Fun

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

News Feed - 2023-04-04 03:04:05

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


On April 3, 2023, the Dfinity Foundation, a development team behind the Internet Computer (ICP) network, announced the launch of a native ICP token called “chain-key bitcoin” or “ckBTC.” The bitcoin derivative is backed 1:1 with the leading cryptocurrency asset. On Monday, Dfinity detailed that the technology “builds on 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 full release of chain-key bitcoin, also known as ckBTC. “Proposals 115468, 115470 & 115473 have been adopted with flying colors,” the team explained. “Many thanks to all the [ICP] people who voted manually to make this happen.” According to a blog post, ckBTC is backed 1:1 with bitcoin (BTC), and the system operates with “centralized custodians, no bridges, and no traditional cloud providers.”


The ICP-based bitcoin derivative is considered a “significant breakthrough in blockchain interoperability,” and the technology is integrated with Bitcoin at the protocol level, according to the Dfinity blog post. The ckBTC system uses vaults called canisters, which work with a smart contract instead of relying on a custodian or bridge. Essentially, to obtain ckBTC, a person needs to deposit BTC in exchange for the ICP token, and withdrawals work the same way when ckBTC is redeemed for real bitcoin.


“Any canister can submit Bitcoin transactions to the Bitcoin network through ICP nodes, thanks to the direct protocol-level integration,” Dfinity explains. The company insists that the technology has significant potential and can add to new use cases.


“[Native cross-chain technology] has the potential to enable new cross-chain capabilities and unleash a plethora of 100% on-chain services, such as multi-token transactions or multi-token wallet systems, which would greatly streamline the crypto user experience,” notes Dfinity’s blog post.


The announcement further details that several ICP-based decentralized applications (dapps), including Openchat, Iclighthouse, Plethora Game, and Distrikt App, already support ckBTC. While many blockchains have bitcoin derivative tokens, most rely on bridges or custodians. For example, the largest bitcoin derivative WBTC leverages the custodian Bitgo for minting and redemption purposes. Tags in this story Bitcoin, BitGo, Blockchain, Blockchain network, blockchain technology, Bridges, Chain-Key Bitcoin, ckBTC, cross-chain technology, Crypto, Cryptocurrency, custodians, decentralized applications, decentralized finance, DEX, dfinity, Dfinity Foundation, Digital Assets, Digital Currency, Distrikt App, Iclighthouse, ICP, ICP nodes, ICP-based, interoperability, multi-token transactions, multi-token wallet systems, on-chain services, Openchat, Plethora Game, protocol-level integration, Smart Contracts, tokenization, Virtual Currency, WBTC


What potential do you see in the native cross-chain technology behind ckBTC, and how do you think it will impact the future of blockchain interoperability? Share your thoughts about this subject in the comments section below. Jamie Redman


Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today. Stablecoin Supply Shift: TUSD Jumps 110% While Others Experience Reductions ALTCOINS | 4 days ago Stablecoin Market Sees Fluctuations With Some Coins Gaining and Others Reducing Supply ALTCOINS | Mar 26, 2023


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBitquery’s New Streaming API is Changing Web3 Infrastructure Space Next articleTwitter Changes Bird Logo to Picture of Doge, Dogecoin Price Surges 23% After the Change Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year


The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales FBI Issues Alert Concerning Malicious State-Sponsored North Korean Hackers Targeting Crypto Firms Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

MicroStrategy stock spikes over 20% as BTC price continues skyward
Derek Andersen5 hours agoMicroStrategy stock spikes over 20% as BTC price continues skywardShort-sellers may be generating some of the gain, but MicroStrategy’s fundamentals are strong.4179 Total views32 Total sharesLi
Savannah Fortis14 hours agoGoogle Cloud to digitize El Salvador’s governance, healthcare and educationGoogle Cloud and the government of El Salvador have entered into a seven-year partnership to digitize the country’
Despite St. Louis Branch Warnings, New York Fed Pumps $108 Billion Into US Economy
Despite St. Louis Branch Warnings, New York Fed Pumps $108 Billion Into US Economy On Wednesday, November 27, the U.S. Federal Reserve pumped $108 billion into the American econo
XRP price could break out as open interest increases
Zoltan Vardai8 hours agoXRP price could break out as open interest increasesDespite a potential breakout, XRP’s price remains tied to developments regarding the lawsuit between the SEC and Ripple.4378 Total views6 Tota
Sentient AI Does Not Equal Intelligent AI – Tau Uses Logic to Make Machines Truly Understand People
Sentient AI Does Not Equal Intelligent AI - Tau Uses Logic to Make Machines Truly Understand People sponsored You’ve probably heard about Google’s LaMDA and the viral
German Crypto Bank Nuri Asks Clients to Withdraw Funds as It Goes Out of Business
German Crypto Bank Nuri Asks Clients to Withdraw Funds as It Goes Out of Business Digital asset platform Nuri has told customers to withdraw their funds in the next two months, aft
Ana Paula Pereira7 hours agoRipple acquires Fortress Trust, expands license portfolio in the USFortress holds a Nevada Trust license for asset custody. Ripple holds more than 30 licenses across the United States.6914 Tot
A Step-by-Step Guide to Splitting ABC Fork Tokens from Bitcoin Cash
A Step-by-Step Guide to Splitting ABC Fork Tokens from Bitcoin Cash On November 15, the Bitcoin Cash blockchain underwent a scheduled upgrade but also the chain
Tristan Greene5 hours agoHSBC trialing quantum-safe financial transaction network in the UKThe venerable British bank became the first to join BT (formerly British Telecom) and Toshiba’s secure quantum “metro” netw
Ana Paula Pereira12 hours agoD.C. Circuit reverses SEC ruling on SPIKES futures, calls it "arbitrary and capricious"The decision relates to an SEC order from 2020 exempting SPIKES Index from the definition of s
Veteran Trader Peter Brandt Says Dogecoin Bear Market Has Ended
Veteran Trader Peter Brandt Says Dogecoin Bear Market Has Ended Veteran trader Peter Brandt says the dogecoin bear market that began in May last year has ended. His comment came af
William Suberg8 hours agoBitcoin price clings to $30K as Fed’s Powell stresses more rate hikesThere’s no room for slacking when it comes to monetary policy tightening, Powell says, as Bitcoin takes a breather from ye