Recently, Charles Hoskinson of Cardano showed surprise as a developer introduced a new way to connect Bitcoin and Cardano. This smart contract–designed by an elraulito developer, lets Bitcoin wallets directly use Cardano’s features. This means users can manage ADA, handle tokens and stake without needing a new wallet. Hoskinson reacted with a GIF on X platform where a man is dramatically removing his glasses.
https://t.co/5kd1OA6t8O pic.twitter.com/Be7ElbBOnj
— Charles Hoskinson (@IOHK_Charles) September 22, 2024
The developer’s X thread revealed the smart contract uses various tools and protocols. Aiken–a tool for Cardano development–helped write the contract and CIP69–a proposal to make addresses more flexible was also crucial. Multivalidators oversee transactions and withdrawals while Mesh SDK handles transactions off the main blockchain.
Plutus V3 and How it Works
Plutus V3 is the latest update to Cardano’s smart contract platform. It adds new features that improve how it works with other blockchains. These features reduce the size of the contract and speed up its execution. This was important for building the new smart contract that connects Bitcoin and Cardano.
Bitcoin users can lock their Bitcoin and use it in a Cardano smart contract to earn yields in ADA. The setup checks each transaction thoroughly to make sure all actions follow the contract’s rules and are carried out correctly.
Community Reaction
This development has excited many people in the blockchain community. It opens up new possibilities for using decentralized finance (DeFi) applications. Along with this it also increases the chances for how different blockchain systems work together.
Plutus V3 is a game-changer. This new smart contract platform improves interoperability for different systems. It puts Cardano right at the top of the list when it comes to connecting different blockchains.
Cardano to Boosts Interoperability with February Plutus UpgradeThis is a big step forward for Cardano. It helps Cardano process more transactions, work better with other systems, and be more sustainable. The integration shows Cardano’s dedication to evolving and maintaining a powerful blockchain ecosystem.
Elraulito’s bridge could be a game-changer supporting inter blockchain movement of tokens. As it helps to move coins between different blockchains, simplify transactions and increase adoption. As the crypto world grows, bridges like this will be essential for connecting the dots.
