Internet Computer Protocol (ICP) plans to use advanced threshold cryptography to unlock decentralized finance and smart contract functionality on its base layer. Bitcoin
In an interview with Cointelegraph At Paris Blockchain Week, Dfinity Senior Research Scientist Aisling Connolly concluded: Integrating threshold-Schnorr signatures of ICP will allow the protocol’s smart contracts to receive addresses and allow direct transactions on the Bitcoin Blockchain.
Schnorr signatures are a type of digital signature named after mathematician Claus Schnorr. They work like a secret handshake between two parties. To prove that someone signed something without revealing their secret key.
This will allow ICP smart contracts to sign Schnorr signatures to etch Bitcoin Runes, inscribe Ordinals in a decentralized manner, send, receive and bridge BRC-20 tokens directly on Bitcoin’s base layer, signing transactions. taproot and re-inscribe Ordinals
ICP predicts that use Threshold-Schnorr The full implementation will launch in mid-2024, with ICP integrating the core functionality of Threshold-Schnorr-BIP340 This allows smart contracts to obtain addresses and natively authorize Bitcoin transactions.
“Schnorr also has additional functionality such as batching transactions. It also allows for new use cases being developed on Bitcoin, as you saw people writing Ordinals last year. This allows them to do this without any customization and coming from another chain,” explains Connolly.
The researchers added that Basically, the ability to inscribe Ordinals after a Bitcoin halving requires Schnorr signatures. Connolly said Schnorr signatures are similar to the ECDSA signatures that Bitcoin uses to control ownership. But the former is “easier, faster and safer.”
Connolly also highlighted a number of use cases being explored and created by ecosystem developers:
“One use case is an ICP that acts as “As an orchestration layer, let’s say you have a DApp on Ethereum and you want to leverage Bitcoin, you have an ICP smart contract that works with it,” Connolly explained.
The researchers believe the Bitcoin community is generally open to exploring and considering the use of tools such as decentralized exchanges on ICP that support noncustodial wallets, with Connolly saying this would also enable support for DeFi capabilities such as Bitcoin staking. without giving up control of the user’s private keys.
ICP currently has more than 300 developers creating Bitcoin-enabled DApps in DeFi, NFT, gaming, and social media. Launch of Bitcoin integration in 2022– And using chain key cryptography to eliminate the need for a bridge for cross-chain functionality, ICP smart contracts can store, send, and receive Bitcoin.
refer : cointelegraph.com
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