Originally published on: November 04, 2024
The usage of Internet Computer’s cross-chain messaging protocol, Chain Fusion, has skyrocketed by a whopping 1,230% year-over-year, driven primarily by Bitcoin-native applications. This surge in activity has been revealed in a recent report by The Dfinity Foundation.
Popular Bitcoin apps like Rainbow Protocol, Tap Protocol, and Bitfinity are harnessing the power of Internet Computer to deploy smart contracts and intricate programs on the Bitcoin network. Chain Fusion is revolutionary in that it allows smart contracts for Bitcoin without the need for trusted bridges, enabling direct interaction with the Bitcoin network.
Internet Computer, described as a collection of protocols that unite independent data centers globally to offer a decentralized alternative to traditional cloud providers, is experiencing a notable uptick in network activity across all its protocols. This has seen a 150% increase year-over-year, according to Dfinity.
The recent Taproot upgrade on the Bitcoin network has spurred the growth of Bitcoin-native decentralized exchanges (DEXs) and layer-2 (L2) scaling solutions, resulting in a total value locked (TVL) surpassing $2.6 billion. Despite this positive trend, Bitcoin-native DeFi is still in its early stages and faces challenges due to limited interoperability among DEXs, as highlighted by Alex Luce, CEO of Bitcoin developer Rebar Labs.
In response to the fragmented DEX ecosystem, efforts are being made to promote interoperability, such as the development of products like Rebar Shield by Rebar Labs. The goal is to address issues related to liquidity fragmentation and lack of interoperability on the Bitcoin network.
Looking ahead, Chain Fusion’s focus is now on integrating with Solana, according to Dfinity’s Internet Computer ecosystem report. Solana’s TVL has surged significantly, from under $250 million to nearly $6 billion, underscoring the platform’s growing popularity and demand.
Recent developments, including the transition of an AI model onto the Internet Computer blockchain by DecideAI, showcase the versatility and potential of this innovative cross-chain messaging protocol.
As the Bitcoin DeFi craze continues to gain momentum, the utilization of Internet Computer’s Chain Fusion protocol is poised for further growth and integration with leading blockchain networks, offering new opportunities for developers and users alike. Stay tuned for more updates on this evolving ecosystem.
