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Internet Computer sees 13x rise in protocol use

Internet Computer sees 13x rise in protocol use

GrafaGrafa2024/11/05 14:00
By:Liezl Gambe

Internet Computer’s (CRYPTO:ICP) Chain Fusion protocol has recorded a substantial increase in usage, growing 1,230% year-over-year, largely due to Bitcoin-native (CRYPTO:BTC) applications.

This data, reported by developer Dfinity on Nov. 4, highlights how Chain Fusion supports Bitcoin projects like Rainbow Protocol, Tap Protocol, and Bitfinity in deploying smart contracts and complex applications on the Bitcoin network.

"Chain Fusion's unique functionality enables smart contracts for Bitcoin as ICP can directly interact with the Bitcoin network without using any trusted bridges," Dfinity explained.

As a decentralised alternative to traditional cloud providers, Internet Computer combines independent data centers worldwide through a set of protocols.

Network activity across Internet Computer has surged by 150% year-over-year, underscoring a rising interest in blockchain solutions.

This growth aligns with Bitcoin’s own expansion into DeFi, especially following the 2021 Taproot upgrade, which spurred the development of decentralised exchanges (DEXs) and layer-2 scaling options for Bitcoin.

Despite this progress, interoperability challenges persist in Bitcoin DeFi.

"On Bitcoin, these DEXs aren’t very interoperable, and liquidity is fragmented," noted Alex Luce, CEO of Bitcoin development firm Rebar Labs.

Luce sees a need for solutions that improve integration across DEXs, enhancing user experience and market efficiency.

Looking ahead, Chain Fusion’s next goal is to integrate with Solana, a network with rapidly growing total value locked (TVL), reaching close to $6 billion, according to DefiLlama.

This integration could bring further connectivity to the blockchain ecosystem, as Dfinity continues to support developers with tools for decentralised interactions across networks.

At the time of writing, the Internet Computer (ICP) price was $7.14.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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