{"id":19443,"date":"2023-04-03T18:58:31","date_gmt":"2023-04-03T18:58:31","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/dfinity-foundation-launches-chain-key-bitcoin-a-native-internet-computer-btc-derivative-token-altcoins-bitcoin-news\/"},"modified":"2023-04-03T18:58:31","modified_gmt":"2023-04-03T18:58:31","slug":"dfinity-foundation-launches-chain-key-bitcoin-a-native-internet-computer-btc-derivative-token-altcoins-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/dfinity-foundation-launches-chain-key-bitcoin-a-native-internet-computer-btc-derivative-token-altcoins-bitcoin-news\/","title":{"rendered":"Dfinity Foundation Launches Chain-Key Bitcoin, a Native Internet Computer BTC Derivative Token \u2013 Altcoins Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

On April 3, 2023, the Dfinity Foundation, a development team behind the Internet Computer (ICP) network, announced the launch of a native ICP token called \u201cchain-key bitcoin\u201d or \u201cckBTC.\u201d The bitcoin derivative is backed 1:1 with the leading cryptocurrency asset. On Monday, Dfinity detailed that the technology \u201cbuilds on the protocol-level integration with the Bitcoin network.\u201d<\/strong><\/p>\n

Breaking Away from Custodians and Bridges: The Benefits of Chain-Key Bitcoin\u2019s Smart Contract-Based System<\/h2>\n

On Twitter, the Dfinity Foundation announced<\/a> the full release of chain-key bitcoin, also known as ckBTC. \u201cProposals 115468, 115470 & 115473 have been adopted with flying colors,\u201d the team explained. \u201cMany thanks to all the [ICP] people who voted manually to make this happen.\u201d According to a blog post<\/a>, ckBTC is backed 1:1 with bitcoin (BTC<\/a>), and the system operates with \u201ccentralized custodians, no bridges, and no traditional cloud providers.\u201d<\/p>\n

The ICP-based bitcoin derivative is considered a \u201csignificant breakthrough in blockchain interoperability,\u201d and the technology is integrated with Bitcoin at the protocol level, according to the Dfinity blog post. The ckBTC system uses vaults called canisters, which work with a smart contract instead of relying on a custodian or bridge. Essentially, to obtain ckBTC, a person needs to deposit BTC<\/a> in exchange for the ICP token, and withdrawals work the same way when ckBTC is redeemed for real bitcoin.<\/p>\n

\u201cAny canister can submit Bitcoin transactions to the Bitcoin network through ICP nodes, thanks to the direct protocol-level integration,\u201d Dfinity<\/a> explains. The company insists that the technology has significant potential and can add to new use cases.<\/p>\n

\u201c[Native cross-chain technology] has the potential to enable new cross-chain capabilities and unleash a plethora of 100% on-chain services, such as multi-token transactions or multi-token wallet systems, which would greatly streamline the crypto user experience,\u201d notes Dfinity\u2019s blog post.<\/p>\n

The announcement further details that several ICP-based decentralized applications (dapps), including Openchat, Iclighthouse, Plethora Game, and Distrikt App, already support ckBTC. While many blockchains have bitcoin derivative tokens, most rely on bridges or custodians. For example, the largest bitcoin derivative WBTC leverages the custodian Bitgo for minting and redemption purposes.<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Bitcoin<\/a>, BitGo<\/a>, Blockchain<\/a>, Blockchain network<\/a>, blockchain technology<\/a>, Bridges<\/a>, Chain-Key Bitcoin<\/a>, ckBTC<\/a>, cross-chain technology<\/a>, Crypto<\/a>, Cryptocurrency<\/a>, custodians<\/a>, decentralized applications<\/a>, decentralized finance<\/a>, DEX<\/a>, dfinity<\/a>, Dfinity Foundation<\/a>, Digital Assets<\/a>, Digital Currency<\/a>, Distrikt App<\/a>, Iclighthouse<\/a>, ICP<\/a>, ICP nodes<\/a>, ICP-based<\/a>, interoperability<\/a>, multi-token transactions<\/a>, multi-token wallet systems<\/a>, on-chain services<\/a>, Openchat<\/a>, Plethora Game<\/a>, protocol-level integration<\/a>, Smart Contracts<\/a>, tokenization<\/a>, Virtual Currency<\/a>, WBTC<\/a><\/div>\n<\/div>\n

What potential do you see in the native cross-chain technology behind ckBTC, and how do you think it will impact the future of blockchain interoperability? Share your thoughts about this subject in the comments section below.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

\n