The Bitfinity Network, a new layer-2 (L2) Bitcoin solution, has launched with an investment of 12 million USD aimed at creating DeFi features compatible with the Ethereum Virtual Machine (EVM) for Bitcoin.
The project has received support from institutional investors such as Polychain and ParaFi in early 2024, along with 5 million USD from over-the-counter (OTC) Token sales — primarily contributed by the community.
According to a press release sent to TinTucBitcoin, this Bitcoin L2 will use the Chain Merge Technology of the Internet Computer Protocol (ICP) to allow native Bitcoin assets 'to operate in an Ethereum-compatible ecosystem.'
After the recent price of BTC surpassed 92,000 USD and interest in the utility of this asset goes beyond a store of value, new L2 solutions are opening up new opportunities for Bitcoin (BTC).
Support from investors
The fundraising round includes 7 million USD from prominent investors, including Polychain's Beacon Fund, ParaFi, Draft Ventures, and Warburg Serres, along with other investors.
Supported by grassroots contributors and influencers in the crypto space, an additional 5 million USD raised primarily from the community will help drive adoption and development of the Bitfinity Network platform.
A spokesperson from Bitfinity told TinTucBitcoin, 'With institutional ETFs on the horizon and a new regime marking Bitcoin becoming more accessible to organizations,' the platform is witnessing a shift in momentum.
'At Bitfinity, we […] are at the forefront of developing a sidechain infrastructure layer to enhance scalability, unlock cross-chain features, and expand Bitcoin applications.'
Security improvements and DApp storage plans
A representative from Bitfinity informed TinTucBitcoin that the security of the L2 network is reinforced with 'a strong proof-of-stake protocol leveraging Chain-Key technology.'
'Chain-Key supports large signing committees that can handle Bitcoin Schnorr and ECDSA transactions, providing stronger security than traditional multi-sigs used by most L2s.'
A spokesperson also explained that the ecosystem plans to store decentralized applications (DApps) such as Sonic, Chapswap, Lendfinity, and Omnity Bridge.
'Bitfinity is backed by the founder of Liquity, a lending and borrowing protocol with a total value locked (TVL) of up to billions of USD, and we plan to introduce similar solutions on our platform soon.'
Internet Computer usage increases 13 times
Driven by native BTC applications, ICP's cross-chain messaging protocol Chain Fusion has seen a usage increase of up to 1,230% compared to the previous year, according to a report on November 4 from the Dfinity Fund developer.
This increase is contributed by BTC applications such as Rainbow Protocol, Tap Protocol, and Bitfinity, using ICP to deploy smart contracts and complex programming on the BTC network.
The Dfinity Fund told TinTucBitcoin that Chain Fusion makes smart contracts for BTC feasible through ICP by 'interacting directly' with the network 'without the need for trusted bridges.'
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