Bitcoin Liquidity Could Flow to Cardano Ecosystem With New BTC Bridge

EMURGO, a founding entity of Cardano, will be among ecosystem buildings developing tools and services to attract the BTC capital.

Bitcoin capital will now be able to flow into the Cardano ecosystem following the launch of Bitcoin rollup protocol BitcoinOS's Grail bridge for the Cardano network on Thursday.

The launch opens up possibilities for capital to move from Bitcoin into Cardano, and vice-versa, with a founding entity of Cardano, EMURGO, among those set to be involved in developing tools and services to attract the BTC capital.

BitcoinOS said it became the first to have verified ZK proofs on Bitcoin in April, and its Grail bridge uses that security infrastructure to allow assets to flow between blockchains.

“These bridges only require a single honest participant within a pool of potentially hundreds of operators (1-of-n) in a decentralized, dynamic, and permissionless operator set for your funds to remain secure,” BitcoinOS said in its release.

Bridges are blockchain-based tools that allow for the transfer of assets between different networks where they aren’t originally supported. Zero-Knowledge Proof (ZKP) is a cryptographic protocol allowing one party to prove if a statement is true without revealing additional information.

Bridges are among the most attacked and vulnerable crypto tools despite their large importance in the ecosystem. A ZKP-based bridge, in theory, cuts down on those security fears.

At press time, ADA was exchanging hands at 34 cents, down 2.5% in the past 24 hours alongside a wider market drop.