Bitfinity Network, a Web3 infrastructure firm, has successfully raised over $7 million in funding from major backers, including Polychain Capital and ParaFi Capital. The company is on the brink of launching its Ethereum Virtual Machine (EVM). Max Chamberlin, the founder of Bitfinity, emphasized the significance of the support from leading investors in the blockchain space.
The funds obtained will be allocated towards the project’s mission, which focuses on establishing off-chain infrastructure for Bitcoin and Ordinals. Chamberlin highlighted that this backing reinforces Bitfinity’s commitment to enhancing utility for developers in the Bitcoin, Solidity, and Internet Computer (ICP) communities.
Ben Forman, Managing Partner at ParaFi Capital, pointed out that solidity developers can now benefit from Bitfinity’s EVM with its high throughput, low fees, and support for Bitcoin-native operations. Chamberlin also discussed how the EVM addresses the limitation of Bitcoin’s use and hinted at a potential wave of DeFi and tokenization on Bitcoin, akin to the developments on the Ethereum network.
Solving the Issue of Bitcoin’s Limited Use
The substantial funding announcement aligns with the ongoing development of the Bitfinity Ethereum Virtual Machine (EVM). This innovative technology is characterized as a Bitcoin sidechain seamlessly integrated into the Internet Computer blockchain, with the anticipated addition of Taproot assets in the near future.
The Bitfinity EVM empowers solidity developers and existing EVM-compatible services to construct decentralized apps (dapps) that are Bitcoin-enabled. The team asserts that the deployment of EVM dapps using Bitfinity’s technology will achieve speeds 100 times faster than Ethereum and at a significantly reduced cost. This advancement holds the potential to bring about a paradigm shift in the efficiency and affordability of decentralized application development within the blockchain ecosystem.
The integration between Bitfinity’s Ethereum Virtual Machine (EVM) and the Internet Computer blockchain effectively bridges “the worlds of Bitcoin and Ethereum,” according to the team. This integration fosters enhanced interoperability, significantly broadening the scope of possibilities for decentralized finance (DeFi) applications.
Max Chamberlin, the Founder of Bitfinity, emphasized the transformative potential of this integration, stating that it allows users to actively engage with their Bitcoin assets. He envisioned scenarios where individuals could participate in lending and borrowing pools or automated market makers, earning yield from their Bitcoin holdings. Chamberlin also highlighted the opportunity to use Bitcoin as an asset for restaking and securing other networks, thereby unlocking its potential beyond being a passive investment with no interest or yield.
He drew attention to the explosion of asset types on Bitcoin, such as Ordinals, Runes, and BRC20, emphasizing the growing need for blockchain technology to facilitate DeFi services not just for Bitcoin but for the emerging token ecosystem within the Bitcoin network. This marks a significant step toward expanding the utility and active participation of Bitcoin in the broader decentralized financial landscape.
Incoming EVM Launch
Max Chamberlin mentioned that the Bitfinity Ethereum Virtual Machine (EVM) is anticipated to launch on the mainnet in mid to late January. This marks a significant milestone, as it will be the first EVM to seamlessly integrate with Bitcoin without relying on intermediary bridges, as highlighted in the announcement.
Bitfinity leverages the Internet Computer’s threshold signature scheme, known as Chain-Key, to facilitate smart contracts holding and transferring BTC and Ordinal assets on-chain. This innovative approach is designed to offer heightened security and transparency compared to traditional bridge mechanisms, providing developers and users with a means to avoid potential annual attack vectors amounting to $3 billion.
The integration of Bitcoin into DeFi has historically been challenging due to its initial lack of compatibility with smart contracts. However, Bitfinity’s integration with the Internet Computer (ICP) has paved the way for Bitcoin to become accessible within the DeFi ecosystem, overcoming previous limitations. This development holds the promise of unlocking new possibilities for decentralized finance and the broader token ecosystem on the Bitcoin network.
Ben Forman from ParaFi Capital emphasized the increasing demand for integrating Bitcoin, stating that “we believe Bitfinity’s EVM opens up the Bitcoin ecosystem to novel use cases and applications.”
Max Chamberlin, the Founder of Bitfinity, provided insight into potential use cases for the Bitfinity EVM, including lending and borrowing platforms and automated market makers (similar to Uniswap) that use Bitcoin as the base asset. He also mentioned the possibility of borrowing against Ordinals (NFTs on Bitcoin) and utilizing the proceeds for trading or purchasing other services.
The notable features of the Bitfinity EVM include Solidity smart contracts gaining access to ckBTC, a fully decentralized stack, speeds 100 times faster than the Ethereum Mainnet, lower gas fees, and having undergone auditing by Quantstamp. These features collectively position Bitfinity’s EVM as a groundbreaking solution that not only addresses the limitations of Bitcoin in smart contract functionality but also offers enhanced efficiency and security compared to existing alternatives.
Expect a DeFi Wave
Max Chamberlin, the Founder of Bitfinity, acknowledged that the journey to develop off-chain infrastructure for Bitcoin and Ordinals may encounter challenges but emphasized that the effort would be worthwhile. He noted that, in the short term, there are “simple and somewhat centralized platforms” for exchanging both BRC20 and Ordinals.
However, he highlighted the need for substantial infrastructure to establish decentralized DeFi services for Ordinals. This infrastructure includes implementing threshold signature schemes for custodying assets on the side-chain or Layer 2 (L2) and developing decentralized indexers specifically designed for Ordinals.
Chamberlin expressed confidence in the ongoing development on the Internet Computer (ICP) and Bitfinity, stating that once these critical pieces of infrastructure are in place, a wave of DeFi and tokenization similar to that on Ethereum can be expected.
The press release further outlined Bitfinity’s roadmap, indicating plans to integrate Taproot assets, including Ordinals and BRC-20 tokens, into its protocol. This integration will involve creating on-chain indexers that monitor Taproot asset transactions recorded in the segWit data fields. This reflects a strategic initiative to enhance and expand the capabilities of Bitfinity’s protocol in the future.
