Aurora Integrates Bitcoin With NEAR to Unlock New DeFi Use Cases - Chainwire

13Aug

Aurora Integrates Bitcoin With NEAR to Unlock New DeFi Use Cases

Gibraltar, British Overseas Territories, August 13th, 2024, Chainwire

Aurora Labs has announced the release of Bitcoin Light Client and Relayer, connecting the Bitcoin network and NEAR protocol for the first time. The integration paves the way for new DeFi use cases and expands web3 interoperability.

The Bitcoin Light Client, developed by Aurora Labs, operates as a smart contract on the NEAR network. It allows NEAR dapps to verify Bitcoin transactions and ensures that NEAR can access the latest Bitcoin chain state. The light client forms the foundation of a future Bitcoin bridge that will allow Bitcoin assets to be used on NEAR.

In addition, Aurora Labs has released a Relayer Service that ensures the light client remains in sync with the Bitcoin network. It acts as a bridge, continuously updating the smart contract on NEAR with the latest Bitcoin transactions.

The release of these Bitcoin products has been complemented by the launch of a chain signature service for NEAR developed by Proximity Labs. This enables the creation of native Bitcoin bridges by allowing the transfer of BTC to and from the NEAR network.

The launch of the Bitcoin Light Client is a crucial step towards achieving a unified web3 experience, allowing assets to move seamlessly between Bitcoin and NEAR. Its release paves the way for a host of innovations that will expand the use cases available to developers building on NEAR.

The subsequent deployment of the Satoshi Bridge, allowing direct BTC deposits into NEAR and interaction with its dapps, will further expand this capability. In addition to making BTC available on NEAR, the bridge will allow Rune and Ordinals to be integrated and open the door for the creation of new DeFi applications that combine the best of Bitcoin and NEAR.

Alex Shevchenko, Aurora Labs’ CEO, said in a quote: “There’s a lot of untapped value in the Bitcoin ecosystem. NEAR Chain Signatures are a solid step forward, but to really unlock Bitcoin’s potential, we need the ability to read and act on its state. That’s why we created a trustless Bitcoin Light Client that works as a smart contract. With this and Chain Signatures together, we’re opening the door for Bitcoin to finally enter the DeFi world.”

Kendall Cole, founder of Proximity Labs, added: “The BTC light client is a critical part of the Bitcoin stack that NEAR now enables. When combined with chain signatures, developers will be able to create an entirely new set of applications for Bitcoin users, including money markets, DEXs, launchpads, stablecoins, and more, all with seamless user experiences.”

After initiating its development, Aurora Labs is handing over the project to NEAR One, the research and development hub for NEAR Protocol’s infrastructure, to continue its growth and progress.

About Aurora Labs

Aurora Labs is the development company behind Aurora, a network of Virtual Chains that combines NEAR’s scalability with powerful infrastructure for the easy deployment of preconfigured blockchains. By integrating a high-performance EVM, the trustless Rainbow Bridge, and advanced Cross Contract Call technology, Aurora goes beyond full Ethereum compatibility, opening the doors to a multichain world.