capitalization of over $1 trillion. This growth can be attributed to the growing institutional support for Bitcoin as an asset.