Cardano and Bitcoin can now interact thanks to the new bridge based on the Grail protocol. This development could transform the world of decentralized finance applications.
Integration and Capabilities
On October 24, Cardano's development entity Emurgo, in partnership with BTCOS, announced the creation of a bridge allowing users to withdraw their bitcoins from the Cardano ecosystem, even if the network is compromised. According to Cardano founder Charles Hoskinson, the network is expected to soon host Bitcoin-secured DeFi applications, expanding developers' opportunities.
Technology and Security
The Grail bridge uses zero-knowledge proofs to minimize the data needed for Bitcoin transactions, while maintaining the security of the Bitcoin network. According to Edan Yago, BTCOS co-founder, this technology offers a higher security standard than the Bitcoin network itself, as it doesn't rely on centralized operators.
Alternatives and Advantages
While Grail isn't the only solution in DeFi for Bitcoin, it stands out for offering better security compared to alternatives like OP_CAT. Yago argues that introducing OP_CAT would add complexity to the Bitcoin network without significantly improving security.
The Cardano-Bitcoin bridge, based on the Grail protocol, could significantly impact the development of decentralized finance by opening up new opportunities for using Bitcoin in this field. Its high security standards make it an attractive option for users seeking alternatives to centralized solutions.
