Tap Protocol is a Bitcoin-based project that aims to provide users with a more efficient network experience across DeFi, BRC-20, and fractional ownership.
The project aims to increase developer flexibility and accessibility by leveraging decentralized extensions and native bitmap support.
The first smart contract, Swap and LP
Tap Protocol has achieved a major milestone in Bitcoin development by executing the first-ever Bitcoin native smart contracts, exchange, and liquidity pool directly on the Bitcoin Layer 1 mainnet.
The significance of this reality cannot be overstated, this breakthrough enables DeFi on the Bitcoin mainnet to function without relying on layer 2 solutions or rollups, and after working hard to find a solution to a huge challenge, the team can now move forward to transforming the Bitcoin ecosystem, providing unprecedented flexibility and programmability.
The Tap meta-protocol enables a range of new use cases, from theories of digital matter to facilitating seamless token swaps, all natively and securely on Bitcoin.
Why is this important?
This breakthrough is undoubtedly significant, as Bitcoin users can now access smart contracts, exchanges, and liquidity pools that run entirely on Layer 1, processing all computing needs directly on Bitcoin.
This is achieved through the unique features of the Tap Protocol, which integrates assets into eligible systems rather than bridging them to other chains.
“ICP is one such system that acts as a powerful and decentralized workhorse to provide authority in a trust-minimized manner,” said Benny, CEO of Tap Protocol. “We are already exploring other eligible systems.”
Through the Tap Protocol’s embedding mechanism and ICP’s ability to run directly on Bitcoin, Tap meets the requirements of a L1 AMM solution on Bitcoin, which alleviates the need for bridges, layer 2 wallets, or wallet switches, and furthermore, there is no need to rely on or wait for OP_CAT or a modified Bitcoin fork.
This breakthrough ensures that the total value locked (TVL) remains entirely within Bitcoin Layer 1, preventing market fragmentation and leveraging the security of Bitcoin for all DeFi activities.
“In short, the breakthrough is that we’ve proven that inflationary releases on Tier 2 are not necessary — there are already qualified options that can do the job,” Benny added.
How it differs from Tier 2
Unlike traditional Layer 2 solutions that require assets to be moved off-chain, these developments allow all activity to remain on Bitcoin’s mainnet, which ensures users retain the full security of Bitcoin without the additional complexity and risks that come with using Layer 2 protocols.
Tap eliminates the need for specialized Layer 2 wallets, cross-chain bridges, or Wrapped Bitcoin, however, since the protocol is layer-agnostic, it can also be used with Layer 2, giving users the freedom of choice.
In short, Tap provides a secure and straightforward way to use Bitcoin DeFi on Layer 1 while still supporting Layer 2 options.
Self-check
You can check the validity of the Tap claim yourself, this ICP container ID allows you to read the pool smart contract (without a wallet connection), it works similarly to how you get information from a smart contract on Etherscan.
Container ID:
ptba5-hqaaa-aaaal-qjpjq-cai
For example, try this:
1) Enter “swaparoo” under “getTokenInfo” to get the current status of the BTC/swaparoo pool, then click “Query”;
2) Enter "log_0" under "dbGet" and click "query" to view the liquidity data of the deposit;
3) Enter "log_1" under "dbGet" and click "query" to view the data of BTC exchanged for swaparoo.
Ordinal inscription ID link for liquidity top-up:
e1337ba5425080af2c25d333ef327baa66611092e72006eb6c8041334c3931f9i0
Ordinal ID for converting BTC to tokens:
f3f18cd5a64358a146293aae72279fc6b8bd62fc68f5afffa23a934d9c959f6di0
ICP implements threshold Schnorr signatures to enhance Bitcoin integration
As part of the Deuterium milestone, the Internet Computer Protocol (ICP) has integrated threshold Schnorr signatures and on-chain Bitcoin block headers, a development aimed at expanding Bitcoin’s utility in the decentralized economy, enabling new applications that were previously hindered by Bitcoin’s lack of native smart contract support.
ICP introduces threshold Schnorr signatures to enhance Bitcoin compatibility
According to an announcement shared with Bitcoin.com News, with the implementation of threshold Schnorr signatures, ICP smart contracts can now interact directly with Bitcoin, enabling features such as signing Taproot transactions and facilitating decentralized finance (DeFi) applications.
This milestone is expected to drive further development of the Bitcoin ecosystem, supporting emerging protocols such as Ordinal Inscription and the BRC20 standard, which have significantly increased transaction activity on the network. Developers can now leverage the capabilities of ICP to create more advanced protocols on Bitcoin. , more trustless applications.
“Most Bitcoin meta-protocols like Ordinals and BRC20 use Taproot transactions that rely on Schnorr signatures,” Lomesh Dutta, vice president of growth at the DFINITY Foundation, said on Tuesday. “With tSchnorr, ICP smart contracts can now sign Bitcoin transactions natively, enabling developers to create a variety of use cases such as Etched Runes, DeFi lending markets powered by Ordinals, or infrastructure like decentralized indexers.”
The DFINITY Foundation executive added: “We have seen a significant increase in the number of developers adopting tSchnorr, and we believe this will significantly accelerate the growth of the Bitcoin ecosystem.”
The integration also includes access to full Bitcoin block headers, going beyond previous support for Bitcoin’s unspent transaction output (UTXO) set. This feature allows ICP-based projects such as Omnity Network and Bioniq to independently verify Bitcoin blocks without relying on external services.
The ultimate goal is to enhance trustlessness and security of operations, and the ICP development team believes that the advancements brought about by the Deuterium milestone make ICP an important player in the evolving role of Bitcoin in the broader DeFi space.
#TapProtocol #DeFi #BTC☀ #ICP生态 #DFINITY
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