Cardano has announced the integration of the Bitcoin Rollup protocol BitcoinOS, pivoting to become a Bitcoin L2, aiming to release up to $1.3 trillion in Bitcoin liquidity for its ecosystem. Unlike solutions that rely on centralized custodians, Cardano enables users to transfer Bitcoin to the Cardano ecosystem without trust through the Grail bridge of BitcoinOS, participating in various application activities such as DeFi. (Background: Cardano founder criticizes Ethereum as too authoritarian! Development direction overly reliant on Vitalik's decisions, ADA is more democratic) (Background supplement: Cardano releases verification node 'Node 9.0' as it approaches the final step of the Chang upgrade, summarizing five stages of the roadmap) Cardano co-founder Charles Hoskinson, who was one of the early Bitcoin enthusiasts, has criticized Bitcoin for its technical limitations on the development of diverse application scenarios and chose to develop his own Layer 1 blockchain, which is Cardano. Now, with the growing concern of awakening the dormant liquidity of Bitcoin, Cardano has also announced the integration of the Bitcoin Rollup protocol BitcoinOS, transforming into a Bitcoin L2, hoping to release over $1.3 trillion in Bitcoin liquidity for its ecosystem. Hoskinson described the groundbreaking technology of BitcoinOS in an interview, particularly the successful verification of the first ZK proof on the Bitcoin mainnet at the end of July, which provided Bitcoin with 'eyes and a brain,' enabling it to recognize and understand activities on other chains. He further explained that the significance of this technology lies in enabling Bitcoin to interconnect with other blockchain ecosystems without trust. BREAKING: The founder of Cardano, Charles Hoskinson, just reversed his stance on Bitcoin and announced that Cardano L1 is pivoting to become a Bitcoin L2 pic.twitter.com/UCpGnvMHMt — Ordinal News (@Ordinal_News) October 29, 2024 Three highlights of Cardano's integration with BitcoinOS In the joint statement, Cardano emphasized that it is based on the same UTXO transaction model as Bitcoin, which enhances compatibility between the two chains, allowing Cardano smart contracts to run directly on the Bitcoin mainnet without reliance on bridging. Additionally, Cardano adopts a layered architecture, prioritizing stability in the settlement layer, optimizing scalability and flexibility for the computation layer. Cardano stated that this design philosophy aligns with the stance of Bitcoin supporters in the block size debate. Cardano pointed out that, unlike wrapped Bitcoin such as WBTC that relies on centralized custodians, Bitcoin users can transfer BTC to the Cardano ecosystem without trust through the BitcoinOS Grail bridge. The official statement said: 'Unlike all previous solutions, this bridging method allows for secure asset transfers between chains without trusting a third party.' Cardano further explained that once users transfer BTC to Cardano, they can participate in over 1,300 protocols on the network, such as exchanging BTC for fiat or other assets on decentralized exchanges like SundaeSwap, or engaging in decentralized lending through Liqwid. Cardano holds an optimistic view of this demand, noting that over 147,000 WBTC are currently circulating on Ethereum, with a total market value of approximately $9.75 billion, while Cardano's DeFi ecosystem TVL is only about $225 million, indicating significant growth potential. A bullish catalyst for ADA? Cardano, which is optimistic about Bitcoin's imminent rebirth, believes that new waves of investors brought by Ordinals, BRC-20, and Bitcoin ETFs will not just want to buy Bitcoin but also seek other assets with seemingly higher growth potential. Cardano indicated that it will play a leading role in the renaissance of Bitcoin, and its native token ADA will also benefit from the rise, whether in governance participation or gas payments, the fundamental value of ADA will increase. ADA rose nearly 4%. However, according to CoinGecko data, ADA is currently at $0.3488, having risen 3.6% in the last 24 hours, seemingly more driven by Bitcoin's rise. Currently, the top three wrapped Bitcoin volumes are WBTC, BTCB, and SolvBTC, and with Cardano's announcement to enter this field with a trustless solution (the most representative of which is tBTC), whether it will change the existing market landscape is worth looking forward to. Related Reports Cardano suffers DDoS attack! Officially mocks: Thank you idiot hackers for sending money, ADA volatility? Cardano (ADA) proposes 'integration of Bitcoin Cash' with over 65% approval! Founder: Will become the fastest PoW chain Cardano founder: Bitcoin Layer 2 has insufficient potential, just taking advantage of BTC halving speculation 'Cardano announces transformation to Bitcoin L2: integration of BitcoinOS releases $1.3 trillion liquidity, can ADA benefit?' This article was first published in BlockTempo (the most influential blockchain news media).

#BTC