Charles Hoskinson introduces the first Bitcoin Defi protocol in Cardano Network.
Alisa Davidson
Post: June 10, 2025 3:01 am update: June 10, 2025 3:02 AM
Edit and fact confirmation: June 10, 2025, 3: 1 am
simply
Charles Hoskinson introduces Bitcoin’s first defendant protocol in Cardano to use Bitcoin utxos directly for features such as loans and stewing of Cardano blockchain.
Charles Hoskinson, the founder of Cardano blockchain, announced the introduction of Cardinal, the first defi protocol of Cardano’s Bitcoin. This platform provides non -parenting cross chain operation using MUSIG2 multi -signing encryption technology to use Bitcoin incomplete transaction output (UTXO) directly on functions such as loans and staying of Cardano blockchain.
This includes support for ordinance inscriptions used as collateral. Cardinals indicate an initial way that Bitcoin can interact with the Cardano network without containing third -party custody. The system wraps bitcoin utxos with Cardano, and the Bitcoin Ordinance is indicated by a token (NFT) that cannot be visible. This packaged UTXO can be transmitted similarly to Native Cardano assets with a strict one -on -one peg with the original Bitcoin. The user can search the default bitcoin in the original blockchain to burn the packed tokens. This improves the functional range of Bitcoin and at the same time affects a wide range of interoperable applications, showing the possibility of safe cross chain integration of passionate and abusive (NFT) digital assets.
In order to maintain security and operational consistency when there is no proof of recursive status for both Bitcoin and Cardano, we supervise the system by a responsible operator group that enables safe and efficient asset transmission in two networks. This framework is managed by a trust waiting protocol based on the assumption that at least one operator acts honestly. Unlike conventional united models that rely on an honest majority for security, this approach is only a single reliable operator to protect asset integrity. Unlike other trust monitoring bridges for Bitcoin, the system does not depend on external liquidity providers, but technically integrated. Instead, you can use the alternative mechanism for transfer of ownership to assign Bitcoin assets directly to the validable recipient. The system is basically described using NFT wrapping as an example, but the default architecture is designed to accommodate the packaging of a normal UTXO. As a result, this model provides potential as a basic component of a wide range of crosschain applications, including bridging of the tokens that can be eliminated.
Perspective: forward towards the token leg that can be eliminated
As Cardinal Protocol develops towards the initial production release, various possibilities are introduced within the blockchain environment. Technically, the planned integration of components such as Bitvmx, Mithril, AIKEN Smart Contracts and Zero-Knowedge Proofs (ZKPS) suggests frameworks that can be attached to the distributed principles while supporting complex crosschain interactions. As the system develops, continuous search on aspects such as scalability, operational stability, security and performance efficiency is still important. At an economical level, the structure of the protocol can be a reference point for creating another trust model bridge by crossing the blockchain network, and contributes to the connectivity and functional diversity of the more extensive digital asset environment.
From the end of the end user’s point of view, the ability to transfer assets between Bitcoin and Cardano without friction presents a new way for the dispersed service and participation with the marketplace. Nevertheless, the development of intuitive user interface and accessible documents is necessary to encourage extensive participation. At the same time, the legal and regulatory levels of the cross chain system should pay continuous attention as these technologies continue to develop.
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About the author
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
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Alisa Davidson
Alisa, a dedicated reporter for MPOST, specializes in the vast areas of Cryptocurrency, Zero-ehnowedge Proofs, Investments and Web3. She provides a comprehensive coverage that captures a new trend and a keen eye on technology, providing and involving readers in a digital financial environment that constantly evolves.
More