Since its launch, “Internet Computer” has taken the cryptocurrency market by storm. This is an ambitious project, with the support of some major companies in the industry. It was developed and created by the DFINITY Foundation to provide people with more power through the Internet, to host unlimited data and calculations on the chain, and to easily build scalable Dapp, DeFi, websites, etc.
Now, DFINITY has taken another big step into the future.
On September 17, a proposal called ” Directly Integrate Internet Computers (DFINITY) with Bitcoin Network” was approved by the DFINITY community, and the proposal received a support rate of 96.55%.
The proposal aims to add smart contracts to Bitcoin by applying “chain key encryption technology”, and the application will directly integrate the Bitcoin network. Smart contracts on the Internet computer (Dfinity) will be able to hold, send and receive Bitcoin without the need for a private key.
Bitcoin is a decentralized cryptocurrency based on the open source P2P protocol. Since its release as open source software in 2009, its technology has been a revolutionary idea because it can be used as an alternative peer-to-peer payment system and allows its users to regain control by executing transactions without the need for a trusted third party.
Bitcoin transactions are verified by a network of nodes. A public distributed ledger called “blockchain” is shared among all users and records information about each transaction. Node owners, called miners, collect fees for each transaction in the form of Bitcoin.
Due to some technical shortcomings of the Bitcoin blockchain, it now plays the role of “digital gold”. The main technical defects have the following three reasons:
Bitcoin usually takes about 10 minutes to complete the transaction. The problem with most blockchain technology is that it is very slow. Ethereum was launched in 2015, using an updated form of proof of work to speed things up, but it is still far from the speed required for a large number of online user experiences.
Since its launch, Bitcoin’s scalability has been an issue within its community because it cannot scale well to be used as a global currency. The reason is that due to the size limitation of Bitcoin itself, there is a limit to how many transaction record blocks the network can process within a certain time frame. New blocks are generated approximately every 10 minutes, and their size is limited to 1 megabyte. Therefore, the Bitcoin network has never processed more than 8 transactions per second.
High transaction fees
Bitcoin and Ethereum fees are paid to miners to cover the computational cost of confirming secure transactions. The cost depends on the byte size of the transaction and supply and demand, because the capacity of these blockchains is limited.
The goals of the proposal are as follows:
1) Provide powerful smart contract functions for Bitcoin transactions;
2) Make Bitcoin transactions have fast processing and low transaction costs.
Providing smart contracts for Bitcoin will add tremendous value and will effectively improve the overall strength of the Bitcoin network as the world’s “digital gold” reserve and DFINITY as the safe and effective execution of smart contracts. In addition, Bitcoin can be used to pay for any type of service on Internet computers, which opens up endless application scenarios.
DFINITY’s smart contract can directly hold Bitcoin, and its balance is captured on the real Bitcoin network. These Bitcoin smart contracts can run Turing complete logic and decide when to conduct Bitcoin transactions with other entities (such as ordinary Bitcoin users). DFINITY’s smart contract can create Bitcoin transactions and relay them to the Bitcoin network. Direct integration not only means that DFINITY’s smart contract itself can accommodate Bitcoin, but also means that no intermediaries such as “bridge” and “package BTC ” are introduced in the design .
Dialogue with the founder of DFINITY Foundation
Newsbtc reporters interviewed Dominic Williams, founder and chief scientist of the DFINITY Foundation, and discussed about this proposal and its impact on the two blockchain networks.
Q: DFINITY has been deployed for about 4 months. How would you describe the current status of the project and the role played by the community?
Dom: Developers and entrepreneurs have realized its potential. Therefore, DFINITY is experiencing violent growth, measured by the number of running smart contracts, the number of developers being developed, and the number of active users of the dapp being built. It can be said that it is the fastest-growing blockchain. Take a closer look at these indicators. . In addition, the developers have proven that DFINITY can be used to build things that cannot be built on any other blockchain today. For example, one of the most popular dapps on DFINITY is “Open Chat.” Although it is still in the alpha stage, it already has tens of thousands of users. This runs entirely from the blockchain, which means that smart contracts are used to process chat messages, and smart contracts can also safely provide services for interactive web content that users interact directly with the browser—this is today only the DFINITY blockchain can Do it. Therefore, not only does Web 3.0 become a reality, but the application purpose of blockchain is also greatly expanded.
Q: DFINITY is a relatively new project in the field of cryptocurrency. Why do you think people are attracted to it, and what is unique about the network?
Dom: I think more and more people are beginning to realize that blockchain is the future of the Internet and has great potential. For this reason, many developers, including those who are early in their careers and trying to decide which technical field to dedicate their lives to, are attracted to blockchain. DFINITY is one of the oldest original encryption projects, but it is one of the last blockchains to be launched because a lot of R&D work involves rethinking the blockchain architecture from the ground up and developing a new cryptographic framework that powers it. But now DFINITY is available, it provides completely different functions from other blockchains.
These features mean that DFINITY can even be used to create a decentralized version of mass-market social media services that run entirely on the chain and can be mixed with next-generation DeFi services. If needed, it can even be used to build secure enterprise systems, enabling organizations to migrate from traditional IT to blockchain. It may truly reveal the mystery of the blockchain wizard.
Q: Can you tell us more about the process of allowing Bitcoin to run smart contracts through DFINITY? How is it different from the BTC synthetic version already running on Ethereum?
Dom: Today, the Bitcoin network carries a value of nearly one trillion U.S. dollars in the form of divisible Bitcoin, playing the role of “digital gold”. However, the Bitcoin network currently does not integrate the “smart contract” function that Ethereum launched six years later. Smart contract is a new type of unstoppable and tamper-proof function. It can ensure that it runs on the blockchain in exactly the way the code is written, and remains secure without firewall protection, and can process value in the form of tokens , Can even run autonomously without firewall protection, even without the person or organization controlling them. They allow blockchain to be used as a new type of universal platform and promote the DeFi (decentralized finance) revolution pioneered by Ethereum.
If Bitcoin obtains a smart contract, the huge financial value carried by Bitcoin has great practicability. The current practice is to transfer Bitcoin to a blockchain that supports smart contracts such as Ethereum through “wrapping”. Unfortunately, this is very dangerous. It involves sending bitcoins to an organization that runs a so-called “bridge”, which stores them, and then issues “packaged bitcoins” on the target blockchain, which can then be processed through smart contracts. The disadvantage of this method is that Bitcoin is passed to the “bridge” operator for custody, and the “bridge” operator must be trusted to redeem the packaged Bitcoin correctly when needed in the future. This runs counter to the blockchain mission that aims to eliminate the need for trust. Therefore, this method is very risky.
The DFINITY network provides a revolutionary “chain key cryptography.” This will enable the smart contract hosted by DFINITY to directly maintain, send and receive bitcoins, and will make these bitcoins actually reside on the real bitcoin network and can be moved immediately, thereby eliminating the “bridge” to danger And the need for “packaging”. This is possible because the DFINITY protocol can use “chain key encryption technology” to safely and seamlessly generate the private key ECDSA signature involved in the Bitcoin transaction representing the smart contract. At the same time, DFINITY nodes will directly communicate with Bitcoin network nodes to ensure the authenticity of transaction and balance information.
In fact, the proposal will merge the two networks.
Q: Once the smart contract function is implemented, what are the potential use cases for these DFINITY smart contracts using Bitcoin?
Dom: The possibilities are endless. DFINITY is scalable and can run unlimited smart contract calculations. Its smart contract is also the first smart contract that can directly provide network content to end users safely without an intermediary. It supports the new Internet identity anonymous blockchain authentication system, allowing users to use devices including fingerprints. Log in to dapps (decentralized applications) laptops with sensors, facial recognition systems, and hardware keys and wallets such as YubiKey and Ledger.
This means that in the future, your Bitcoin wallet may be safely sent to your web browser, and you will be able to use the fingerprint sensor quickly and securely before sending Bitcoin to any address you like through the user interface , Conveniently perform identity verification. More importantly, DFINITY allows to build social media services that run from the blockchain, which can then be mixed with DeFi.
In the future, your bitcoin wallet is likely to be a blockchain chat application. You may send bitcoins via messages or conduct NFT transactions after a conversation. For many people, this will begin to realize the vision of Bitcoin being used in Internet services originally described by Satoshi Nakamoto.
Q: Can the same process of making smart contracts on DFINITY compatible with Bitcoin be implemented in other networks? If so, which one might be the next cryptocurrency to be integrated, and why?
Dom: Thanks to the new “chain key encryption” framework that supports its protocol, the DFINITY blockchain can be integrated with Bitcoin. This enables it to create transactions on behalf of smart contracts so that they do not need to manage private keys themselves. Once Bitcoin is integrated, the same work will be used to directly integrate DFINITY with Ethereum. This integration will enable two-way calls between DFINITY and smart contracts on Ethereum, for example, enabling Ethereum’s DeFi to provide services for its website directly from the blockchain (instead of centralized cloud service companies such as Amazon Web Services) .
The implementation of a blockchain that supports “chain key encryption” requires years of research and development led by a strong team of professional cryptographers. For these reasons, it is unlikely that any other blockchain will achieve the same feat in the foreseeable future.
Q: How do you envision the future of the encryption industry, or an industry where multiple blockchains operate to benefit users? Do you think the interoperability of Bitcoin, DFINITY and other blockchains is important?
We believe in the trinity of blockchain consisting of Bitcoin, Ethereum and DFINITY. They all clearly satisfy different market segments and complement each other. Although both Ethereum and DFINITY support smart contracts, the capabilities provided by the DFINITY environment are quite different and broader. It can be said that Ethereum may become the DeFi settlement layer of the world and give DFINITY the vision of “world computer”. DFINITY has achieved this vision through years of research and development that cannot be easily replicated.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dialogue-with-the-founder-of-dfinity-foundation-integration-with-bitcoin-is-of-epoch-making-significance/
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