Dfinity Foundation Launches Chain-Key Bitcoin, a Native Internet Computer BTC Derivative Token

On April 3, 2023, the Dfinity Foundation, a improvement squad down the Internet Computer (ICP) network, announced the motorboat of a autochthonal ICP token called “chain-key bitcoin” oregon “ckBTC.” The bitcoin derivative is backed 1:1 with the starring cryptocurrency asset. On Monday, Dfinity elaborate that the exertion “builds connected the protocol-level integration with the Bitcoin network.”

Breaking Away from Custodians and Bridges: The Benefits of Chain-Key Bitcoin’s Smart Contract-Based System

On Twitter, the Dfinity Foundation announced the afloat merchandise of chain-key bitcoin, besides known arsenic ckBTC. “Proposals 115468, 115470 & 115473 person been adopted with flying colors,” the squad explained. “Many acknowledgment to each the [ICP] radical who voted manually to marque this happen.” According to a blog post, ckBTC is backed 1:1 with bitcoin (BTC), and the strategy operates with “centralized custodians, nary bridges, and nary accepted unreality providers.”

The ICP-based bitcoin derivative is considered a “significant breakthrough successful blockchain interoperability,” and the exertion is integrated with Bitcoin astatine the protocol level, according to the Dfinity blog post. The ckBTC strategy uses vaults called canisters, which enactment with a astute declaration alternatively of relying connected a custodian oregon bridge. Essentially, to get ckBTC, a idiosyncratic needs to deposit BTC successful speech for the ICP token, and withdrawals enactment the aforesaid mode erstwhile ckBTC is redeemed for existent bitcoin.

“Any canister tin taxable Bitcoin transactions to the Bitcoin web done ICP nodes, acknowledgment to the nonstop protocol-level integration,” Dfinity explains. The institution insists that the exertion has important imaginable and tin adhd to caller usage cases.

“[Native cross-chain technology] has the imaginable to alteration caller cross-chain capabilities and unleash a plethora of 100% on-chain services, specified arsenic multi-token transactions oregon multi-token wallet systems, which would greatly streamline the crypto idiosyncratic experience,” notes Dfinity’s blog post.

The announcement further details that respective ICP-based decentralized applications (dapps), including Openchat, Iclighthouse, Plethora Game, and Distrikt App, already enactment ckBTC. While galore blockchains person bitcoin derivative tokens, astir trust connected bridges oregon custodians. For example, the largest bitcoin derivative WBTC leverages the custodian Bitgo for minting and redemption purposes.

What imaginable bash you spot successful the autochthonal cross-chain exertion down ckBTC, and however bash you deliberation it volition interaction the aboriginal of blockchain interoperability? Share your thoughts astir this taxable successful the comments conception below.

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