Omnity, the omnichain protocol, has introduced an integration that allows for the trading of Rune tokens on the Bitcoin network without the need for gas or transaction fees. The integration is based on Internet Computer Protocol’s chain fusion technology, which allows the network to interact with the Bitcoin network and other blockchains. According to Louis Liu, the founder of Omnity and the Octpus Network, this integration differs from other Bitcoin interoperability protocols because it doesn’t rely on wrapped tokens or off-chain relayers that can be exploited. In the future, Omnity plans to add support for Bitcoin Ordinals and Ethereum nonfungible tokens (NFTs).
By addressing the need for scaling solutions for the Bitcoin blockchain, this integration aims to tap into the increased demand due to the recent surge in activity. The launch of Bitcoin exchange-traded funds (ETFs) and the introduction of Runes tokens, a new protocol for issuing fungible tokens on the Bitcoin network, have contributed to a significant increase in blockchain traffic. On April 20, the Bitcoin network recorded a record-high of 926,842 transactions, with Runes tokens accounting for 68% of the activity. Data from Dune reveals that 3.6 million Runes transactions were executed on that day.
Louis Liu explains that with the growing development and interest in Bitcoin, developers are seeking solutions to trade Bitcoin assets without congesting the network and subjecting users to high fees. Bitcoin is expected to drive innovation in the cryptocurrency space by exploring trends such as layer-2 solutions, roll-ups, and integration with decentralized finance (DeFi). Mauricio Di Bartolomeo, the CEO of Ledn, believes that Bitcoin will also be used as collateral for borrowing and earning interest, providing access to financial services for those who cannot easily access U.S. listed products.
Louis Liu’s explanation sounds a bit vague. I need more technical details to understand how this integration works.
It’s frustrating to see Bitcoin’s network congestion and high fees. I hope this integration can actually solve those issues.
Just because Bitcoin is driving innovation doesn’t mean every solution is a good one. Proceed with caution.
I completely agree with Mauricio Di Bartolomeo’s belief in Bitcoin’s potential as collateral for borrowing and earning interest. It will definitely improve access to financial services for many people.