ICP Integrates Threshold-Schnorr Signatures, Empowering Builders To Enhance Bitcoin Economy
In Brief
Internet Computer Protocol integrated threshold-Schnorr signatures and on-chain Bitcoin block headers as part of its Deuterium milestone.
Decentralized blockchain network, Internet Computer Protocol (ICP), announced the integration of threshold-Schnorr signatures and on-chain Bitcoin block headers as part of its Deuterium milestone. These advancements will allow developers to create new Bitcoin-native applications that were previously not feasible.
“Most Bitcoin meta protocols, like Ordinals and BRC-20, use Taproot transactions that rely on Schnorr signatures,” said Lomesh Dutta, VP of Growth at the DFINITY Foundation, in a written statement. “With tSchnorr, ICP smart contracts can now natively sign Bitcoin transactions, enabling developers to create a wide range of use cases like etching runes, DeFi lending markets backed by Ordinals, or infrastructure such as decentralized indexers. We’re already seeing a major surge in developers adopting tSchnorr, and we believe this will significantly accelerate development in the Bitcoin ecosystem,” he added.
ICP smart contracts now have the capability to directly sign Schnorr signatures, allowing for activities such as etching Runes, inscribing Ordinals in a fully decentralized way, sending and receiving BRC-20 tokens on Bitcoin Layer 1, and signing Taproot transactions, among other functions. Moreover, the Deuterium milestone enhances ICP’s integration with Bitcoin by providing access to the complete content of a Bitcoin block, a feature that is increasingly important as new meta protocols write data to the block header.
ICP Ecosystem To Gain New Capabilities With Integration Of New Features
With the integration complete, projects within the ICP ecosystem are set to benefit from the implementation of threshold-Schnorr signatures and on-chain Bitcoin block headers.
In particular, threshold-Schnorr will play a crucial role in powering the Omnity Network, enabling it to manage Bitcoin Taproot assets and connect with blockchains such as Solana and Osmosis, which utilize the ed25519 signature scheme, by the end of August 2024. The network will also utilize Bitcoin Canister block header data, introduced with the Deuterium milestone, to independently verify Bitcoin blocks without relying on public RPC services, ensuring complete trustlessness.
Meanwhile, Bioniq, which currently has over 50,000 active users, plans to use threshold-Schnorr signatures in several upcoming projects to enable trustless cross-chain asset transfers. As the first Layer 2 network for Bitcoin Ordinals, Bioniq will enhance the efficiency of trading, minting, and showcasing Bitcoin-based digital art and collectibles, offering minimal transaction fees and fast finality.
Furthermore, with the introduction of threshold-Schnorr signatures, Helix users will be able to trade ICP tokens as well as tokens from other ecosystems seamlessly, without the need for bridging or wrapping assets. This integration will allow Helix to connect with the broader blockchain ecosystem, providing access to 10 million active users on Solana and tapping into the network’s $56 billion monthly trading volume.
The Deuterium milestone also positions Helix to contribute to the expanding Bitcoin Layer 2 ecosystem, which includes Runes and Ordinals, now valued at over $1 billion, with a daily trading volume of $2.25 million. Additionally, it opens opportunities for protocol integrations with platforms like Stacks and Rootstock.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
