Cardano is preparing to unlock more than $1.3 trillion in Bitcoin liquidity for its decentralized finance (DeFi) ecosystem through a new integration with BitcoinOS (BOS), the Bitcoin smart contract platform.
This integration aims to allow Cardano users to securely access Bitcoin (BTC) without intermediaries, a move towards improving cross-chain functionality and expanding DeFi.
Zero-knowledge (ZK) cryptography will play a crucial role in the integration process, leveraging the trustless approach where BOS can integrate BTC assets into Cardano through verified transactions without third-party involvement.
The BOS Grail bridge is a key integrated component, providing a trustless connection supported by BOS's ZK-SNARKs verification protocol.
ZK technology allows BTC transactions and assets to be connected to the Cardano blockchain, benefiting native Cardano DeFi projects without compromising decentralization or security.
With the BOS integration on Cardano, the network can easily access Bitcoin's market capitalization, currently around $1.3 trillion.
Chart depicting Bitcoin's market capitalization, currently around $1.3 trillion | Source: CoinMarketCap
According to the press release, Emurgo, the founding entity behind Cardano's Web3 efforts, sees this collaboration as a step towards a more interconnected space.
Emurgo CEO Ken Kodama explained that this integration has the "potential to unlock new cross-chain capabilities" and could help drive DeFi adoption.
Kodama stated that BOS's bridge and ZK technology can "propel Cardano" by securely and trustlessly providing BTC access for the blockchain's "users, projects, and developers".
On September 10, BOS partnered with the layer-2 (L2) scaling solution Merlin Chain to deploy the BitcoinOS Grail bridge and improve cross-chain transactions without a centralized trust mechanism.
Merlin Chain founder Jeff Yin said this partnership will provide users with a "trustless, decentralized" bridge to "native Bitcoin assets".
This bridge is supported by ZK-proofs, directly written into the BTC blockchain, eliminating the need for centralized security measures like multisignature or multi-party computation.
Yin described this development as "just the beginning" towards a "more interoperable Bitcoin ecosystem".
You can view coin prices here.
Join Telegram: https://t.me/tapchibitcoinvn
Follow Twitter (X): https://twitter.com/tapchibtc_io
Follow Tiktok: https://www.tiktok.com/@tapchibitcoin
Viet Cuong
According to Cointelegraph
