ICP: Moving Fast as Bitcoin’s Most Decentralised Sidechain

The Internet Computer Protocol (ICP) is emerging as a powerful sidechain for Bitcoin. Bob Bodily, founder of Bioniq and a prominent voice in the community, shared extensive insights on why ICP is a crucial player in Bitcoin’s expanding ecosystem.

“ICP operates as a Bitcoin sidechain, thanks to its separate consensus model and token,” Bodily explains. This means it functions independently yet remains connected, allowing developers to leverage Bitcoin’s robust security while adding new capabilities. The ability to compare ICP to other Bitcoin L2s like Stacks, Rootstock, and Liquid underscores its position as a key component in Bitcoin’s broader ecosystem.

One of the standout features of ICP is its Bitcoin light node, fully operational on-chain. “This light node allows users to retrieve UTXOs, balances, and block headers directly through smart contract calls,” Bodily highlights. What sets it apart is the decentralized approach to pulling Bitcoin data onto the sidechain. A network of nodes ensures data integrity by pulling from multiple trusted Bitcoin full nodes and running this data through a consensus process before storing it on-chain.

ICP’s threshold signing subnets are another revolutionary feature. “These subnets, equipped with ECDSA and Schnorr signing capabilities, enable smart contracts on ICP to own Bitcoin addresses and sign L1 Bitcoin transactions directly,” Bodily notes. This opens up a world of possibilities, from super-charged DLCs to seamless bridges for Bitcoin assets, including Ordinals, BRC-20, and more. The tech also facilitates interactions with other chains, such as ETH, Solana, and Cosmos, further enhancing its versatility.

One of the most significant advancements brought by ICP is the Bitcoin bridge, which allows for the wrapped version of Bitcoin on ICP—ckBTC. Users can deposit Bitcoin into an ECDSA threshold signing subnet address, and after just six confirmations, ckBTC is minted. “ckBTC offers fast finality with 2-second transfers and low transaction fees, making it a compelling option for those looking to leverage Bitcoin on ICP,” Bodily emphasizes.

ICP’s subnet model is a key driver behind its fast finality. With geographically distributed nodes operating within each subnet, ICP achieves 2-second finality for smart contracts. While this model sacrifices global state verification, the tradeoff for speed is a calculated one, allowing ICP to maintain its edge in scalability.

When it comes to on-chain smart contract storage, ICP offers a highly affordable solution. “At just $5 per GB per year, ICP allows smart contracts to store up to 400GB of data natively,” Bodily points out. This makes it possible to store high-resolution images, videos, and 3D models directly on-chain, without needing external services like IPFS or Arweave.

The WASM-based architecture of ICP is another major advantage, as it supports multiple programming languages, including TypeScript, Python, and Rust. “Developers can pull in existing libraries to build smart contracts on ICP, making it a developer-friendly environment,” Bodily says. This flexibility extends to hosting websites directly from smart contracts, enabling fully decentralized applications that include both backend and frontend components.

Another aspect that makes ICP stand out is its no-gas model for users. “Transactions on ICP are sponsored by default, meaning users don’t have to pay fees. This makes for a smoother user experience, as they don’t need to acquire tokens to interact with the network,” Bodily explains. This model is particularly effective on ICP, where fees are minimal, allowing developers to absorb the costs without burdening users.

ICP’s ability to handle decentralized oracles and indexers further cements its place as a leader in the blockchain space. “Smart contracts on ICP can make HTTP calls directly, allowing developers to build their own oracles and pull in data like price feeds, sports scores, and more,” Bodily shares. The decentralized nature of these oracles and indexers enhances security and reliability, offering a robust solution for those building on the platform.

ICP also enables on-chain recurring automated processes, a feature that adds significant value to developers. “With the ability to schedule cron jobs on-chain, developers can create automated processes that respond to events on the Bitcoin blockchain,” Bodily explains. This could include actions like sending tokens based on specific blockchain events, all handled programmatically within smart contracts.

In summary, ICP is pushing the boundaries of what’s possible in the blockchain space, particularly as a Bitcoin sidechain. Its unique features—from threshold signing subnets to affordable on-chain storage and decentralized oracles—make it an attractive option for developers looking to build Bitcoin applications. Bodily’s insights into ICP’s capabilities highlight why this protocol is becoming an essential tool for those in the blockchain space, offering a blend of innovation and practicality that is hard to match.

“ICP’s integration with Bitcoin and its ability to offer decentralized, scalable solutions make it a key player in the evolving blockchain landscape,” Bodily concludes. As more developers turn to ICP for building next-generation applications, its role as a sidechain for Bitcoin will likely become even more pronounced, driving forward both Bitcoin’s ecosystem and the broader blockchain industry.

 

 

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Maria Irene
Maria Irenehttp://ledgerlife.io/
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.

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