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@ Rebbeca Ren
2024-07-11 21:15:50Even with Bitcoin's price dip, the infrastructure scene is heating up!
I had the pleasure of speaking with Bitcoin oracle provider APRO Oracle and Data Availability (DA) Layer service Multiadaptive today, and wanna share my two cents here with my fellow Bitcoiners.
For those unfamiliar with the terms "Oracle" and "DA Layer," let's break them down:
Oracles in the Crypto World
Smart contracts, which are self-executing contracts with the terms directly written into code, can only execute based on data available within the blockchain. Oracles act as bridges between blockchains and the outside world, providing access to external data and enabling the creation of complex and useful decentralized applications (dApps).
In DeFi, for example, oracles supply price feeds for various assets, allowing lending, borrowing, and trading platforms to function accurately. This capability extends to gaming, prediction markets, and more, expanding the potential use cases for blockchain technology.
Oracles on Bitcoin
While the Bitcoin blockchain itself does not support smart contracts, Layer 2 solutions provide the necessary infrastructure for oracles to operate. Layer 2 solutions are built on top of the Bitcoin blockchain to enhance its scalability, speed, and functionality without altering the base layer. These solutions address Bitcoin's limitations, such as slow transaction times and high fees, by offloading some transaction processing to secondary layers.
Apro Oracle prides itself on being the first decentralized oracle specifically designed for the Bitcoin ecosystem. It has been instrumental in supporting Layer 2 projects like Merlin and Bitlayer.
Simon, the company's tech lead with a strong background in OKX's security team, brings years of experience in ensuring seamless data flow between the real world and Layer 2 solutions, enhancing transaction safety and reliability.
**What is a Data Availability (DA) Layer? **
A DAL stores and ensures transaction data availability. It’s crucial for scaling and modular blockchain architectures. DALs help process more transactions without overloading the main chain, leading to higher throughput and lower costs.
What Does MultiAdaptive Do?
MultiAdaptive uses Bitcoin protocols like Ordinals to publish data. This method lets users inscribe unique data to satoshis, Bitcoin’s smallest units. Users send NFT-like Ordinal transactions to MultiAdaptive nodes for verification and then to Bitcoin for storing and broadcasting. MultiAdaptive leverages Bitcoin as a “witness” in the data publishing process. No need for bridging between chains!
In a nutshell, there are three parties involved: users who are storing data, MultiAdaptive nodes that power data availability off-chain, and Bitcoin as the arbiter that witnesses the signing process.
Edwyn told us that MultiAdaptive started as a data availability network for Ethereum and quickly saw the demand for multichain data availability, adding support for Bitcoin.
The Bigger Picture
As crypto traders or holders, we might not see Oracle and DA Layer every day, but they’re the lifelines for every transaction. It’s lit to see builders like Apro and MultiAdaptive joining the Bitcoin ecosystem. They’re just the beginning—more builders are coming in to make Bitcoin as vibrant as Ethereum.
Bitcoin used to be all about being a store of value, lacking smart contracts for creating dApps, including DeFi. But with Ordinals popping up, it’s clear Bitcoiners want digital assets on Bitcoin. This demand is paving the way for DeFi projects like staking and lending in the Bitcoin ecosystem, making infrastructure providers jump on the bandwagon.
What's more, the Bitcoin blockchain is more secure, reliable, and decentralized compared to Ethereum, right?
I've got some exciting numbers to share! In Q1 2024, the total value locked (TVL) in the Bitcoin ecosystem skyrocketed over sixfold, jumping from $492 million to over $2.9 billion!
Plus, with Bitcoin staking project Babylon raising $70 million at the end of May, it feels like we're heading into a BitcoinFi summer.
Stay tuned as the Bitcoin ecosystem evolves and expands, bringing new possibilities and innovations to the blockchain world!
BTW, if you're building something in the Bitcoin ecosystem—be it infrastructure, ordinals, runes, gaming, social, or anything else—feel free to get in touch with me. Let’s vibe and collab!