Bitfinity Network Secures $7 Million for Bitcoin Sidechain Development on Internet Computer

Blockchain infrastructure company Bitfinity Network Today, Bitfinity revealed that it has raised upwards of $7 million from various investors, including Polychain Capital and ParaFi Capital, to bolster its ongoing work on a compatibility layer for Ethereum Virtual Machine (EVM) on the Internet Computer.

This advancement will empower Solidity developers and existing EVM-compatible projects to construct Bitcoin-enabled decentralized apps (dApps).

As stated by the company, the goal is to set up an off-chain infrastructure tailored for Bitcoin and Ordinals, which involves developing a Bitcoin sidechain fully integrated into the Internet Computer blockchain.

The Internet Computer is a blockchain-based This computing platform is crafted to broaden the internet's capabilities and deliver a scalable and secure setting for hosting decentralized applications (dApps) and smart contracts.

"This financing reaffirms our commitment to enhancing utility for developers within the Solidity, Bitcoin, and Internet Computer ecosystems. The soon-to-be-unveiled Bitfinity EVM will facilitate the deployment of EVM dApps at speeds up to 100 times quicker than Ethereum, and at a mere fraction of the expense. Bitfinity’s EVM supports the Bitcoin vision by effectively serving as a Bitcoin sidechain, and we’re excited about future developments involving Taproot assets,\" commented Max Chamberlin, the founder of Bitfinity.

What sets Bitfinity apart is its innovative use of the Internet Computer’s threshold signature methodology, known as Chain-Key. This distinct strategy guarantees secure management and transfer of Bitcoin and Ordinal assets on-chain. The Chain-Key system boosts both security and transparency, offering a strong alternative to traditional bridging methods.

Enhancing the Interoperability Between Bitcoin and Ethereum

With this integration, Bitfinity becomes the pioneer EVM to connect with the Bitcoin network without depending on conventional intermediary bridges. This development creates interoperability between the Bitcoin and Ethereum ecosystems, opening doors to unprecedented opportunities for decentralized finance ventures.

Bitfinity’s collaboration with the Internet Computer blockchain tackles long-standing hurdles, making Bitcoin accessible in the DeFi realm for the first time. This trust-minimized architecture eradicates the dependence on hardware-based solutions, marking a major leap forward in Bitcoin’s integration with decentralized finance.

In addition, Bitfinity EVM rolls out a host of features that include:

• Access for Solidity smart contracts to ckBTC, which is secured 1:1 by Bitcoin, with on-chain proof of reserves and decentralized management through Chain-Key.
• A fully decentralized architecture where the backend is built in Solidity while the frontend operates entirely on-chain on the Internet Computer.
• Delivers speeds that are 100 times greater than the Ethereum mainnet while significantly slashing gas fees.
• The EVM's security integrity has been vetted through an audit conducted by Quantstamp.

"Bitfinity maintains that Ordinals are inscribed directly onto the Bitcoin blockchain, and thus, it doesn't alter the fundamental philosophy of on-chain digital assets. In essence, it simply lowers the transaction costs, and we anticipate that numerous users will favor this low-cost sidechain or Layer 2 solution for their transactions,\" a Bitfinity representative explained to Metaverse Post.

Looking ahead, Bitfinity’s roadmap outlines further integration plans, such as including Taproot assets, which encompass Ordinals and BRC-20 tokens. The protocol aspires to establish on-chain indexers that monitor transactions of Taproot assets recorded in segWit data fields.