By overcoming Bitcoin’s current limitations, Bitfinity aims to open the Bitcoin network to more uses and expand the decentralized finance ecosystem.

The project completed this major financing round in early 2024, receiving significant support from institutional investors.

While institutional investors such as Polychain and ParaFi became involved in this process, the $5 million OTC (over-the-counter) token sale provided by the community supported Bitfinity’s community-focused structure.

The solution offered by Bitfinity aims to offer Bitcoin users a DeFi ecosystem compatible with Ethereum. This will open up the opportunity to use more decentralized applications and financial instruments for users investing in Bitcoin.

The value of Bitcoin has recently risen above $92,000, increasing its use not only as a store of value but also in financial applications. In this context, Bitfinity Network plans to put Bitcoin’s potential to use in new areas.

Bitfinity Network will use Internet Computer Protocol (ICP) Chain Fusion Technology to enable Bitcoin assets to operate within an Ethereum-compatible ecosystem.

ICP’s Chain Fusion technology provides a cross-chain communication infrastructure that allows large blockchain networks such as Bitcoin to be integrated into the Ethereum ecosystem. This technology will enable Bitcoin users to participate in decentralized finance (DeFi) applications, creating a much wider usage area for Bitcoin.

Bitfinity is also taking important steps in security. The platform’s L2 network is based on a proof-of-stake protocol powered by “Chain-Key” technology. This allows the creation of large signature committees that can process Bitcoin Schnorr and ECDSA transactions.

It increases the security of users’ transactions by offering stronger security measures than traditional multi-sigs. Thus, Bitfinity offers an important infrastructure to run DeFi applications safely and efficiently.

Bitfinity also plans to host decentralized applications (DApps) such as Sonic, Chapswap, Lendfinity and Omnity Bridge on its platform. These DApps will enable users to use more financial tools and facilities by interacting with Bitcoin.

However, behind Bitfinity is the founder of the billion-dollar TVL lending and lending protocol Liquity. This will accelerate Bitfinity’s plans to integrate similar solutions into its platform in the future.

ICP’s Chain Fusion protocol has seen a huge increase in usage, especially with Bitcoin-specific applications. This protocol enables smart contracts and complex programming on the Bitcoin network.

BTC applications such as Rainbow Protocol, Tap Protocol and Bitfinity use ICP to make the Bitcoin network Ethereum compatible and handle smart contract transactions.

Bitfinity Network is taking an important step in integrating Bitcoin into the DeFi world. Thanks to Ethereum compatibility, Bitcoin users will be included in a broader financial ecosystem and the usage areas of Bitcoin will expand.

Additionally, cross-chain integration with ICP’s Chain Fusion technology will enable Bitcoin to be used with advanced features such as smart contracts. This offers a great opportunity to use Bitcoin’s potential more efficiently.