A report from the Dfinity Foundation on November 4 pointed out that the usage of the Internet Computer's Chain Fusion cross-chain protocol grew by 1230% year-on-year, mainly driven by Bitcoin-native applications.
Article by: Internet Computer
Source: Cointelegraph
Article compiled by: Catherine
According to a report released by developer Dfinity Foundation on November 4, the usage of the Internet Computer's cross-chain messaging protocol Chain Fusion increased by 1,230% year-on-year, primarily from Bitcoin-native applications.
Dfinity stated that Bitcoin applications, including Rainbow Protocol, Tap Protocol, and Bitfinity, are using the Internet Computer to deploy smart contracts and other complex programs on the Bitcoin network.
Developers told Cointelegraph in a statement that Chain Fusion 'enables smart contracts for Bitcoin, as ICP can interact directly with the Bitcoin network without the need for any trusted bridge.'
According to cryptocurrency exchange Coinbase, the Internet Computer 'is a set of protocols that allows independent data centers around the world to work together to provide a decentralized alternative to current centralized internet cloud providers.'
Dfinity's data shows that network activity across all Internet Computer protocols increased by 150% year-on-year.
The Taproot upgrade to the Bitcoin network in 2021 triggered a surge in Bitcoin-native decentralized exchanges (DEXs) and Layer 2 (L2) scaling solutions; according to DefiLlama, the total locked value (TVL) on the Bitcoin network has now surpassed $2.6 billion.
Alex Luce, CEO of Bitcoin developer Rebar Labs, told Cointelegraph in October that Bitcoin-native DeFi is still in its early stages and constrained by limited interoperability between DEXs.
'The interoperability of these DEXs on Bitcoin is weak, and liquidity is quite fragmented,' Luce said, noting he is developing a product called Rebar Shield to facilitate interoperability among decentralized DEX ecosystems on Bitcoin.
The network needs 'someone to intervene, balance prices, and help users execute,' Luce said.
According to Dfinity's Internet Computer ecosystem report, the next focus of Chain Fusion is integration with Solana.
According to data from DefiLlama, Solana's Total Value Locked (TVL) surged from less than $250 million at the beginning of 2023 to nearly $6 billion as of November 4.
In August, the artificial intelligence company DecideAI stated that it had fully migrated its AI model to the Internet Computer blockchain, reportedly marking the model's debut on the chain.
