dWallet Network and Avail Partnership Unveils Smart Contract Function for Bitcoin
Summary:
Bitcoin users may soon be able to utilize smart contract functions without surrendering control of their BTC by creating Bitcoin signatures, thanks to a new collaboration between dWallet Network and Avail. This new solution, championed by dWallet CEO Omer Sadika, aims to replace the current cross chain solutions and chaige mechanisms which he states are flawed due to their requirement of ceding BTC ownership. The integration promises broader Bitcoin capabilities and reinforced security via a decentralized multi-party computation protocol, effectively minimizing risks associated with hacking or collusion.
A novel partnership between dWallet Network and Avail may soon permit Bitcoin (BTC) users to utilize smart contract features without ever needing to bridge, wrap or surrender control of their BTC. The collaboration will let dWallet's smart contracts utilize Avail’s data availability solution to generate Bitcoin signatures, thus maintaining the user's absolute control over their BTC. CEO of dWallet, Omer Sadika, emphasized that their Bitcoin rollup solution interacts directly with native BTC, omitting the need for bridging or wrapping, which historically invite substantial hacking or collusion risks.
Sadika explains that the current cross chain solutions like bridges are flawed. They require their users to hand over their BTC, effectively surrendering ownership, which brings the threats of hacking or collusion that could potentially result in monumental losses. The Bitcoin community is highly critical of Bitcoin rollups or "Layer-2s" as many of these solutions deceive users into bridging or wrapping their BTC for other tokens. The Bitcoin (BTC) custody firm Casa's co-founder and CTO, Jameson Lopp, mentioned the testing of almost 30 Bitcoin layer-2 protocols.
Sadika says this issue is one he seeks to rectify through the integration with Avail. dWallets, he explains, equips users with programmable native BTC necessitating a cryptographically secure user signature. Multi-party computation, or MPC, is pivotal to this technology. Acting as a series of cryptographic protocols, MPC allows multiple entities to collectively compute a function while safeguarding their respective inputs.
The one-step operation carried out by a wallet on the MPC dWallet Network makes transactions in Bitcoin possible. The transaction method necessitates approval from a smart contract on an Avail rollup as well as a user's signature for the Bitcoin transaction. Further explaining, Sadika mentions that the smart contract on an Avail rollup can reinforce any logic, including custody, swapping, lending, and staking. The user’s involvement cryptographically ensures that the assets are secure from collusion or theft. He emphasized that as the dWallet generates a Bitcoin signature, the logic is executed on native BTC and not on a representation like wrapped tokens.
The partnership, as promised, will extend the functionality of Bitcoin through dWallet's MPC infrastructure by facilitating the creation of native rollups. Smart contracts will be able to execute any logic using native BTC, thus eliminating the need for bridging or wrapping tokens. It will enable DeFi protocols like swapping or lending to operate with native BTC. Additionally, other use-cases, such as staking native BTC, DAOs controlling native BTC, trading a portfolio of ordinals, or gaming, can now incorporate native BTC.
Co-founder of Avail, Anurag Arjun, noted the potential of programming BTC for other blockchains by employing a trust-minimized approach for driving Bitcoin adoption. dWallet technology enables Solidity smart contract on an Avail rollup to generate Bitcoin signatures and for developers to control a dWallet. The dWallet Network requires an approval from the Avail rollup smart contract for enforcing logic, and the users need to complete the signature as a security measure to avoid collusion and the risk of theft.
Published At
4/2/2024 4:00:00 PM
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