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Smart Contracts, DeFi and Yield Farming on Bitcoin?

With the integration of Internet Computers (ICP) into the Bitcoin mainnet, features like Smart Contracts, DeFi, and Yield Farming are coming.

By Finst News
• 3 min read
Smart Contracts, DeFi and Yield Farming on Bitcoin?

With the integration of Internet Computers (ICP) into the Bitcoin mainnet, features like Smart Contracts, DeFi, and Yield Farming are coming.

The DFINITY Foundation, which contributes to the development of Internet Computer (ICP), has announced its integration into the Bitcoin mainnet. In the accompanying press release it states: "Internet Computer now functions as a Layer-2 for Bitcoin. Smart contracts can be stored, sent, and received without using a blockchain bridge." This is aimed at providing a "trusted foundation for various DeFi and Web3 applications trying to encode Bitcoin," the company says.

Integration as a game changer for the industry

Manu Drijvers, Chief Technology Officer at the DFINITY Foundation, sees the integration as a "real game changer for the industry." Per the report, the largest cryptocurrency by market cap could be used with DeFi activities like yield farming or lending. While bridged and wrapped Bitcoin would become unnecessary, DFINITY is working on the so-called chain-key Bitcoin (ckBTC), which serves as a "local ledger." With the integration, the ICP developer community is meeting a long-standing strong demand, she adds. The idea of linking Bitcoin to other crypto applications isn’t new. Lightning Labs has already made stablecoins available on Bitcoin with the Taro version.

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