Bitcoin users will soon gain access to smart contract functionality without the need for bridging or wrapping their BTC. A new integration between dWallet Network and Avail promises to revolutionize how Bitcoin is utilized within smart contracts.
Cross-chain solutions like bridges or federated MPC often require users to sacrifice ownership of their BTC. This poses significant security risks, with potential exploits leading to substantial asset losses.
The Bitcoin community has been critical of existing layer-2 protocols, which often involve bridging or wrapping BTC. These solutions have been accused of “affinity scamming,” misleading users into exchanging their BTC for other tokens.
The partnership with Avail allows dWallets to interact with native BTC without relying on cross-chain solutions. dWallets enable programmable native BTC while preserving user ownership, a core principle of Web3 and Bitcoin.
The integration leverages multi-party computation (MPC), enabling multiple parties to compute functions without revealing their inputs. This ensures that users maintain control over their assets while engaging in smart contract transactions.
dWallets operating on the decentralized MPC infrastructure can generate Bitcoin transactions directly. Smart contracts on Avail rollups approve these transactions, ensuring that logic is enforced without compromising user ownership.
The collaboration aims to broaden Bitcoin’s capabilities by allowing native rollups to run smart contracts without the need for bridging or wrapping tokens. This opens up possibilities for DeFi protocols, staking, DAOs, trading, and gaming to utilize native BTC.
Enabling BTC to be used programmatically on other blockchains via a trust-minimized approach holds the potential to drive Bitcoin adoption. Avail co-founder Anurag Arjun highlights Bitcoin’s security as a base layer, making it an ideal asset for decentralized applications (DApps).
dWallet technology empowers Solidity smart contracts on Avail rollups to create Bitcoin signatures while ensuring logic enforcement. Finalizing signatures requires approval from the Avail rollup smart contract, preventing collusion and asset theft.
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