BTC users will soon have access to smart contract functionality without the need to bridge, wrap, or give up control of their BTC through a new integration between dWallet Network and Avail.
The collaboration between dWallet and Avail will allow smart contracts created on Avail’s data availability solution to generate Bitcoin signatures for the first time while still ensuring that users maintain full control of their BTC.
Omer Sadika, co-founder and CEO of dWallet, explained to Cointelegraph that the Bitcoin rollup solution will work directly with native BTC without the need for bridging or wrapping, which has historically created significant incentives for hacking or collusion.
He emphasized that the Bitcoin community has been critical of Bitcoin rollups or “layer-2s,” often condemning solutions for deceiving users into bridging or wrapping BTC in exchange for other tokens, a concern that Sadika aims to address with Avail’s integration.
Sadika highlighted that dWallets enable native programmable BTC where a user’s signature is cryptographically required, with multi-party computation (MPC) forming the core of this functionality. MPC allows multiple parties to compute a function together without revealing their inputs to each other, enabling decentralized MPC dWallet Network wallets to generate Bitcoin transactions.
A smart contract on an Avail rollup is needed to approve the transaction, and the user must sign for the Bitcoin transaction. This smart contract on an Avail rollup can enforce various logic, such as custody, swapping, lending, or staking, while the user’s participation cryptographically guarantees that no one can collude or hack to steal the user’s assets.
The collaboration aims to leverage dWallet’s MPC infrastructure to expand Bitcoin’s capabilities by enabling the creation of native rollups, allowing smart contracts to run any logic and utilize native BTC without the need to bridge or wrap tokens. This means that DeFi protocols like swapping or lending can now utilize native BTC, as well as other use cases such as staking native BTC, DAOs controlling native BTC, trading a portfolio of ordinals, or gaming.
According to Anurag Arjun, co-founder of Avail, allowing BTC to be used programmatically on other blockchains through a trust-minimized approach is a novel way to drive Bitcoin adoption, harnessing Bitcoin’s superior security in the ecosystem.
With dWallet technology, a Solidity smart contract on an Avail rollup can create Bitcoin signatures and enable developers to manage a dWallet, ensuring approval from the Avail rollup smart contract for logic enforcement and requiring users to finalize the signature to prevent collusion and asset theft.