Cardano has integrated into the Bitcoin ecosystem via the BitcoinOS Grail Bridge, unlocking the substantial liquidity of the leading digital asset for its DeFi ecosystem.
On October 24, BitcoinOS explained that the move would expand Bitcoin’s reach and enable decentralized programmability on its network.
The integration makes Cardano the first layer 1 blockchain to use BitcoinOS infrastructure, leveraging Bitcoin’s vast $1.3 trillion liquidity pool. BitcoinOS has already announced integrations with several other Bitcoin Layer-2 chains, including Merlin and Sovyrn.
The partnership aims to fill a critical gap in the Bitcoin network by introducing the infrastructure necessary for DeFi activities.
Although Bitcoin leads in terms of value, most crypto activity takes place outside of its ecosystem. With this in mind, BitcoinOS designed the integration to connect Bitcoin with the rest of the crypto world, fostering a unified digital landscape that maximizes value.
Grail Bridge
BitcoinOS explained that its Grail Bridge uses zero-knowledge cryptography to allow Bitcoin users to move their assets securely.
The partnership allows Cardano to leverage the Grail Bridge to increase liquidity, facilitating trustless transfers of BTC and other Bitcoin-based assets.
Cardano founder Charles Hoskinson has said that BitcoinOS functions not as a simple bridge but as a “brains” guiding Bitcoin’s integration into the broader crypto ecosystem.
He added:
“(BitcoinOS) is going to let Bitcoin enter the crypto world, and they can finally abandon their boring lives and enjoy DeFi, GameFi, and the magic of smart contracts.
Hoskinson also highlighted an additional benefit of the integration, noting that it allows users to pay fees directly in Bitcoin, creating mutual benefits for users. He declared:
“Whether your Bitcoin stays at home or goes to other chains, it has no impact on the Bitcoin network. With BOS, they can now interact with other registers. Only with cardano will you be able to do this natively with UTXO and soon pay your transaction fees in Bitcoin. This means that Bitcoin now has a smart contract layer.
