Cardano-Bitcoin bridge may be first step to true Bitcoin DeFi
The upcoming Cardano-Bitcoin bridge, based on the Grail protocol, aims to enable decentralized finance (DeFi) applications secured by Bitcoin. Emurgo, the development team behind Cardano, is collaborating with BTCOS, the Grail developer, to create this bridge. Cardano founder Charles Hoskinson mentioned the potential for hybrid Cardano/Bitcoin applications, while acknowledging the need for developers to learn Cardano's Aiken programming language for new app development. Documentations reveal that the Grail system allows Bitcoin users to withdraw from Cardano without relying on its validators, addressing security concerns critics have raised. However, complete withdrawal funds could still be blocked if all verifiers collude maliciously. The Grail project utilizes zero-knowledge proofs to simplify transactions, improving on the earlier BitVM concept. Despite the potential benefits, developing these hybrid apps is anticipated to be resource-intensive. As discussions continue regarding the bridge's implementation, some Bitcoin users remain skeptical about its effectiveness and security.
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