Just 333 ICP Can Make You a Crypto Millionaire
#ICP provides #比特币 the missing smart contract functionality and opens up endless possibilities for dapps and innovation.
The integration of the Internet Computer (ICP) with Bitcoin allows ICP smart contracts to interact directly with the Bitcoin network.
Why this matters
The integration with Bitcoin is important because it brings smart contract functionality to Bitcoin, which does not have a native smart contract platform, opening up new possibilities for DeFi and dapp development. For example, ICP smart contracts can directly hold, receive and send BTC, and can also facilitate the creation of ckBTC tokens backed 1:1 by BTC.
How it works
Smart contracts running on ICP can interact directly with the Bitcoin network without the use of a bridge. This is possible because ICP nodes can fetch and verify the Bitcoin network's blocks, which then make them available for smart contracts to query and read. Smart contracts can also sign and send Bitcoin transactions, allowing them to hold BTC directly.
This direct Bitcoin integration uses two features:
Threshold ECDSA and Threshold Schnorr: Smart contracts can have a key that is stored in a secure and decentralized manner using chain key cryptography. This key can be used to digitally sign messages. ECDSA and Schnorr are compatible with the Bitcoin blockchain, enabling smart contracts to sign Bitcoin transactions.
Bitcoin Adapter: ICP has a subnet whose nodes participate in the Bitcoin network. These nodes are used to fetch Bitcoin status and blocks, and send transactions to the network.
The following figure shows the process of smart contract interaction with the Bitcoin network.
At the protocol level, both the Bitcoin Adapter and the ChainKey ECDSA functionality expose APIs on the admin jar.
When a container wants to make a Bitcoin transaction, it sends a request to the Bitcoin subnet hosting the Bitcoin container, which contains the ICP's on-chain Bitcoin state. The request is sent to the Bitcoin network via the Bitcoin adapter and processed asynchronously by Bitcoin.
The main value of a chain key token such as ckBTC is that it can be transferred with short finality times (within seconds) and at a fraction of the cost of transactions on the token’s native network (in this case, BTC transactions on Bitcoin).
Use Cases
Bitcoin integration supports basic and advanced use cases, such as decentralized exchanges or using Bitcoin inscriptions.
The ckBTC token is suitable for common use cases of holding, transferring and trading BTC.
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