Cardano unlocks $1.3T Bitcoin liquidity with BitcoinOS bridge integration

11/11/2024 17:50
Cardano unlocks $1.3T Bitcoin liquidity with BitcoinOS bridge integration

Cardano is set to unlock $1.3 trillion in Bitcoin liquidity through a BitcoinOS integration, enhancing DeFi and cross-chain functionality with zero-knowledge cryptography.

Update (Oct. 25, 12:06 am UTC): This article has been updated to add commentary from Edan Yago.

Cardano is set to gain access to $1.3 trillion in Bitcoin liquidity for its decentralized finance (DeFi) ecosystem through a new integration with BitcoinOS (BOS), a Bitcoin smart contract platform.

According to a press release shared with Cointelegraph, the integration aims to allow Cardano users to securely access Bitcoin (BTC) without intermediaries in a move toward improved cross-chain functionality and DeFi expansion.

Zero-knowledge (ZK) cryptography will play a key role in the collaboration, facilitating a trustless method where BOS can integrate BTC assets into Cardano through verified transactions that do not involve third parties.

Speaking with Cointelegraph, Edan Yago, the CEO and co-founder of BitcoinOS, explained that “Cardano and its community have a lot in common with Bitcoiners.”

“Cardano has a reputation for building for the long term while respecting security and decentralization […] BOS has shown that it is possible to have smart contract functionality without major changes to its consensus code.”

Related: Cardano hosts first legally enforceable contract in Argentina

BTC liquidity on Cardano

The BOS Grail bridge is a key integration component, providing a trustless connection powered by BOS’ ZK BitSNARK verification protocol.

ZK technology allows BTC transactions and assets to be bridged onto Cardano’s blockchain, benefiting Cardano-native De”

Related: Cardano hosts first legally enforceable contract in Argentina

BTC liquidity on Cardano

The BOS Grail bridge is a key integration component, providing a trustless connection powered by BOS’ ZK BitSNARK verification protocol.

ZK technology allows BTC transactions and assets to be bridged onto Cardano’s blockchain, benefiting Cardano-native DeFi projects without sacrificing decentralization or security.

With the BOS integration on Cardano, Bitcoin’s market capitalization of around $1.3 trillion at the time of writing will become accessible.

Technology, Cardano, zk-STARK, Bitcoin Adoption

Chart depicting Bitcoin’s market capitalization, currently around $1.3 trillion. Source: CoinMarketCap

Related: BitcoinOS ‘open-sources’ BitSNARK verification for enhanced privacy

Crosschain capabilities 

According to a press release shared with Cointelegraph, Emurgo, a founding entity behind Cardano’s Web3 adoption efforts, views the collaboration as a step toward a more interconnected space.

Ken Kodama, CEO of Emurgo, explained that the integration has “the potential to unlock new cross-chain capabilities” and could help drive the adoption of DeFi.

Kodama said that BOS’ bridge and ZK tech could “further strengthen Cardano” by opening access for the layer-1 blockchain’s “users, projects, and developers” to a secure and trustless path to BTC.

Related: Bitcoin mainnet receives first-ever verified ZK-proof

The BitcoinOS Grail bridge

On Sept. 10, BOS partnered with the layer-2 (L2) scaling solution Merlin Chain to deploy the BitcoinOS Grail bridge and improve cross-chain transactions without centralized trust mechanisms.

Merlin Chain founder Jeff Yin told Cointelegraph that the partnership would provide users with a “trustless, decentralized” bridge for “Bitcoin-native assets.”

The bridge establishes ZK-proof-powered trustless bridging written directly onto the BTC blockchain, eliminating the need for centralized security measures such as multisig or multiparty computation.

Yin described the development as “just the beginning” as the collaboration pushes toward a more “interoperable Bitcoin ecosystem.”

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