2024

Grail

Satoshi Nakamoto

DeFi

<h4><strong>The <a href="https://www.altcoinbuzz.io/cryptocurrency-news/cardano-joins-bitcoin-ecosystem-via-bitcoinos-grail-bridge/" target="_blank" rel="noopener">bridge</a>, built using the Grail protocol, aims to allow Bitcoin users to withdraw their coins from Cardano. Even if Cardano’s network is compromised.</strong></h4> 
<p>In a partnership with Grail developer <a href="https://x.com/BTC_OS" target="_blank" rel="noopener">BTCOS</a>, Emurgo, the team behind Cardano, announced the bridge’s development on October 24th.</p> 
<h5><strong>Cardano’s Bitcoin Bridge May Launch Secure Defi Apps</strong></h5> 
<p>Cardano founder Charles Hoskinson later clarified that the network will eventually host Bitcoin-secured DeFi applications. This would allow developers to create hybrid apps using both Cardano and Bitcoin, with transaction fees paid in Bitcoin.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">CARDANO COMES HOME TO BITCOIN IN GROUNDBREAKING BOS GRAIL BRIDGE INTEGRATION</p> 
 <p>Yes, you read that right!</p> 
 <p>Cardano, the 11th largest blockchain by market cap, is integrating the BitcoinOS Grail Bridge to unleash decentralized programmability and scalability on Bitcoin!<a href="https://twitter.com/hashtag/UTXBros?src=hash&amp;ref_src=twsrc%5Etfw">#UTXBros</a><img src="https://s.w.org/images/core/emoji/15.0.3/72x72/270a.png" alt="✊" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/DStCakeEEq">pic.twitter.com/DStCakeEEq</a></p> 
 <p>— BitcoinOS (@BTC_OS) <a href="https://twitter.com/BTC_OS/status/1849437727877415416?ref_src=twsrc%5Etfw">October 24, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>Some Bitcoin users were skeptical, questioning whether these new DeFi apps could truly be secured by Bitcoin. They pointed out that past systems, called “Bitcoin layer 2s,” didn’t let users withdraw Bitcoin without the network’s operator’s permission. But <a href="https://bitvm.org/bitvm.pdf" target="_blank" rel="noopener">Grail’s design</a> shows it can allow Bitcoin withdrawals from Cardano without needing approval from Cardano’s validators.</p> 
<h5><strong>More About the BTC-ADA Bridge</strong></h5> 
<p>Grail uses a system of <a href="https://chain.link/education/zero-knowledge-proof-zkp" target="_blank" rel="noopener">zero-knowledge (ZK) proofs</a> to shrink the data needed for Bitcoin transactions, allowing users to trust the Bitcoin network’s security. The bridge promises stronger security than current Bitcoin-pegging systems, allowing users to withdraw their Bitcoin from Cardano even if Cardano’s nodes were taken over by a malicious actor. However, if 100% of the network’s validators were to collude maliciously, withdrawals could be blocked.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">EMURGO, the founding entity of Cardano, partnered with BOS to enhance liquidity via the Grail Bridge, enabling trustless bridging of BTC and other Bitcoin assets. <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f680.png" alt="🚀" class="wp-smiley" style="height: 1em; max-height: 1em;"></p> 
 <p>Grail Bridge uses zero-knowledge cryptography to let Bitcoin users move their assets securely.</p> 
 <p>— BitcoinOS (@BTC_OS) <a href="https://twitter.com/BTC_OS/status/1849437731958444338?ref_src=twsrc%5Etfw">October 24, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p><a href="https://x.com/EdanYago" target="_blank" rel="noopener">Edan Yago</a>, co-founder of BTCOS, explained that the bridge has a higher security standard than Bitcoin itself. Unlike Bitcoin, which relies on the honesty of the majority of miners, <a href="https://cdn.prod.website-files.com/661e3b1622f7c56970b07a4c/662a7a89ce097389c876db57_BitSNARK__Grail.pdf" target="_blank" rel="noopener">Grail’s security</a> assumes that no one controls all the nodes. In Yago’s view, this makes Grail a safer option for Bitcoin holders who are wary of trusting centralized bridging services.</p> 
<p>Yago believes that Grail offers the safest solution for making Bitcoin useful in DeFi apps, which could unlock trillions of dollars tied up in Bitcoin. He emphasized that a bridge like Grail, secured by zero-knowledge cryptography and a network of Bitcoin miners, would make Bitcoin more accessible for DeFi. This is without the need for risky centralized entities.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">1/ NEW WHITEPAPER: BitSNARK &amp; Grail—Bitcoin Rails for Unlimited Smart Contracts and Scalability. This is a solution to Bitcoin’s trilemma of scale, computational expressivity, and decentralization. <a href="https://t.co/As6kJIQe2t">https://t.co/As6kJIQe2t</a></p> 
 <p>— Yago (@EdanYago) <a href="https://twitter.com/EdanYago/status/1783531341893497075?ref_src=twsrc%5Etfw">April 25, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h5><strong>Other Alternative</strong></h5> 
<p>While Grail isn’t the only solution trying to secure Bitcoin-based DeFi, it stands out by offering better security than alternatives like OP_CAT. Here is a good X thread about it:</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Satoshi Nakamoto created OP_CAT in 2009 when creating Bitcoin.</p> 
 <p>He then disabled it in 2010.<br> Now, Tapscript enables it again.</p> 
 <p>Only a small circle of people know about its capabilities yet…</p> 
 <p>The potential is insane though… <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://t.co/LnlaPmMG5u">pic.twitter.com/LnlaPmMG5u</a></p> 
 <p>— peddy (@peddy2612) <a href="https://twitter.com/peddy2612/status/1824018947198361962?ref_src=twsrc%5Etfw">August 15, 2024</a></p>
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<p>Yago argues that implementing OP_CAT could add complexity to the Bitcoin network and would not significantly improve the security of the bridge.</p> 
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<h6><strong>Disclaimer</strong></h6> 
<p>The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.</p> 
<p>The post <a href="https://www.altcoinbuzz.io/cryptocurrency-news/could-the-first-cardano-bitcoin-bridge-revolutionize-defi/">Could the First Cardano-Bitcoin Bridge Revolutionize DeFi?</a> appeared first on <a href="https://www.altcoinbuzz.io">Altcoin Buzz</a>.</p>

Could the First Cardano-Bitcoin Bridge Revolutionize DeFi?

Altcoin Buzz

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