Key findings
- Aurora Labs launches Bitcoin Light Client, a smart contract-based Bitcoin verification solution on NEAR.
- The integration enables the creation of new DeFi applications that leverage both Bitcoin and NEAR networks.
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Aurora Labs, the team dedicated to developing the Aurora ecosystem, has unveiled Bitcoin Light Client and Relayer, its new products designed to connect the Bitcoin network to the NEAR protocol, the team said in a press release on Tuesday.
The integration is intended to open up new opportunities for decentralized finance (DeFi) applications and expand Web3 interoperability, Aurora Labs said.
Developed by Aurora Labs, the Bitcoin Light Client acts as a smart contract on the NEAR network, allowing NEAR dApps to verify Bitcoin transactions and maintain access to the most up-to-date Bitcoin chain status. This essentially lays the groundwork for a future Bitcoin bridge that will facilitate the use of Bitcoin assets on NEAR.
“There is a lot of untapped potential in the Bitcoin ecosystem. NEAR Chain Signatures are a solid step forward, but to truly unlock Bitcoin’s potential, we need to be able to read and respond to its state,” said Alex Shevchenko, CEO of Aurora Labs.
“That’s why we developed a trustless Bitcoin Light Client that works as a smart contract. Together with Chain Signatures, we are opening the door for Bitcoin to finally enter the DeFi world,” Shevchenko added.
While the Bitcoin Light Client enables transaction verification, the Relayer ensures that the Light Client stays synchronized with the Bitcoin network. According to the team, it will act as a conduit that continuously updates the NEAR smart contract with the latest Bitcoin transactions.
In addition to the two products, Aurora Labs has released a chain signing service from Proximity Labs that supports the creation of native Bitcoin bridges and enables BTC transfers to and from the NEAR network.
“The BTC Light client is an important part of the Bitcoin stack that NEAR now enables,” said Kendall Cole, founder of Proximity Labs. “Combined with chain signatures, developers can build an entirely new set of applications for Bitcoin users, including money markets, DEXs, launchpads, stablecoins, and more, all with seamless user experiences.”
Aurora Labs also announced plans to launch the Satoshi Bridge, the next step in connecting the Bitcoin and NEAR ecosystems. The bridge will allow users to transfer Bitcoin (BTC) directly to the NEAR blockchain.
It will also support runes and ordinal numbers, giving developers even more options for creating innovative DeFi applications, the team hinted.
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