The Good Tech Companies - Internet Computer Protocol Enhances Bitcoin Functionality

Episode Date: August 13, 2024

This story was originally published on HackerNoon at: https://hackernoon.com/internet-computer-protocol-enhances-bitcoin-functionality. The Internet Computer Protocol (ICP) has implemented significant upgrades that promise to expand the capabilities of the Bitcoin network. Check more stories related to web3 at: https://hackernoon.com/c/web3. You can also check exclusive content about #blockchain, #bitcoin, #cryptocurrency, #dlt, #icp, #internet-computer-protocol, #defi, #good-company, and more. This story was written by: @ishanpandey. Learn more about this writer by checking @ishanpandey's about page, and for more stories, please visit hackernoon.com. The Internet Computer Protocol (ICP) has implemented significant upgrades that promise to expand the capabilities of the Bitcoin network. These enhancements include the integration of threshold-Schnorr signatures and on-chain Bitcoin block headers. These upgrades are expected to significantly boost development within the Bitcoin ecosystem.

This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Internet Computer Protocol Enhances Bitcoin Functionality By Ashan Pandey The Internet Computer Protocol, ICP, has recently implemented significant upgrades that promise to expand the capabilities of the Bitcoin network. The senhancements, part of the deuterium milestone, include the integration of threshold Schnorr signatures and on-chain Bitcoin block headers. Bitcoin, originally conceived as digital gold, is evolving into a foundation for a decentralized economy. The rise of runes and BRC20 tokens

demonstrates increasing activity within the Bitcoin ecosystem. However, Bitcoin's lack of native smart contract support has limited developers' ability to build complex applications on the network. Key IMPLEMENTATIONS1. Threshold Schnorr signatures This feature allows ICP smart contracts to directly sign Schnorr signatures, enabling various functions, etching runes inscribing ordinals sending and receiving BRC20 tokens on Bitcoin L1 signing Taproot transactions too. On chain Bitcoin block headers previously, ICP only supported Bitcoin's UTXO set. The new implementation provides access to full Bitcoin block content, crucial for emerging

meta-protocols that utilize block header data. Impact on development These upgrades are expected to significantly boost development within the Bitcoin ecosystem. Developers can now create a wider range of applications, including decentralized finance, DeFi, lending markets backed by Ordinal's infrastructure improvements like decentralized indexers enhanced cross-chain asset transfers ecosystem benefits Several projects within the ICP ecosystem are poised to leverage these new capabilities. 1. Omniti Network plans to handle Bitcoin taproot assets aims to connect with blockchains using ED25519 signature schemes will use block header data for trustless verification

of Bitcoin blocks 2. Bionic intends to use threshold Schnorr signatures for cross-chain asset transfers operates as a layer 2 solution for Bitcoin ordinals, offering efficient trading and minting of Bitcoin-based digital assets 3. Helix Markets users will be able to trade ICP tokens and tokens from other ecosystems without bridging or wrapping assets potential to integrate with larger crypto ecosystems, accessing millions of active users and substantial trading volumes implications for the future the integration of threshold Schnorr signatures and on-chain Bitcoin block headers by ICP represents a significant step forward in blockchain interoperability. These advancements enable developers to create more

sophisticated applications that leverage Bitcoin's liquidity and user base without relying on traditional bridging or wrapping methods. As the Bitcoin ecosystem continues to evolve beyond its original use case, these enhancements provide the tools necessary for developers to build innovative solutions. The ability to interact seamlessly with multiple blockchain networks opens up new possibilities for decentralized applications and services. While these developments are promising, it's important to note that the long-term impact and adoption of these new capabilities remain to be seen. A swift any technological advancement in the rapidly changing world of blockchain and

cryptocurrency, ongoing research and development will be crucial to realizing the full potential of these innovations. Tip Vested Interest Disclosure. This author is an independent contributor publishing via our business blogging program. Hacker Noon has reviewed the report for quality, but the claims herein belong to the author. Hashtag D-Y-O-R. Thank you for listening to this Hacker Noon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.