It has been announced that the Internet Computer will be rolling out integrations with Bitcoin and Ethereum by the end of the year, as part of its vision for 2022 and beyond.
A public blockchain and protocol, the Internet Computer, allowing developers to implement smart contracts and decentralised apps directly on the blockchain, eliminating the need for third-party services. Following several years of development, Dfinity, a Zurich-based organisation, incubated and released it in May 2021 after several years of work.
As part of Dfinity’s “Chromium Satoshi Release,” which is scheduled for release in the first quarter of 2022, the direct Bitcoin integration will be made available to users. Because it would use “Chain Key cryptography” to integrate smart contracts into the Bitcoin blockchain, it will eliminate the need for a bridge, which might expose the network to hostile actors.
Berto Parga Pena, a member of the Dfinity community, noted that Chain Key cryptography is “one of the basic innovations that has enabled the Internet Computer to expand to billions of nodes.”
Diego Prats, director of product at Dfinity, stated in a roadmap article published on Saturday that “smart contracts on the Internet Computer will be able to retain, transfer and receive Bitcoin, without the need for private keys.”
The “Vanadium Vitalik Release” is scheduled for release in Q3 2022, which will integrate the cryptocurrency with Ethereum’s smart contracts. Despite the fact that Dfinity has not released any additional information on the integration, vice president of communications Michael Less clarified the situation to Cointelegraph:
In other words, whenever you conduct a Bitcoin transaction on an Internet computer, the Bitcoin ledger is updated, as opposed to what you see today, which is a bridge.” Like a Bitcoin or an Ether that has been wrapped.”
In his explanation, Less stated that Dfinity has prioritised these connections in order to aid in the company’s vision of a “multichain future.” “If Bitcoin is going to be around forever, what services do we truly provide?” he asked rhetorically. Combining all of these networks directly provides the optimum user experience.”
Earlier last month, Dfinity enabled smart contracts (in its ecosystem, referred to as “Canisters”) to maintain their own reserves of ICP tokens. As of today, the ICP can handle 250,000 inquiries per second, with transaction finality times ranging from one to two seconds.
“The ICP on Canisters function was the key feature that made it viable, and it will almost certainly go crazy once direct integration with BTC and ETH is launched,” Kyle Peacock, chief software developer at Dfinity, told Cointelegraph.
It was reported on Friday by Cointelegraph that the Internet Computer blockchain has welcomed its first decentralised exchange (DEX), Sonic, and that at least two other exchanges were in the pipeline.
It looks that the future DEX InfinitySwap, which is supported by Polychain Capital, is gearing ready to take advantage of the upcoming integration with Bitcoin. According to Lee, users will be able to stake their Bitcoin (BTC) as liquidity providers through the use of this service.
A flurry of positive news fueled a 56 percent increase in ICP token price in the first five days of the new year, but it was one of the worst-performing cryptocurrencies in 2021, losing 97 percent of its value from its all-time high in May of the previous year. On January 4, Binance stated that it would offer a financial instrument that would allow traders to directly exchange ICP into and out of Ethereum’s native currency, Ether (ETH).
Dominic Williams, an Ethereum technologist who went on to become a co-founder and chief scientist of Dfinity, was the inspiration for the concept of a permanent world computer.