Internet Computer Plans to Integrate Bitcoin and Ethereum
The direct Bitcoin integration will be launched as part of Dfinity’s 'Chromium Satoshi Release,' which is planned for Q1 2022.
When the integration is complete, it will add advanced smart contracts to the Bitcoin blockchain, opening the floodgates to DeFi and other applications. In turn, the incorporation of Bitcoin into DeFi could promote wider DeFi usage that are built leveraging the world’s largest cryptocurrency.
“Smart contracts on the Internet Computer will be able to hold, send and receive Bitcoin, without the need for private keys,” wrote Director of Product at Dfinity, Diego Prats, in a roadmap post.
Meanwhile, the integration with Ethereum is slated for Q3 2022 with the “Vanadium Vitalik Release.” While the developer team is yet to publish any further details about the integration, Vice President of Communications, Michael Less, said in an interview:
“So when you make a transaction on the internet computer in Bitcoin, it actually changes the Bitcoin ledger versus what you see today, with a bridge. It's like a wrapped Bitcoin or wrapped Ether.”
Integrating Bitcoin and DeFi
A developer preview with the release of the API for Bitcoin-enabled canister smart contracts as part of the DFINITY Canister SDK is expected in early February. Future plans will also see the release of a form of wrapped BTC on the Internet Computer.
Bitcoin currently has no real applications beyond being a store of value and an investment tool. If the Internet Computer’s integration were to tap into even a fraction of its value and liquidity, the resulting DeFi ecosystem could be substantial.