- Dfinity Foundation’s Internet Computer issued liquid Bitcoin which is expected to speed up transactions and enable new use cases.
To solve the transaction time issue of the Bitcoin network, Internet Computer issued ckBTC, a liquid equivalent of BTC. The Dfinity Foundation is a noticeable contributor to the development of the Internet Computer Network. They issued a liquid and cost-effective twin token, pegged 1:1 with Bitcoin.
New Features and their Affect on Bitcoin
Newly issued ckBTC will bring the layer-2 capabilities to Bitcoin, making transactions quicker and cheaper without compromising security. Layer-2 is a secondary protocol or framework built upon an existing blockchain system.
When integrated directly with the Bitcoin network, ckBTC can now be used in various Decentralized Finance Applications (dApps) working on a supported list of networks. Additionally, it would not require any bridging mechanism, which are well-known attack points in the crypto ecosystem.
What Does the Creator Think About his Creation?
While speaking to the media, Dominic Williams, Dfinity founder, said that ckBTC could be synonymous with low transaction fees, greater speed, and especially without bridges.
The launch is a landmark in the journey of Bitcoin, and the Dfitnity Foundation loves the emergence of new projects built on Internet Computers. Implementing ckBTC is one of them, and shall explore new and exciting use cases for the world’s favorite cryptocurrency.
How Does This Work?
When a protocol is integrated with the Bitcoin network, it opens up numerous opportunities but is also exposed to slow transaction times and higher fees. To solve this issue, the fee set on Liquid Bitcoin (ckBTC) by Internet Computer is just 0.0000001 ckBBTC, just a few cents, which is considerably lower that the actual fees at the Bitcoin network.
Almost all wrapped tokens are controlled by a centralized entity, but ckBTC uses canisters and smart contracts for asset transfers. These do not need any intermediaries or vulnerable cross-chain bridges. Users will deposit real BTC at the deposit address and receive the same amount of ckBTC. Users can also return ckBTC in exchange for real Bitcoins at a specific address.
Many more use cases can be considered and carried on and are supposed to boost the targeted mass adoption of Bitcoin.
Where Does Bitcoin Stand Now?
When writing, Bitcoin was changing hands at $28,022.82 with a slight dent of 0.47%. At the same time, Ethereum was trading at 15.63 ETH, sliding by 0.02%. The market capitalization dropped by 0.46% to $541 billion. The volume went up by 66.12% to $17.2 billion.
Bitcoin has risen considerably since the advent of 2023, but its jump is more noticeable in the second quarter, supported by EMAs and a short-term upward-moving trend line. However, the MACD is not giving clear signals, and the price came down slightly.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/04/03/internet-computer-brings-ckbtc-liquid-bitcoin-boosting-speed/