During Paris Blockchain Week, senior research scientist Aisling Connolly shared insights with Cointelegraph on how the Internet Computer Protocol (ICP) plans to revolutionize decentralized finance (DeFi) and smart contract functionality on Bitcoin's base layer. By integrating advanced threshold cryptography, specifically threshold-Schnorr signatures, ICP aims to enable smart contracts to directly interact with the Bitcoin blockchain.

Schnorr signatures, named after mathematician Claus Schnorr, serve as a cryptographic tool facilitating secure transactions without revealing sensitive information. With this implementation, ICP smart contracts will gain the ability to perform a multitude of functions, including signing Schnorr signatures, inscribing Ordinals, and bridging BRC-20 tokens directly on the Bitcoin base layer.

Connolly explained that the integration of Schnorr signatures offers various benefits, such as transaction batching and enhanced security, making it simpler and faster compared to ECDSA signatures. This advancement opens up new possibilities for decentralized applications (DApps) and services that can leverage the liquidity and security of Bitcoin without relying on centralized bridges.

Several working use cases are already in development within the ICP ecosystem. These include serving as an orchestration layer for existing DApps on Ethereum to interact with Bitcoin and pioneering new applications like Taler DAO, an algorithmic Bitcoin-backed stablecoin.

While the integration may face scrutiny from traditional Bitcoin proponents, Connolly noted a growing openness within the Bitcoin community towards infrastructure that expands Bitcoin's utility. Over 300 developers are currently building Bitcoin-enabled DApps across various sectors, highlighting the potential for ICP to reshape the landscape of decentralized finance and blockchain interoperability.