The Good Tech Companies - Tap Protocol & ICP Empower Bitcoin with Decentralized Finance at Its Core

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. TAP Protocol and ICP empower Bitcoin with decentralized finance at its core. By Ashan Pandey, TAP Protocol has partnered with the Internet Computer Protocol ICP and the DFINITY Foundation to develop decentralized finance DeFi applications directly on Bitcoin's Layer 1 blockchain. This collaboration aims to enhance Bitcoin's functionality beyond its traditional role as a digital store of value. Bitcoin has long been recognized as a reliable digital asset, often referred to as, digital gold. However, its primary function has been limited to storing and

Starting point is 00:00:40 transferring value, with most decentralized applications, DAPPs, and financial activities occurring outside its main network. This reliance on external solutions has posed challenges in fully utilizing Bitcoin's potential for broader financial applications. TAP protocol seeks to change this dynamic by enabling developers to create and deploy smart contracts, self-executing contracts with the terms directly written into code, on Bitcoin's native blockchain. Unlike previous attempts that required third-party bridges, TAP Protocol's approach eliminates the need for trusted intermediaries, ensuring a more secure and decentralized environment. A milestone achievement. Since its launch, TAP Protocol has made strides in building infrastructure that allows for the seamless integration of DeFi on Bitcoin. One of its notable achievements is the launch of

Starting point is 00:01:29 TaperooSwap, the first decentralized exchange, DEX, built directly on Bitcoin. This platform allows users to trade cryptocurrencies without relying on centralized exchanges, enhancing security and transparency. Benny, the founder and lead developer of TAP Protocol, expressed his excitement about the partnership. Working with ICP unlocks a huge amount of utility and functionality on Bitcoin. We're looking forward to exploring how we can generate more value on-chain for both Bitcoin holders and the growing developer community. How it works? The collaboration focuses on building smart contracts that operate natively on Bitcoin's Layer 1, the foundational layer of the Bitcoin network where transactions are recorded.

Starting point is 00:02:11 By avoiding the use of trusted bridges, external systems that connect different blockchains, TAP protocol ensures that all transactions remain secure and decentralized. Here's a simplified breakdown of the process. 1. Development of smart contracts. TAP protocol, in collaboration with ICP, develops smart contracts tailored for Bitcoin's layer 1. 2. Deployment on Bitcoin. These smart contracts are deployed directly onto Bitcoin's blockchain, allowing for decentralized applications to operate without relying on external platforms. 3. User Interaction. Developers and users can interact with these DAPPs seamlessly, enjoying the benefits of Bitcoin's security and the innovative features of DeFi. A new era for Bitcoin. This partnership marks a pivotal moment for Bitcoin,

Starting point is 00:03:00 traditionally seen as a stable and secure asset rather than a versatile platform for financial innovation. By integrating TAP Protocol's expertise with ICP's robust infrastructure, the collaboration opens the door to a more dynamic and functional Bitcoin ecosystem. For young enthusiasts and those new to the world of cryptocurrencies, this development means more opportunities to engage with Bitcoin beyond just buying and holding. It paves the way for new financial tools and services that are decentralized, transparent, and accessible to everyone. Final thoughts. The collaboration between TAP protocol and ICP is set to drive significant

Starting point is 00:03:36 advancements in the blockchain space. As more DeFi applications emerge on Bitcoin's layer 1, the network's utility and adoption are expected to grow, attracting a wider range of users and developers. 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 - Tap Protocol & ICP Empower Bitcoin with Decentralized Finance at Its Core

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