Miguel Lopez On April 3, 2023, the Dfinity Foundation revealed a new token based on Bitcoin called “chain-key bitcoin,” or “ckBTC.” This means that 1 ckBTC is equal to 1 Bitcoin. They said this kind of technology links with the Bitcoin network and builds on it.
Unlocking the Possibilities of ckBTC with Cross-Chain Technology
The Dfinity Foundation sent out a message on Twitter that they just made a big release – it’s called ‘chain-key bitcoin’, or ckBTC. This means many people voted and said yes to this which was pretty successful. On their website, they explain that the ckBTC is exactly equal to one regular bitcoin (BTC) but it works differently – the custodians are in charge and there are no bridges or cloud providers needed.
The new ICP-based bitcoin derivatives are special because they work within Bitcoin’s protocol. The system is called ckBTC and it doesn’t need a custodian or bridge to be used. To get ckBTC, you have to deposit some real bitcoin into the vault (canister) in exchange for an ICP token. To withdraw your ckBTC, you just have to convert them back into real bitcoins.
Dfinity provides a way for people to send Bitcoin transactions by connecting to ICP nodes. They believe this technology can open up many new possibilities.
Native cross-chain technology could be used to do amazing things with cryptocurrencies, such as making transactions or wallets with multiple digital coins. Dfinity’s blog post says that this would make it much easier for people to use cryptos.
Recently, several apps including Openchat, Iclighthouse, Plethora Game, and Distrikt App have announced their support for ckBTC. This is a type of virtual coin that works like Bitcoin. Unlike some other similar types of coins, you don’t need to use bridges or custodians (people who look after your virtual money) to manage it. For example, WBTC – the biggest Bitcoin derivative – uses Bitgo as its custodian.
Think about it: what cool things can be done with ckBTC’s cross-chain technology? How do you think that tech will shape the future of blockchain connecting to other blockchains? Let us know in the comments section below.
