Bitfinity Network Launches Cross-Chain Integration of Bitcoin Runes to Expand DeFi

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, Business2Community, and…

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Last updated:

November 7, 2024 13:52 EST

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Bitfinity Network, an EVM Layer-2 protocol specializing in Bitcoin assets, recently introduced a dual bridge integration, connecting Bitcoin Runes tokens with Ethereum-based DeFi applications and the Internet Computer Protocol (ICP) ecosystem.

Max Chamberlin, Co-Founder of Bitfinity Network, shared with Cryptonews the motivations and technical aspects behind Bitfinity’s Runes integration and cross-chain bridging efforts, shedding light on the network’s approach to Bitcoin-backed DeFi.

Why Choose Runes? A New Standard for Bitcoin-Backed Tokens

The decision to prioritize Runes, a Bitcoin token protocol created by Casey Rodarmor, demonstrates Bitfinity’s commitment to efficiency and scalability in Bitcoin transactions.

Chamberlin explained that although several Bitcoin token standards are available, Runes provides a more streamlined and cost-effective solution, standing out particularly in comparison to the BRC-20 standard.

“Runes allow for simple transfers by moving a Bitcoin UTXO without the need for new inscriptions or multiple transactions, unlike BRC-20,” Chamberlin explained. “This design makes Runes transfers both cheaper and more streamlined, making them ideal for a fungible token solution.”

Although BRC-20 has gained traction as one of the first standards in the Bitcoin token space, Chamberlin believes Runes is technically superior due to its efficiency.

Bitfinity’s support for Runes integration opens up diverse DeFi applications, bringing fungible tokens to Ethereum-compatible platforms and tapping into broader liquidity for Bitcoin-backed assets.

Bitfinity Network: Ensuring Stability for High-Volume Trading

To handle the market volatility of meme tokens such as DOGE (Runes), which often experience trading surges, Bitfinity’s architecture has been optimized for stability and high capacity.

Chamberlin noted that Bitfinity’s network infrastructure is built to handle both speed and capacity demands, boasting performance metrics competitive with high-throughput chains like Solana.

“Our infrastructure can handle hundreds of transactions per second (TPS), with most transactions confirmed within seconds,” Chamberlin stated. “This places us among the most efficient platforms, making Bitfinity highly competitive and significantly faster than most other EVM Layer 2 solutions.”

This robust infrastructure allows Bitfinity to support high trading volumes for meme tokens without compromising transaction reliability or speed.

Enhanced Bridge Security with Chain-Key Technology

Security is paramount for Bitfinity, especially in light of recent vulnerabilities in cross-chain bridges.

Bitfinity’s decision to adopt Internet Computer’s Chain-Key Technology marks a departure from custodial models like Wrapped Bitcoin (WBTC), opting for a fully decentralized and secure bridge infrastructure.

“Since key exfiltration is the leading cause of bridge attacks, Chain-Key addresses this by splitting signing authority across 28+ independent signers,” Chamberlin noted. “This surpasses the typical 3-5 signers used in other Bitcoin-native multi-sig protocols, creating a high threshold of security that makes private key infiltration very difficult.”

Chain-Key ensures no single point of failure in the bridge architecture by leveraging a threshold signature scheme.

This cryptographic approach, validated in asynchronous settings, prevents vulnerabilities common in custodial bridges and traditional multi-sig models.

Unlike WBTC’s custodial model, Chain-Key is fully decentralized, reducing centralized attack risks and enhancing security for cross-chain transactions.

Creating New DeFi Opportunities and Expanding Ecosystem Connectivity

With Bitcoin’s $1.2 trillion market cap attracting growing interest from DeFi developers and institutional investors, Bitfinity’s dual bridge integration arrives at a pivotal time for the blockchain ecosystem.

As institutional interest grows, particularly with potential Bitcoin ETF approvals, a new wave of users may begin exploring decentralized, cross-chain Bitcoin opportunities.

Bitfinity’s integration with Internet Computer Protocol (ICP) through Omnity Bridge extends Bitcoin’s reach by enabling Chain-key Bitcoin (ckBTC) to connect with ecosystems like Cosmos via the Osmosis DEX.

Chamberlin highlighted that the connection with Cosmos, a multi-chain ecosystem valued at $1.6 billion, creates unprecedented liquidity avenues, particularly for investors seeking a non-custodial, decentralized alternative to Wrapped Bitcoin.