The Good Tech Companies - Sui Network Expands Bitcoin Integration Through SatLayer Partnership

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Sway Network expands Bitcoin integration through SatLayer partnership by Ashan Pandey. Blockchain platform Sway has announced integration with Bitcoin restaking platform SatLayer, marking an expansion of Bitcoin-based decentralized finance, BTCFI, capabilities. The integration, scheduled for December 18, 2024, builds upon Sway's previous Bitcoin staking implementation announced in November. The technical framework centers on SatLayer's deployment as smart contracts on the Babylon chain, enabling programmable slashing conditions for Bitcoin assets. This system allows decentralized

Starting point is 00:00:41 applications to utilize Bitcoin for security and liquidity purposes across various services, including bridges, exchanges, and oracle systems. Several projects within the Sway ecosystem plan to implement this technology, including Navi, Sweeland, Cetus, Aftermath, and Ica. These implementations will focus on developing Bitcoin-validated services, BVSs, within the Move Programming Language environment. The integration includes support for Bitcoin Liquid Staking Tokens, LSTs, through partnerships with financial protocols Lombard Finance and Lorenzo Protocol. This framework aims to provide applications built on Sway with access to Bitcoin's liquidity pool,

Starting point is 00:01:23 estimated at nearly $2 trillion in market value. Technical implementation of the system involves multiple components. 1. Bitcoin staking through Babylon's protocol. 2. Restaking functionality via SAT layer. 3. Smart contract deployment for programmable slashing. 4. Integration with existing Sway-based applications. 5. Implementation of liquid staking tokens. The development represents a continuation of Sway's November announcement regarding Bitcoin staking capabilities, which involved collaboration between Babylon, Lombard Finance, and Cubist. SatLayer serves as Babylon's designated partner for restaking operations. From a technical perspective, the integration

Starting point is 00:02:05 utilizes Sway's object-centric model and the Move programming language to enable parallel execution of transactions. This architecture aims to maintain sub-second transaction finality while incorporating Bitcoin's security model. The partnership forms part of a broader trend in blockchain development, where platforms seek to bridge traditional cryptocurrency assets with newer decentralized finance capabilities. This approach attempts to address limitations in Bitcoin's programmability while maintaining its security characteristics. Babylon's involvement brings additional technical capabilities through their Bitcoin staking protocol, which enables Bitcoin holders to participate in proof-of-stake systems without

Starting point is 00:02:44 requiring third-party custody services. This self-custodial approach differentiates the implementation from traditional wrapped token solutions. The development team behind SAD Layer includes MIT alumni, while Babylon's technical leadership includes Stanford professor David Zay, known for his work in wireless communications algorithms. The technical implementation builds on research and consensus protocols and layer-one blockchain architecture. This integration represents a significant technical development in the blockchain sector's efforts to expand Bitcoin's utility beyond its original design as a peer-to-peer electronic cash system.

Starting point is 00:03:20 By enabling Bitcoin assets to interact with smart contract platforms, the system aims to increase the cryptocurrency's role in decentralized finance operations. Don't forget to like and share the story. 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 HackerNoon story, read by Artificial Intelligence. Visit HackerNoon.com to read, write, learn and publish.

The Good Tech Companies - Sui Network Expands Bitcoin Integration Through SatLayer Partnership

There aren't comments yet for this episode. Click on any sentence in the transcript to leave a comment.