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 has increased by 1,230% year-on-year, primarily driven by 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 because ICP can interact directly with the Bitcoin network without using any trusted chain bridges."
According to cryptocurrency exchange Coinbase, the Internet Computer "is a set of protocols that allows independent data centers around the world to come together to provide a decentralized alternative to current centralized internet cloud providers."
Dfinity's data shows that network activity for all Internet Computer protocols has increased by 150% year-on-year.
The Bitcoin network's Taproot upgrade in 2021 triggered a surge in Bitcoin-native decentralized exchanges (DEX) and Layer 2 (L2) scaling solutions. According to DefiLlama, the total locked value (TVL) on the Bitcoin network has now exceeded $2.6 billion.
Bitcoin developer Rebar Labs' CEO Alex Luce told Cointelegraph in October that Bitcoin-native DeFi is still in its infancy and is constrained by limited interoperability between DEXs.
"The interoperability of these DEXs on Bitcoin is weak, and liquidity is very fragmented," Luce said, who is developing a product called Rebar Shield to facilitate interoperability between 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, Chain Fusion's next focus is on integration with Solana.
According to data from DefiLlama, Solana's TVL surged from less than $250 million at the beginning of 2023 to nearly $6 billion as of November 4.
In August, AI company DecideAI stated that it has fully migrated its AI models to the Internet Computer blockchain, reportedly marking the first time the models have been launched on-chain.
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