Dfinity Foundation Introduces Chain-Key Bitcoin, an Internet Computer-based BTC Derivative Token
The Dfinity Foundation has unveiled a new native token, called “chain-key bitcoin” or “ckBTC,” which is built on the Internet Computer (ICP) network. The technology behind ckBTC operates with a 1:1 backing from bitcoin, with no centralized custodians or bridges required. The ckBTC system uses canisters, which work with smart contracts rather than relying on custodians or bridges. This makes it easier for people to obtain ckBTC by depositing BTC in exchange for the ICP token.
Dfinity’s blog post explains that the technology is a significant breakthrough in blockchain interoperability, as it is integrated with Bitcoin at the protocol level. With the protocol-level integration, any canister can submit Bitcoin transactions to the Bitcoin network through ICP nodes. This has significant potential to unlock new use cases for cross-chain capabilities and on-chain services that can greatly streamline the crypto user experience.
Several ICP-based decentralized applications, including Openchat, Iclighthouse, Plethora Game, and Distrikt App, already support ckBTC. Unlike many other bitcoin derivative tokens, ckBTC does not rely on bridges or custodians. Instead, it offers a smart contract-based system that enables users to break away from these traditional methods.
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