Cardano To Be Closely Integrated with Bitcoin via BitcoinOs

Cardano senses the dawn of a new era: Bitcoin OS wants to make it possible to turn the ADA network into Layer 2 for BTC. Technologically, this is by no means trivial, but in terms of content it is fascinating.

Bitcoin (BTC) is on the hunt for records, a new all-time high is within reach. In this situation, an exciting concept has received less attention than it actually deserves. Cardano (ADA) is to be closely integrated with Bitcoin, as BitcoinOS explains in a blog post. Cardano founder Charles Hoskinson is already signaling support. But how is this supposed to work and what is the benefit of a new interface between BTC and ADA?

Bitcoin’s blockchain was not actually intended for more complex tasks. But since the beginning of last year, resourceful developers have discovered ways to use ordinals and later runes to implement crypto trends such as NFTs and meme coins in Bitcoin. This also laid the foundation for BitcoinOS, which builds on BitVM and indirectly enables smart contracts for BTC. Cardano is now set to become the first major cryptocurrency with its own blockchain that benefits from BitcoinOS.

You should know: Cryptocurrencies with a technologically independent blockchain are referred to as Layer 1, and this is where Bitcoin and Cardano have something in common. Layer 2 are typically projects that score points in the Ethereum (ETH) ecosystem. There, MATIC, Arbitrum and Co. take on tasks, validate transactions and smart contracts and then document the results in a bundled form in the Ethereum blockchain. Cardano is set to take over this position in Bitcoin if the BitcoinOS concept works.

Bitcoin with Cardano as Layer 2 – a dream couple?

This is where it pays off that Cardano stands out among the major altcoins with its advanced decentralization, which generates trust. Bitcoin, on the other hand, with its current market capitalization of over 1.4 trillion US dollars, has huge sums of money behind it, the possible uses of which are very limited. Wrapped Bitcoin has established a solution to be able to use BTC in the Ethereum ecosystem. BitcoinOS now promises to go a step further and use a bridge to transfer “pure” Bitcoin to Cardano.

There, BTC could then be used for decentralized finance, blockchain gaming, NFTs and more because the ADA network is multi-functional. Cardano’s market capitalization is a good 12 billion US dollars and a financial boost from Bitcoin introduced into the ecosystem has potential for expansion. BitcoinOS reported that it is already working with Cardano developers from Emurgo on the actual heart of the plan, the BOS Grail Bridge, which is intended to create a secure connection between the two disparate ecosystems.

BitcoinOS speaks of an “earthquake in terms of liquidity” that Cardano can expect from Bitcoin. The Cardano community is still bothered by the formulation of becoming a layer 2 for Bitcoin – but ADA urgently needs new ideas and BitcoinOS provides one. Cardano spokesman Charles Hoskinson has also ended his private feud with BTC (for now) and is already promoting the shoulder shot with BitcoinOS on X.

Conclusion: Will Bitcoin become Cardano’s savior?

A target date for the launch of the BitcoinOS bridge between BTC and Cardano has not yet been announced. From an investor’s perspective, ADA has been in a deep crisis for more than two years, with the price curve moving 90 percent away from previous Cardano highs.

The capital-strong impulse from Bitcoin would come in very handy, and BTC investors would also be interested in letting their capital work passively with new opportunities. The irony of the story: Hoskinson had repeatedly dreamed of other ecosystems such as Dogecoin (DOGE) or even Solana docking with Cardano. Now the plan to use Cardano itself as Layer 2 for Bitcoin is becoming ADA’s hope of stopping the loss of value and importance.

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