Bitfinity Network is a new Bitcoin Layer 2 (L2) solution that has launched and secured $12 million in funding, aimed at creating decentralized finance (DeFi) capabilities compatible with the Ethereum Virtual Machine (EVM) for Bitcoin.
The project received support from institutional investors such as Polychain and ParaFi in early 2024, alongside a $5 million over-the-counter (OTC) token sale, primarily contributed by the community.
A press release shared with Cointelegraph stated that this Bitcoin L2 will leverage the Chain Fusion technology of the Internet Computer Protocol (ICP) to enable Bitcoin native assets to operate within an Ethereum-compatible ecosystem.
As the BTC price recently broke through $92,000 and interest in the asset's utility exceeded mere value storage, the new L2 solutions open new pathways for Bitcoin.
Support from investors
This round of financing includes $7 million from notable supporters, including Polychain's Beacon Fund, ParaFi, Draft Ventures, and Warburg Serres.
With the support of grassroots contributors and crypto influencers, an additional $5 million raised mainly through the community will help drive the adoption and development of the Bitfinity Network platform.
A spokesperson from Bitfinity told Cointelegraph that the platform is undergoing dynamic changes with the impending institutional ETF and new regulations making it easier for institutions to acquire Bitcoin.
At Bitfinity, we are the first to introduce a sidechain infrastructure layer to enhance scalability, unlock cross-chain capabilities, and broaden the use cases for Bitcoin.
Safety improvements and DApp hosting programs
A Bitfinity spokesperson told Cointelegraph that the security of its L2 network is enhanced by 'leveraging the powerful proof-of-stake protocol of Chain-Key technology.'
Chain-Key support can handle large signature committees capable of processing Bitcoin Schnorr and ECDSA transactions, providing stronger security than the traditional multisignatures used by most L2s.
The spokesperson stated that the ecosystem plans to host decentralized applications (DApps) such as Sonic, Chapswap, Lendfinity, and Omnity Bridge.
Bitfinity has the support of the founder of Liquity, a $1 billion TVL lending protocol, and we plan to launch a similar solution on our platform soon.
Internet Computer usage has increased 13 times
According to a report released by the DFINITY Foundation on November 4, the usage of ICP's cross-chain messaging protocol Chain Fusion has increased by 1,230% year-on-year, driven by Bitcoin native applications.
This surge is attributed to BTC applications like Rainbow Protocol, Tap Protocol, and Bitfinity, which deploy smart contracts and complex programming on the BTC network using ICP.
DFINITY Foundation told Cointelegraph that Chain Fusion achieves Bitcoin smart contracts through direct interaction with the network without the need for trusted bridges.
#BITFINITY #BTF #Polychain #ParaFi
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