Internet Computer plans to integrate ETH and BTC by the end of 2022
- The network seeks to integrate Bitcoin in Q1 2022 and Ethereum by Q3 2022.
- By integrating Bitcoin, the Internet Computer will introduce smart contracts to the network.
- Reportedly, the smart contracts will be able to hold, send, and receive BTC without private keys.
The Internet Computer (ICP/USD), a public blockchain and protocol that lets developers install smart contracts and decentralized applications (dApps) directly on the blockchain, is planning to roll out Bitcoin (BTC/USD) and Ethereum (ETH/USD) integrations by the end of 2022. The project unveiled this news in its roadmap for this year and beyond.
According to the Internet Computer’s developer, Dfinity Foundation, the BTC integration will introduce a new wave of decentralized finance (DeFi) applications that leverage the flagship cryptocurrency. Reportedly, this integration will come as part of Dfinity’s Chromium Satoshi Release, which is slated for Q1 2022.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Specifically, this launch will add smart contracts to the Bitcoin network using Chain Key Cryptography. This approach would eliminate the need to use a bridge, which might create a gateway for malicious actors to attack the network.
Dfinity’s Director of Product, Diego Prats, pointed out that smart contracts on the Internet Computer will have the capacity to hold, send, and receive BTC without the need for private keys.
Plans to make DeFi more scalable, faster, and cheaper
Commenting on these plans, John Egan, the CEO of L’Atelier BNP Paribas, said the project’s plans are realistic and achievable. He added that developers would soon start implementing their smart contracts against the Internet Computer’s Bitcoin API very soon.
Egan further noted that,
This will give birth to a Bitcoin-based DeFi ecosystem. Simply put, IC is extending Ethereum-like functionality to Bitcoin albeit in a manner that is much faster, more scalable, and less expensive than current options. Given Bitcoin’s absolute size of almost $1 trillion and its relative size to the cryptocurrency space (almost 40% market share), the resulting DeFi ecosystem could be quite large.
Moving on to the Ethereum integration, IC slates it for Q3 this year. This launch will come with the Vanadium Vitalik Release. Dfinity has not yet published more details about this rollout. However, Dfinity Vice President of Communications Michael Less said,
So when you make a transaction on the internet computer in Bitcoin, it actually changes the Bitcoin ledger versus what you see today, with a bridge. It’s like a wrapped Bitcoin or wrapped Ether.
Creating a multi-chain future
Less added that ICP has chosen to introduce these integrations to help further its vision of a multi-chain future. This news comes after Dfinity deployed smart contracts dubbed Canisters in December last year. On top of this, the Internet Computer onboarded Sonic, the first decentralized exchange (DEX) on its network, on January 28. Additionally, the network is working to onboard two more.
This news comes as ICP, the native token of the Internet Computer, continues performing poorly after losing 5.78% of its value over the past 24 hours to trade at $19.09 (£14.20).