Milestone for ICP: DeFi BTC Wallet Functionality Incoming

NNS Dapp Canisters Completed for Upgrade

Just a week after the first Chain Key Bitcoin (ckBTC) was minted on the Internet Computer (ICP), the Network Nervous System (NNS) Canister Upgrades are nearly complete. The move effectively ushers in ckBTC wallet functionality and opens the ICP ecosystem to Decentralized Finance (DeFi) for Bitcoin.

The upgrade, referenced on Twitter by Manu Drijvers, a Cryptography Researcher at DFINITY, still requires a few more upgrades to scale functionality to the public but represents a significant step toward Bitcoin DeFi. The proposal on the ICP dashboard has near-unanimous approval to launch the code canisters that will give easy ckBTC functionality to decentralized wallets.

Once the canister upgrades are released, projects can begin deploying the code on different wallets across the ICP ecosystem. It’s at that point when Bitcoin liquidity will be fully unleashed into the network.

ckBTC will be able to be traded for native Bitcoin (BTC) and represents a 1:1 analog for Bitcoin on the Internet Computer network. The ckBTC version of Bitcoin has a stronger and more decentralized trust architecture, making it safer and more seamless for DeFi than a wrapped token bridge counterpart. Simply put, Bitcoin DeFi has enormous potential.

The transactions that use Bitcoin on the Internet Computer will also use the native $ICP as its gas token. The transactions occurring through the Bitcoin network will auto-convert BTC to ICP and burn it, making the transactions deflationary for the $ICP token.

The ckBTC wallet upgrade is a major milestone for the ICP community, helping bring Bitcoin compatibility to DeFi for the first time on the Internet Computer. The ckBTC will unlock DeFi services for ckBTC throughout the Decentralized Applications (Dapps) in the Internet Computer ecosystem.

Stay tuned for more updates.

What is the Internet Computer:

Internet Computer (ICP) is a set of protocols that allow independent data centers around the world to band together and offer a decentralized alternative to the current centralized internet cloud providers. The Internet Computer is a World Computer blockchain that can host and run mass-market social networks, online games, video streaming services, or enterprise systems entirely on the blockchain itself — eliminating the need for centralized IT and cloud services. The native ICP token is used for governance (holders can vote on the future of the network), to reward network participants for good behavior, and is used to pay fees for making transactions.

Where to find the Internet Computer:

Website | Twitter | Medium | Discord |