Cardano has integrated with the Bitcoin ecosystem through Grail Bridge in BitcoinOS, unlocking substantial liquidity of the top digital asset to the DeFi ecosystem.
On October 24, BitcoinOS explained that the move expands the reach of Bitcoin and enables decentralized programming on the network.
This integration will make Cardano the first layer 1 blockchain to use the BitcoinOS infrastructure, leveraging Bitcoin's massive $1.3 trillion liquidity pool. BitcoinOS has already announced integrations with several other Bitcoin Layer-2 chains, including Merlin and Sovyrn.
This partnership aims to address critical gaps in the Bitcoin network by introducing the necessary infrastructure for DeFi activities.
Although Bitcoin leads in value, most cryptocurrency activity takes place outside of that ecosystem. With this in mind, BitcoinOS has designed integrations that bridge Bitcoin and the rest of the crypto world, facilitating a unified digital environment that maximizes value.
holy grail bridge
BitcoinOS explained that Grail Bridge uses zero-knowledge cryptography to allow Bitcoin users to securely move their assets.
This partnership will allow Cardano to leverage Grailbridge to increase liquidity and facilitate trustless transfers of BTC and other Bitcoin-based assets.
Cardano founder Charles Hoskinson said that BitcoinOS will not act as a simple bridge, but as the “brain” that guides the integration of Bitcoin into the broader crypto ecosystem.
He added:
“[BitcoinOS] With Bitcoin flowing into the crypto world, they can finally leave behind their boring lives and enjoy the magic of DeFi, GameFi, and smart contracts. ”
Hoskinson also highlighted an additional benefit of the integration, noting that users will be able to pay fees directly with Bitcoin, creating a mutual benefit for users. He said:
“Whether your Bitcoin remains at home or visits other chains, it has no effect on the Bitcoin network. BOS allows you to interact with other ledgers. Using Cardano Only when you do so can you run natively on UTXO and immediately pay transaction fees in Bitcoin. This means we have added a smart contract layer to Bitcoin.”
