Bitfinity Network, a next-generation EVM Layer-2 solution for Bitcoin and on-chain Bitcoin assets, has announced two major technological advancements: the integration of Runes via the Omnity Bridge and a groundbreaking connection to the Internet Computer Protocol (ICP) ecosystem. This development marks a significant step toward expanding decentralized finance (DeFi) capabilities across multiple blockchain networks using Bitcoin-based assets.
Unlike many traditional Bitcoin Layer 2 solutions that rely on merged mining, Bitfinity operates on an EVM-compatible platform. This allows Bitcoin assets to function seamlessly within Ethereum-based environments, offering developers and users a familiar and flexible framework for building and interacting with decentralized applications.
Core Innovations: Decentralized Bridging and EVM Compatibility
At the heart of Bitfinity’s architecture is a threshold signature system derived from Internet Computer’s Chain-Key Technology. This approach enables fully decentralized asset bridging without relying on centralized custodians or intermediaries. By eliminating middlemen, Bitfinity enhances security and reduces counterparty risk commonly associated with wrapped assets and cross-chain protocols.
The platform is designed to support high-throughput applications with an average block time of just two seconds and the capacity to process over 1,000 transactions per second. This performance is critical for scaling DeFi applications and supporting a growing user base.
Unlocking New Possibilities with Runes Integration
Runes, a token standard introduced by Casey Rodarmor, the creator of Bitcoin Ordinals, offers a more efficient and scalable alternative to the BRC-20 standard. By utilizing Taproot addresses, Runes enables lightweight and cost-effective token transfers on the Bitcoin blockchain.
With the integration of Runes via the Omnity Bridge, a variety of Runes-based tokens can now be ported onto the Bitfinity Network. This includes popular assets like DOGE (Runes), which currently holds a market capitalization in the hundreds of millions. The move unlocks new DeFi use cases such as lending, trading, and yield farming for Bitcoin-native tokens, thereby increasing liquidity and utility.
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Expanding Interoperability with Internet Computer and Cosmos
In a parallel development, Bitfinity has collaborated with Omnity Bridge to enable the use of Chain-key Bitcoin (ckBTC) within the Cosmos ecosystem. ckBTC is a fully decentralized Bitcoin representation on the Internet Computer blockchain, and its integration with Osmosis—a major decentralized exchange in Cosmos—marks the first time a non-custodial Bitcoin token is available in this ecosystem.
This is particularly significant given Cosmos’s interconnected architecture and substantial market presence. The integration offers a secure and decentralized alternative to wrapped Bitcoin (WBTC), which has faced scrutiny over its centralized custodial model.
The growing interest from institutional investors, partly driven by the potential approval of Bitcoin ETFs, is accelerating demand for Bitcoin exposure across multiple chains. Bitfinity’s infrastructure enables this cross-chain mobility without sacrificing decentralization.
Engaging the Community with Bitgems
Beyond technical integrations, Bitfinity is also focused on user engagement through Bitgems—a gamified platform where users earn digital gems through social interactions and dApp usage. This initiative aims to make the Bitcoin ecosystem more accessible and enjoyable, particularly for newcomers.
Bitgems is tightly integrated with Bitfinity’s cross-chain bridge, allowing users to move assets seamlessly between ecosystems while participating in community-driven activities.
Frequently Asked Questions
What is Bitfinity Network?
Bitfinity is an Ethereum Virtual Machine (EVM)-compatible Bitcoin Layer 2 blockchain. It enables the use of Bitcoin and Bitcoin-based assets in smart contracts and decentralized applications by providing high throughput and low latency.
How does Runes integration benefit DeFi users?
The integration allows Runes tokens to be used in DeFi protocols on Bitfinity, such as decentralized exchanges and lending platforms. This enhances liquidity and creates new financial opportunities for holders of Bitcoin-native tokens.
What is ckBTC?
ckBTC is a decentralized representation of Bitcoin on the Internet Computer blockchain. It is fully collateralized and operates without centralized custodians, making it a trustless alternative to wrapped Bitcoin.
How does Bitfinity ensure bridge security?
Bitfinity uses a threshold signature scheme based on Internet Computer’s Chain-Key Technology. This allows decentralized control of bridged assets and eliminates the need for third-party intermediaries.
Can I use Bitcoin DeFi applications on Bitfinity?
Yes. Bitfinity’s EVM compatibility means users can interact with popular DeFi dApps using Bitcoin and Runes tokens, just as they would with Ethereum-based assets.
What makes Bitfinity different from other Bitcoin L2 solutions?
Unlike many Bitcoin Layer 2 platforms, Bitfinity uses an EVM-compatible environment and emphasizes decentralized bridging. This offers greater transparency, better usability, and reduced centralization risk.
The Future of Bitcoin-Centric DeFi
Bitfinity’s latest integrations signal a broader trend toward Bitcoin interoperability and utility beyond simple transactions. As the DeFi ecosystem continues to embrace Bitcoin, solutions that prioritize security, scalability, and user experience are likely to lead the next wave of adoption.
With its mainnet launch on the horizon and continued development of cross-chain infrastructure, Bitfinity is positioning itself as a key player in the evolution of Bitcoin-based decentralized finance.