Bitcoin and Beyond: Driving the Evolution of Cross-Chain Solutions
The Bitfinity team and community recently had a Twitter Space with the oooo Money team, discussing Bitcoin and Beyond: Driving the Evolution of Cross-Chain Solutions. You can follow the conversation below:
Nico: I’d like our guests to introduce themselves. Could you please tell more about yourself and your project?
Sam: It’s great to be here. Obviously we’ve been in touch for the most part of last year, and it’s been great to see what you are building and what you launched in Q4. Bitfinity mainnet went live some months ago, and I’m the head of BD — expanding the ecosystem through strategic partnerships.
Locke: Hi, how are you guys? My name is Ilac, and I’m the CTO of oooo Money, which is also known as 4O, is a cross-chain bridge. Welcome guys to use our product.
Nico: Thanks for both introductions, let’s dive into our first question of the day. Could you both please explain how your protocols contribute to the evolution of cross-chain interoperability?
Sam: When we talking cross-chain, obviously there is a level of interoperability that applies, we leverage our BitFusion SDK; this helps us to implement cross-chain interoperability between Bitcoin and EVM networks.
Bitfinity is a high performing blockchain that is expanding the markets of Bitcoin assets, such as Ordinals and Runes, based on its connection to Ethereum.
Locke: From a user perspective, we think interoperability means being able to move assets across chains in the most convenient way. This will help solve the problem of asset fragmentation. They won’t have to deal with cross-chain asset management and conversion.
We believe the end goal of interoperability is when users do not have to bother about the chains their assets are as everything will be solidified on the app layer.
In addition, achieving this will require collaboration between us and the communities.
Nico: Thanks to both of you, everyone now has a better understanding of the products. As we dive deeper into this topic, let’s consider the practical implication of both platforms. How do you solve the problem Bitcoiners face when managing different assets across multiple chains?
Locke: There is an interesting perception of Bitcoin dominating the entire market cap of Web3, and there are some elements of truth to this. But Bitcoin is turing-incomplete, which limits the liquidity of BTC — BTC holders couldn’t enjoy any other DeFi benefits apart from Bitcoin price appreciation.
So we now have solutions like Wrapped BTC, Layer 2s, and emerging markets. These solutions have to an extent released Bitcoin liquidity. However, they also introduced security vulnerabilities and asset fragmentation.
Specifically, oooo Money address these concerns. Security is paramount for any cross-chain application. We use multi-sig approach for liquidity management and implemented a network for private key management.
When a transaction requires signature, the network relays to 5 nodes within its decentralized network to sign the transaction. Meanwhile, the private keys are never exposed throughout — making it possible for attackers to breach the security.
This approach fundamentally eliminates the man-in-the-middle attack of centralized hacks.
In contrast, cross-chain communication in other protocols rely on centralized services or oracles. Both of which are weak to security vulnerabilities.
We started from the Bitcoin ecosystem, but have now expanded across multiple blockchains, including Ethereum. We also support centralized exchanges like Binance, which we treat as a special type of chain allowing users to transfer assets like Bitcoin to other chains like Bitfinity, for example.
Sam: I think, broadly speaking, the user experience needs to be prioritized, and that is one of our goals at Bitfinity. On top of that, you want to ensure that the security is intact, while trying to maintain a good cross-chain interoperability user experience.
Also check out Bitfinity's interview article with Lendfinity and how it has been building a robust lending protocol.
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Nico: What are your opinions on our products like wrapped assets and atomic swaps?
Sam: For example, with ckBTC—which is a derivative of everyone using ChainFusion—can be used on our bridge. But then you have others in the ecosystem.
Synthetic Bitcoin can be at the center of formed ecosystems, and that can herald collaboration. We’ve seen this with Omnity to have shared incentive.
Cardano and Kraken are also following the trend.
Ilac: Well, I believe wrapped assets have potential. Of course, since they require locking up assets, there is a level of security risks at play. But that can be mitigated through decentralized networks like I mentioned.
In terms of application, wrapped assets focus more on chain interoperability and DeFi integration.
Nico: Thanks for that! Sam, could you please elaborate on the progress of Bifinity’s mission in the Bitcoin ecosystem?
Sam: There are some updates that we haven’t necessarily published on the website… But one of it is the use of AI and autonomous agents to help with DeFi operations.
On the face of it, Bitcoin was the focus for us. On the side, to build and scale well with EVM as a layer 2. This is something we are positioned for now.
We are bringing liquidity from Bitcoin to EVM DeFi, and help users enjoy the autonomous agents in having better DeFi experience.
Nico: That’s interesting, and I can’t wait to see what’s coming from Bitfinity. Zooming out, Bitcoin broke the market and reached its ATH. What impact do you think this can have?
Ilac: This shows how optimistic we are about the bull market. One of the notable events in this bull run is the rise of Bitcoin, even when Ether didn’t really move. However, I think altseason will soon come up.
For builders like us, I think this is a good opportunity to respond to community demand by giving the right products.
Sam: The overall sentiment has definitely improved as Bitcoin went parabolic. But here is what makes this bull run different — now, the community is more informed.
Then several countries are debating adding Bitcoin reserves, even though there is a lot of political propaganda at play.
One thing is sure: this bull run is not entirely retail; at least, not yet!
Don't forget to check out Bitfinity Weekly Issue #140 here for the latest insights on Bitcoin developments, global crypto news, and more.
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