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Internet Computer Issues ‘Liquid Bitcoin,’ for Faster, Cheaper BTC Transactions
ckBTC brings layer-2 capabilities to Bitcoin, while also ensuring greater security and decentralization than other BTC-pegged tokens, developers say.
Updated Apr 3, 2023, 8:57 p.m. Published Apr 3, 2023, 1:15 p.m.
The Dfinity Foundation, a significant contributor to the development of the Internet Computer network, on Monday issued ckBTC – a liquid and cost-efficient “twin” token that is backed on a 1:1 basis with bitcoin (BTC).
The development brings layer-2 capabilities to Bitcoin, making it faster and cheaper to transact without compromising security. Layer 2s refer to a secondary framework or protocol that is built on top of an existing blockchain system.
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By integrating directly with the Bitcoin network, ckBTC can be used on decentralized-finance applications on supported networks without relying on centralized bridging services, which are a major security concern.
“ckBTC means low transaction fees, speed, and, most importantly, no bridges,” Dominic Williams, founder of Dfinity, said in a note to CoinDesk. “This is a milestone in the Bitcoin journey, and the Dfinity Foundation is excited to see how projects building on the Internet Computer blockchain implement ckBTC and explore novel use cases.”
But while bitcoin integration unlocks opportunities, it also inherits the slow and expensive transaction times associated with the Bitcoin network. To combat that, Internet Computer has set fees on Liquid Bitcoin to just 0.0000001 ckBTC, or a few cents, at a value significantly lower than Bitcoin network fees.
Unlike wrapped tokens controlled by a centralized entity, ckBTC uses canisters – smart contracts for asset transfers – and doesn't require intermediaries or risky cross-chain bridges. Users deposit real bitcoin to their deposit address and receive an equal amount of ckBTC. Similarly, users can return ckBTC tokens to receive an equal amount of real bitcoin at a specified bitcoin address.
In February, Bitcoin network activity surged to a two-year high thanks to the popularity of the recently deployed Ordinals protocol – which allows non-fungible tokens to be stored on-chain.
Bitcoin layer 2 protocols such as Stacks have since surged as Stacks' STX tokens was one of the best performers in March, suggesting demand for similar protocols.
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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Ce qu'il:
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