Bitfinity Network improves how decentralized applications (DApps) work by handling high throughput and enabling fast, efficient token transfers. It rethinks how blockchains process data, allowing for smoother interactions across networks. Put simply, with its architecture and cross-chain technology, Bitfinity aims to improve blockchain for developers and community members.
In this article, we'll explain what the Bitfinity Network is, how it works, and how the technology compares to competing Bitcoin Layer-2 solutions.
TL;DR
Bitfinity Network uses sharding and parallel processing for fast Ethereum Virtual Machine transactions.
Asynchronous tokens enable rapid cross-chain bridging and improve scalability.
BitFusion securely bridges blockchains like Bitcoin and Ethereum with chain-key cryptography.
Onchain and offchain components are kept separate, improving data management and throughput.
Bitfinity wants to be a flexible alternative to other Layer-2 solutions for developers and community members.
How does the Bitfinity Network achieve EVM scalability?
If you’re tired of the sluggish transaction speeds on some blockchains, Bitfinity is rethinking how the Ethereum Virtual Machine (EVM) handles transactions. Rather than traditional sequential processing that can slow things down, Bitfinity brings sharding and parallel processing.
Regular blockchains handle one thing at a time, like a single cashier at a busy grocery store. Bitfinity, on the other hand, opens up multiple checkouts — each one an EVM processor that can handle hundreds of transactions per second. So, instead of waiting in line, transactions get processed simultaneously, massively increasing throughput and speed.
How does sharding work? Imagine the network as a puzzle with many pieces. Each piece is a shard, standing alone but fitting together to make the whole picture. In the Bitfinity Network, tokens are like separate actors that can be processed at the same time across multiple shards.
This means a single thread of execution doesn’t bog down the network. Tokens are deployed independently from the EVM, allowing for parallel processing and lightning-fast finality — usually within one to two seconds.
This isn’t just good news for developers who need a scalable platform for their decentralized applications (DApps) — it’s also a win for individuals who want quick, seamless transactions. The architecture is designed to grow linearly. As the network grows, more EVM processors can be added, keeping up with demand without losing performance.
What role do asynchronous tokens play in the Bitfinity Network?
Unlike standard tokens that can hit bottlenecks when moving across networks, these tokens are designed to speed things up and improve how transactions are processed and finalized. Let's look now at how the technology achieves this.
ICRC-2 standard
Asynchronous tokens follow the ICRC-2 standard — considered by many to be like ERC-20’s agile sibling. While the ERC-20 standard is effective, it’s built for more sequential operations.
On the other hand, asynchronous tokens are adapted for parallel processing, meaning multiple transactions can happen simultaneously without stepping on each other’s toes. This keeps the network fast and efficient.
Just-in-time bridging
One key feature of asynchronous tokens is their ability to enable just-in-time bridging. Imagine transferring tokens between different subnets or across various EVM cases almost instantly. That’s the power of these tokens. Like express lanes on a busy highway, they allow you to move assets quickly between different parts of the Bitfinity Network.
Cross-chain bridging
As blockchain ecosystems expand, the need to move tokens across different chains is growing in importance. Asynchronous tokens are built to handle cross-chain bridging efficiently.
They’re designed to work with multiple assets across different blockchains. This helps create a smooth and secure experience for individuals looking to bridge tokens between different networks.
Enhanced transaction speed
By enabling parallel token processing, these tokens also reduce the wait times typically associated with sequential transactions. The network can handle up to 500 concurrent invocations, with transfers completed in just a few seconds.
Why does this all matter?
Not only do the above features help Bitfinity Network deliver speed, they also offer a scalable and user-friendly experience. With the Bitfinity Network, assets can flow freely within subnets or across chains. Meanwhile, asynchronous tokens help ensure smooth operations.
How does a Bitfinity EVM work?
Bitfinity’s EVM architecture is split into onchain and offchain components, each handling specific tasks to keep the network running smoothly.
Onchain components
Below are the different components of the Bitfinity EVM that manage transactions directly.
EVM executor
The EVM executor is the main processor. It handles transaction execution, smart contract operations, and blockchain updates. Whether you send crypto to a friend or deploy a DApp, the EVM executor is responsible for processing things correctly without any hiccups.
Ethereum JSON RPC API
The Ethereum JSON RPC bridges the Bitfinity EVM to external tools like wallets or DApps. When you complete a transaction, this API translates it into a format the EVM can process.
Transaction pool and blockchain data
Transactions are queued in a transaction pool before they're processed. Recent blocks and state information are stored in the blockchain data, typically covering the last few weeks. This makes sure the network remains responsive and up-to-date.
Offchain components
The technology's offchain components handle data management separately from the real-time transaction processing to maintain high efficiency.
Block extractor
This component stores data from the onchain network in a cloud-based database, ensuring data is backed up and quickly retrievable. This setup guarantees that no transaction data is lost.
EVM archiver and adapted reth node
The EVM archiver maintains a complete history of the EVM state, which is vital for developers who need to analyze or debug contracts. Meanwhile, the adapted reth node ingests and manages all block data, offering a comprehensive historical network view.
Improving data management and throughput
The Bitfinity EVM architecture is structured to separate responsibilities between onchain and offchain components. The EVM executor can focus on real-time transaction execution, while the offchain components handle data management and storage.
This specialization allows the system to achieve faster transaction throughput without being bogged down by heavy data retrieval tasks.
How does BitFusion improve cross-chain asset bridging?
Cross-chain technology is important for any ecosystem, as it provides seamless transactions from one blockchain to another. BitFusion, which is part of the Bitfinity Network, aims to securely bridge assets across EVM networks, Bitcoin, and even more unique tokens like Bitcoin Runes.
Asset transfer
The goal of cross-chain bridging is to make the user experience as smooth as possible. BitFusion enables this by ensuring that asset transfers between blockchains are fast and secure.
Whether you’re moving tokens from Ethereum to Bitcoin or vice versa, BitFusion acts as the bridge, making the process feel like a quick stroll rather than a complex trek.
Chain Key cryptography
BitFusion uses Chain Key cryptography for security. This advanced cryptographic scheme makes sure that all asset transfers aren’t just fast but also secure. Using Bitcoin nodes, every transaction is validated, keeping bad actors away and your assets safe.
Decentralized bridge
BitFusion operates as a decentralized bridge, which means there’s no single point of failure. Unlike some bridge solutions that hold assets in one place, BitFusion’s decentralized nature spreads the risk, making the whole process safer and more open.
Supports multiple assets: It’s not just about transferring Ethereum or Bitcoin. BitFusion’s adaptable framework allows for bridging a wide range of tokens, including Bitcoin Runes, providing flexibility and improving the overall user experience.
EVM to Bitcoin bridge: Traditionally, bridging assets between EVM networks and Bitcoin has been tricky due to their different architectures and programming languages. BitFusion’s bridge canister connects them seamlessly, allowing assets to flow easily between chains.
Why BitFusion matters
Sometimes, bridging between chains can be a bottleneck. BitFusion has the ability to connect blockchains quickly and securely.
Using Chain Key cryptography and a network of connected nodes makes it easier to transfer digital assets across chains. It also opens up new possibilities for DeFi participants, traders, and developers.
How does BitFusion bridge Bitcoin and Runes?
When bridging assets like Bitcoin and Bitcoin Runes, BitFusion provides tailored solutions to guarantee secure cross-chain transfers. The complexity of moving different tokens between blockchains requires specific tools and protocols. In response, BitFusion has built a framework to manage cross-chain transfers.
Bitcoin Bridging with ckBTC
To transfer Bitcoin between blockchains, BitFusion uses a mechanism called ckBTC, which essentially “wraps” Bitcoin to enable seamless transfers across EVM-compatible networks. This process retains Bitcoin’s value while allowing it to interact with different chains. Here’s how it works.
tECDSA for secure signing: A crucial element of this process is using the threshold Elliptic Curve Digital Signature Algorithm (tECDSA). This cryptographic approach enables decentralized signing of transactions, ensuring that private keys are never exposed during the transfer process. By employing tECDSA, BitFusion maintains the security of Bitcoin transfers.
Canisters for transaction handling: In the BitFusion framework, “canisters” act as smart contracts designed to manage all aspects of the transaction, from wrapping Bitcoin as ckBTC to finalizing its transfer. This setup allows for decentralized and secure transactions, which are executed quickly and accurately.
Bridging Bitcoin Runes
Bitcoin Runes are another type of asset that BitFusion can bridge. Unlike standard tokens, Runes contain specific metadata that must be preserved and interpreted correctly during transfers. BitFusion’s framework is well-suited to handling these complexities.
OP_RETURN metadata: Runes transactions store important details in the OP_RETURN field of a Bitcoin transaction. This field includes metadata, which is crucial for Runes functionality. BitFusion uses this metadata effectively to identify, track, and bridge Runes tokens without losing any critical data.
Decentralized token indexer: To make sure Runes transactions are accurately processed, BitFusion employs a decentralized token indexer. This indexer acts as a record-keeper, efficiently parsing and organizing all the data associated with Runes to facilitate correct bridging.
A modular approach to asset bridging
BitFusion’s modular design is key to its effectiveness. By developing specialized protocols for each type of asset — such as ckBTC for Bitcoin and metadata handling for Runes — the framework can easily adapt to support a wide variety of tokens.
This flexibility makes sure that each asset type is bridged seamlessly and securely, regardless of its unique requirements
Why this matters
BitFusion’s approach is comprehensive and robust for secure and efficient cross-chain asset transfers.
The framework facilitates seamless bridging by integrating ckBTC wrapping for Bitcoin, tECDSA signing for transaction security, and OP_RETURN metadata management for Runes.
The modular structure of BitFusion ensures adaptability, allowing it to handle different token types with precision.
Comparing Bitfinity to other Bitcoin Layer-2 solutions
We’ve seen more and more Bitcoin Layer-2 solutions emerge over the last couple of years, like Merlin, RSK, STACKS, and BOB — each taking a unique approach. Let’s explore how Bitfinity compares.
Adaptive membership and key re-sharing
One of Bitfinity’s primary features is its adaptive membership model. Other Layer-2 solutions often use static node groups to protect the network. Bitfinity’s dynamic approach lets the group of nodes change regularly. This can contribute to improved security and decentralized control.
Regular key re-sharing: Keys are re-shared about every 10 minutes, reducing the risk of compromised keys. Solutions like RSK and Merlin typically maintain more fixed key structures. This frequent re-sharing in Bitfinity aims to provide additional security against adaptive attacks.
Decentralized onchain indexers
Some Layer-2 solutions, like BOB, use third-party indexers (GoldSky) to handle token data. Bitfinity takes a different approach by implementing onchain indexers. This decentralized method can improve transparency and provide direct access to token information from the blockchain, reducing dependency on external services.
Transparency and reliability: With onchain storage of data, Bitfinity aims to improve reliability and make data easily accessible for cross-chain transactions.
Modular bridging across assets
Bitfinity employs a modular bridging approach that tailors the process for each asset type, such as Bitcoin, Runes, or other tokens. This design contrasts with solutions like Merlin and RSK, which often use a single, unified method for bridging all assets.
Developer flexibility: The modular framework allows developers to add new tokens or change protocols, giving them more options as the ecosystem changes.
Chain-abstraction for faster transfers
Bitfinity also introduces chain-abstraction, a mechanism for aggregating multiple transactions into a single UserOperation. This bundling can lead to faster chain transfers, minimizing the wait times often seen in other Layer-2 solutions. This approach is intended to provide a more efficient and user-friendly experience for cross-chain transactions.
Enhanced user experience: The goal of this feature is to simplify the bridging process by minimizing multiple confirmations and providing a smooth transfer across chains.
Comparative analysis
While RSK leverages merge mining and STACKS aligns with Bitcoin’s hashing power, Bitfinity uses adaptive membership, modular bridging, and onchain indexing. These features are designed to create a more flexible, open, and transparent method of chain transfers. The goal is to meet the different needs of developers and community members.
Bitfinity introduces adaptive security, decentralized data tracking, modular asset bridging, and faster transactions. These features make it an alternative to Bitcoin Layer-2 solutions for secure cross-chain bridging.
The final word
Bitfinity Network makes the EVM faster and more efficient through sharding and parallel processing. This allows transactions to be completed much faster.
Tokens are processed simultaneously across multiple shards, improving scalability. Meanwhile, asynchronous tokens like ICRC-2 allow instant cross-chain bridging, streamlining asset transfers.
BitFusion securely connects blockchains like Bitcoin and Ethereum, using Chain Key cryptography for decentralized, secure asset movement. This flexible approach works with different tokens, making transactions fast and accessible across the chain.
FAQs
Bitfinity Network speeds up transaction processing by using sharding and parallel processing to the Ethereum Virtual Machine (EVM). It uses multiple EVM processors to handle hundreds of transactions simultaneously, increasing throughput and reducing wait times.
Bitfinity Network’s asynchronous tokens enable fast cross-chain transactions. They use the ICRC-2 standard for parallel processing, allowing multiple transactions to be processed at once. The tokens also support just-in-time bridging for quick asset movement between subnets or EVM, improving speed and scalability.
BitFusion secures cross-chain transfers using Chain Key cryptography. All transactions are securely signed and validated. It acts as a decentralized bridge, eliminating single points of failure and protecting assets during transfers.
Bitfinity uses adaptive membership to reshuffle key ownership every 10 minutes, improving security compared to other Bitcoin Layer-2 solutions. It also employs onchain indexers for transparent data tracking, while offering modular bridging to adapt easily to different assets. With chain abstraction, cross-chain transactions are made faster and more efficient by combining several operations into one simple transfer.
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