Chainlink, a blockchain oracle provider, has announced its first expansion into Bitcoin’s decentralized finance (DeFi) ecosystem. It has collaborated with Botanix Labs to integrate Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into the Spiderchain network.
This collaboration marks a significant step in extending DeFi functionality to Bitcoin. It does this by harnessing Chainlink’s proven infrastructure and Botanix’s Bitcoin Layer-2 (L2) solution.
Chainlink Enhances Bitcoin with Spiderchain and CCIP
As part of the partnership, Botanix Labs has joined Chainlink’s Scale Program. The program promotes sustainable growth of decentralized protocols by providing essential resources for long-term success. Chainlink Scale will allow Botanix to access its premium Oracle services, including data feeds, at reduced operational costs during the early phases of the Spiderchain network.
Meanwhile, Spiderchain’s integration of Chainlink’s technology offers numerous advantages for the Bitcoin ecosystem. The network runs on five-second block times, a dramatic improvement over Bitcoin’s 10-minute average. This enables faster transactions while at the same time reducing settlement times.
Read More: What Is Chainlink (LINK)?
With transaction fees of only a few cents, it becomes feasible to explore use cases like micropayments. This would have otherwise been impractical on Bitcoin’s main chain due to higher fees and slower processing times.
Notably, Bitcoin was not originally designed to support smart contracts. However, Spiderchain’s Ethereum Virtual Machine (EVM) compatibility makes this possible.
This advancement opens Bitcoin to more complex financial instruments and dApps, which offer deeper liquidity and greater capital efficiency.
“Bitcoin layer-2s are redefining how the world views Bitcoin. This partnership will enrich the Bitcoin ecosystem and the greater blockchain industry,” said Johann Eid, Chief Business Officer at Chainlink Labs.
Of note, Botanix Labs joins the list of firms adopting Chainlink’s CCIP. The protocol solves blockchain interoperability while maintaining data integrity and confidentiality.
Its functionality also extends to private chain-to-public chain transactions, offering a layer of privacy that meets both operational needs and regulatory demands. Key adopters include Mountain Protocol and Ronin Validators, among others.
Read More: How To Buy Chainlink (LINK) and Everything You Need To Know
LINK Price Performance. Source: BeInCrypto
Despite the advancement of CCIP, Chainklink’s powering token, LINK, continues to register poor price performance. BeInCrypto data shows that the LINK token is down by almost 3%. It is trading for $11.31 as of this writing.
The post Chainlink Brings DeFi to Bitcoin with Spiderchain and CCIP appeared first on BeInCrypto.