Bitcoin is recognized as a significant digital store of value; however, its utility in decentralized finance (DeFi) remains a concern due to high custody risks and reliance on custodial infrastructure. With a current total value locked (TVL) of $1.9 billion in DeFi, compared to Ethereum’s $47.5 billion, Bitcoin’s potential in this space is just beginning to be explored. Projects like Portal-to-Bitcoin aim to bridge the gap between disparate blockchain environments through innovative solutions like atomic swaps using Multi-Party Hash Time-Locked Contracts (MP-HTLCs). This allows users to execute cross-chain swaps without the need for wrapped tokens or custodial bridges. An Automated Dynamic Market Maker (ADMM) further enhances this system by efficiently managing liquidity and minimizing trading risks. Additionally, a validator-based system secured by a Notary Chain ensures the integrity of key management while reducing trust issues. By addressing critical challenges in cross-chain integration, Portal-to-Bitcoin could significantly leverage Bitcoin’s value in the DeFi landscape, marking a pivotal evolution for Bitcoin in the decentralized finance realm.

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