News Report Technology
January 11, 2024

Bitfinity Network Raises $7M for Bitcoin Sidechain Development on Internet Computer

Bitfinity Network Raises $7M for Bitcoin Sidechain Development on Internet Computer

Blockchain infrastructure company Bitfinity Network today announced that it raised over $7 million in funding from backers, including Polychain Capital and ParaFi Capital to support the ongoing development of an Ethereum Virtual Machine (EVM) compatibility layer for the Internet Computer.

This will enable solidity developers and existing EVM-compatible services to build Bitcoin-enabled decentralized apps (dApps).

According to the company, the aim is to establish off-chain infrastructure for Bitcoin and Ordinals, and the development includes the creation of a Bitcoin sidechain integrated into the Internet Computer blockchain.

The Internet Computer is a blockchain-based computing platform designed to extend the functionality of the internet and provide a secure and scalable environment for hosting decentralized applications (dApps) and smart contracts.

“This backing reaffirms our mission to bring greater utility to developers within the Solidity, Bitcoin, and Internet Computer communities. The upcoming launch of the Bitfinity EVM will enable the deployment of EVM dApps with speeds 100 times faster than Ethereum and at a fraction of the cost. Bitfinity’s EVM aligns with the Bitcoin mission by effectively functioning as a Bitcoin sidechain, with the addition of Taproot assets on the horizon,” said Max Chamberlin, founder of Bitfinity.

Bitfinity distinguishes itself with its use of the Internet Computer’s threshold signature scheme, known as Chain-Key. This unique approach ensures secure on-chain holding and transfer of Bitcoin and Ordinal assets. The Chain-Key mechanism enhances security and transparency, presenting a robust alternative to conventional bridge mechanisms.

Boosting the Interoperability of Bitcoin and Ethereum

With this integration, Bitfinity becomes the first EVM to integrate with the Bitcoin network without relying on traditional intermediary bridges. The development has led to interoperability between the Bitcoin and Ethereum ecosystems, unlocking new possibilities for decentralized finance applications.

Bitfinity’s integration with the Internet Computer blockchain addresses historical challenges, making Bitcoin accessible in the DeFi space for the first time. This trust-minimized utilization eliminates the need for hardware-based solutions, marking a significant advancement in Bitcoin’s integration into decentralized finance.

Moreover, Bitfinity EVM introduces several features including:

  • Solidity smart contracts gain access to ckBTC, backed 1:1 by Bitcoin with proof of Bitcoin reserves on-chain and decentralized through Chain-Key.
  • A fully decentralized stack with the backend in Solidity and the frontend hosted entirely on-chain on the Internet Computer.
  • Offers speeds 100 times faster than the Ethereum Mainnet and significantly lower gas fees.
  • The security of the EVM has been audited by Quantstamp.

“Bitfinity doesn’t change the fact that Ordinals are directly inscribed onto the Bitcoin blockchain; and as such, doesn’t change the core ethos of on-chain digital assets. In fact, it just makes it cheaper to use them, and we believe that many users will prefer a low-cost side-chain or L2 to run their transactions,” a Bitfinity spokesperson told Metaverse Post.

Bitfinity’s roadmap includes further integration plans, such as incorporating Taproot assets, including Ordinals and BRC-20 tokens. The protocol aims to create on-chain indexers monitoring Taproot asset transactions recorded in segWit data fields.

Disclaimer

In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.

About The Author

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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Kumar Gandharv
Kumar Gandharv

Kumar is an experienced Tech Journalist with a specialization in the dynamic intersections of AI/ML, marketing technology, and emerging fields such as crypto, blockchain, and NFTs. With over 3 years of experience in the industry, Kumar has established a proven track record in crafting compelling narratives, conducting insightful interviews, and delivering comprehensive insights. Kumar's expertise lies in producing high-impact content, including articles, reports, and research publications for prominent industry platforms. With a unique skill set that combines technical knowledge and storytelling, Kumar excels at communicating complex technological concepts to diverse audiences in a clear and engaging manner.

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