In what could become a groundbreaking moment or inflection point in the trajectory of the Bitcoin DeFi landscape, ALEX and XLink have collaborated with NEAR to develop Bitcoin Oracle V2, which will introduce a faster, safer, and more user-friendly experience for Bitcoin users.
Setting the Foundation Right for Bitcoin DeFi
For a long time, Bitcoin has earned its reputation as a store of value, while Ethereum has been recognized for empowering the decentralized world. However, with ALEX and XLink as forerunners, Bitcoin has broken the glass ceiling to emerge as a versatile data layer, registering significant momentum in its layer-2 activity.
Now ALEX and Xlink are more efficient and powerful by using NEAR protocol’s Chain Signatures technology. Chain signatures equip NEAR accounts, including smart contracts, to sign and execute transactions across several blockchain protocols, unlocking the next level of blockchain interoperability with ownership spread across diverse assets, cross-chain accounts, and data tied to each NEAR account.
ALEX and Xlink’s use of this technology translates to a more effective Bitcoin Oracle—a cross-chain messaging and consensus layer created by ALEX.
Bitcoin Oracle: Specialties, Potential, and All That Shines on the Horizon
The ALEX-created Bitcoin Oracle enables Bitcoin to expand beyond its traditional roles by facilitating interaction with other blockchains. It maintains the integrity of these interactions by supporting, checking, and validating complex calculations that take place off the Bitcoin blockchain. Beyond ensuring security and accuracy that helps minimize risks, the Oracle also acts as a crucial instrument in unlocking new Bitcoin-DeFi possibilities.
Now that ALEX, XLink, and NEAR are aligned, each will contribute in their own special way to make Oracle an ideal candidate for a decentralized Bitcoin future.
NEAR, through its chain signature technology, will ensure a secure, decentralized MPC network as the foundation of the Oracle, which will have an advanced cryptographic protocol as its backbone, contributing to speed and scalability in a more meaningful way.
Xlink will further enhance these qualities by boosting transaction throughput and confirmation speed. User experience is set to improve significantly, as interaction with Layer-2 Smart Contracts will be possible using only a Bitcoin wallet and native Bitcoin (BTC) or Layer 1 (L1) assets. Xlink’s incorporation into the combined mechanism will also enable more efficient asset movement across chains, transitioning from the current “lock-and-mint” to account-based routing.
Finally, with ALEX becoming more powerful, Bitcoin users will gain access to an unparalleled permissionless and decentralized trading platform featuring unified Bitcoin liquidity, advanced trading tools, simplified cross-chain trading, and yield-bearing assets.
The partnership forms the perfect trident, positioning the Bitcoin DeFi paradigm for significant growth.